Orange SA, a subsidiary of France Télécom, is a multinational telecommunications company with more than 170,000 employees, serves more than 230 million customers worldwide and has a turnover of 44 billion Euros as of 2013 (Orange 2014). T-Mobile, a German telecommunications subsidiary of Deutsche Telekom AG, has over 240 million customers worldwide and is the tenth largest mobile phone company in the world (Telekom 2014). On September 8, 2009, Deutsche Telekom AG and France Telecom SA announced their plan to pursue a joint venture with their subsidiaries T-Mobile and Orange. Orange UK and T-Mobile UK became the UK's largest communications company, under the Everything Everywhere umbrella brand, officially on 1 July 2010 (Orange 2014).2. What benefit did both companies expect from the merger? The benefit of the merger between T-Mobile and Orange was to become the UK's largest mobile network provider with 28 million customers and 37% of the market, leapfrogging rivals O2 and Vodafone. This joint venture offered Deutsche Telekom a solution to its problems in the UK, where T-Mobile was in fourth place and had underperformed its rivals. It also allowed Orange to improve its margins by sharing its wireless resources with T-Mobile. In this industry, companies must provide a nationwide network, meaning there are significant economies of scale to be realized with a merger. For example, when T-Mobile and Orange decided to merge, their ambition was to merge both networks, eliminate duplication and create a single supernetwork. Additionally, they said it would provide customers with a larger network and better coverage.3. Describe the relevant products/services and markets that may be affected by this concentration... half of the document ......presented a revised set of commitments, including recommendations from the OFT (Office of Fair Trading) and OFCOM (Office Federal Communications Commission). The first set of commitments did not precisely address competitors' concerns, particularly in relation to spectrum purchasing decisions. A second set of commitments was established on 25 February and the conditions were linked to: (i) 3UK's position in the market. The commission saw a risk that if the merger eroded the 3G RAN sharing agreement, it could eliminate 3UK as an effective competitor in the market. United Kingdom. Orange and T-Mobile sign an agreement with 3UK to avoid this problem. (ii) The concentration of spectrum in the 1800 MHz band. Under the 1800 MHz band, the Commission concludes that the concentration would have a dominant position on that market. T-Mobile and Orange are expected to provide 3UK with a network sharing agreement for full radio access.
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