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T-mobile and Orange set to merge

Tuesday, September 08, 2009
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The new OCR GCSE specification goes into more depth in the topic of business growth; students will learn about how businesses grow. The news today that T-mobile and Orange are set to merge is a great real world example for students to gain a greater understanding of this topic.

The merger will make the company the biggest mobile phone firm in the UK. This article explains further.

Questions

Using the BBC article answer the following questions:

1. State the market the merged company will have. (1)
2. Explain what is meant by the term integration. (2)
3. State what type of integration is going to take place. (1)
4. ‘Orange and T-Mobile said their deal - due to be signed by November - would “bring substantial benefits to UK customers”’. Explain using economic concepts how this merger will benefit customers. (6)
5. Explain how this merger may not be beneficial to customers. (6)


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