EU legislators approve Orange/T-Mobile merger

But Long Term Evolution mobile services might still be some way off

EC gives thumbs up to Orange UK/T-Mobile Uk merger

The merger between France Télécom's (FT) UK mobile operator arm Orange, and Deutsche Telekom's UK mobile arm T-Mobile, has been cleared by the European Commission.

In a statement on the EU website, the EC also said that the UK Office of Fair Trading (OFT) had, "withdrawn its request to refer the case for review
by the UK Competition Authorities."

However, the cleared merger remains subject to an amendment of the radio access network sharing agreement (RAN) between T-Mobile UK, and Hutchison 3G UK (3UK); and to the new combined Orange/T-Mobile outfit giving up a quarter of its combined radio spectrum in the 1800MHz range.

Spectrum needed for next generation mobile services

According to the EC, If the 60MHz of prime 1800MHz radio spectrum was not given up, the newly merged group would: "end up being the only MNO in the UK able to offer next-generation mobile data services through Long Term Evolution [also known as 4G] technology at the best possible speeds within the medium term."

Additionally, there are concerns that other radio spectrum auctions will not be available for some time.

Independent Spectrum Broker Kip Meek has already said that another bandwidth usable by LTE, at 2.6GHz, won't be on the market before 2011. This bandwith has been characterised by the ITU as the "3G extension band".

The other chunk is the so-called 'digital dividend' part of 800MHz bandwidth, which will become available after the switchover to digital TV in 2012.

The possibility of a Conservative victory in the upcoming general election could also put a spoke in the wheels of any spectrum auction. The Tory party has said it would drastically reduce the power of UK comms regulator Ofcom.

But Ofcom would need to be heavily involved in consultation with the industry before the spectrum goes up for grabs; the regulator would also be in charge of conducting spectrum auctions.