Orange and T-Mobile merger cleared

The European Commission has cleared the way for T-Mobile and Orange to merge its operations in the UK after receiving advice from a UK consumer body that it will "not now have an adverse impact on competition within the UK".

The Office of Fair Trading (OFT) withdrew its request for an EC investigation into the merger, having initially expressed concerns that it could stifle competition and also stunt the progress of 4G (fourth generation) mobile technology in the UK.

As a result, the EC has said that the merger - first proposed back in September 2009 - can go ahead.

"Now the way is clear for pooling our resources to create an outstanding high-speed mobile broadband network in one of the most competitive markets in Europe," said Tim Httges, chief financial officer of Deutsche Telekom, T-Mobile's parent company.

Gervais Pellissier, deputy chief executive officer of France Telecom, Orange's parent company said: "We are delighted to receive the EU clearance on our project to create a joint venture with Deutsche Telekom in the United Kingdom.

Both brands would continue to operate in the UK for at least 18 months after the completion of the transaction, expected to happen sometime in spring.

The two companies reckon that its combined customer base will add up to 29.5 million once the merger is complete.