Deutsche Telekom and France Telecom in deal to become UK’s biggest operator
DEUTSCHE Telekom and France Telecom last night signed the final agreement to combine T-Mobile and Orange to create the UK’s largest mobile operator.
The two parent companies had been carrying out due diligence on the 50-50 venture, which was first announced on 8 September. It will now have to go to the regulators for approval, with a view to launching by the middle of 2010. The venture will have a 37 per cent market share, overtaking the current market leader O2, which has 27 per cent.
T-Mobile yesterday reported a 14.6 per cent drop in year-on-year revenue in the third quarter to £853m, and earnings nine per cent lower at £159m, though the results showed consistent improvement since the first quarter of the year.
Parent company Deutsche Telekom posted a third-quarter core profit above expectations at €5.5bn (£5bn) and confirmed its outlook for 2009 of adjusted earnings before interest, tax, depreciation and amortisation two to four per cent lower than the €19.5bn it made in 2008.