Analysis of Deutsche Telekom AG and France Telecom SA Joint Venture
On September 8, 2009, Deutsche Telekom AG and France Telecom SA announced their plan to pursue a joint venture with their T-Mobile and Orange subsidiaries. Orange UK and T-Mobile UK became largest communications company in the UK, under the umbrella brand, Everything Everywhere, officially on July 1, 2010 (Orange 2014).
2. What was …show more content…
One of the major concerns of the European Commission for the merger between T-Mobile and Orange UK were the product markets that could be affected. The following four markets were questioned if they would affect the competition market in the UK:
1. Mobile telecommunication services to end customers
2. Wholesale access and call origination on public mobile telephone networks
3. Wholesale market for international roaming
4. Wholesale market for mobile and fixed call termination
Mobile Telecommunication Services to End Customers - The EC wanted to verify if the network services (2G and 3G) offered should be divided into separate markets or integrated into one. However, after analysing the market, the EC realised that both networks offer similar multimedia and data services and decided that it should be a single market, as long as both networks can offer both the services. This condition for the network services would only be relevant on national terms (i.e. only applied to the UK market) (European Commission 2010).
Wholesale Access and Call Origination on Public Mobile Telephone Networks - The next market to be examined was whether call origination and network access should be a single market or separated. Usually, both of these services are offered as a package by a Mobile Network Operator (MNO), thus can be considered as a single market. In addition, Service Providers offer two ways of offering SIM cards; either they issue