Orange-T?
Recommend on Google+
Is this going to be the new name of the proposed merger between T-Mobile and Orange?
As discussed in an earlier entry, T-Mobile came into play in June and it looked like a wave of consolidation may be on the horizon in the mobile network space. Competition concerns aside (which will no doubt follow in the next few weeks, if the bid gains momentum), it provides for an interesting case study when discussing the rationale behind growth, merging, and the risks involved. A good discussion of the effects the merger will have on consumers can be found here, which will be of paramount concern to both the UK Competition Commission and the EU Commission. With individual market shares of 22% and 15%, the merger will make the new entity bigger than the legal definition of a monopoly of 25%, and thus is likely to be investigated by the CC. The new entity will have 28 million customers, who no doubt should benefit from the increased synergies, and innovation; but may lose out through diseconomies of scale and rationalisation of staff.
blog comments powered by Disqus
ECONOMICS TEACHER RESOURCE NEWSLETTER
Join over 6,000 other Economics Teachers in the UK and around the world who receive the tutor2u regular Economics Resource Email Newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops + loads of great ideas for teaching economics from our blog authors.
