UK competition watchdog the Office of Fair Trading (OFT) is considering whether to review the planned merger of mobile phone companies Orange and T-Mobile after the two firms submitted their proposal to European regulators. The body has until 15 February to make a ruling on the matter.
A review of the merger, which will see the creation of the UK's largest mobile phone company, has been pushed by consumer groups including Which? and Consumer Focus. They would prefer to see the tie-up probed by UK authorities rather than their European counterparts - a call echoed by rival mobile firms.
Representatives for O2 commented that the proposed merger "and the resulting concentration of 1800 MHz spectrum" will distort the market for fourth-generation LTE (long-term evolution) services.
"It is a significant competition issue with serious implications for UK consumers, the government's Digital Britain agenda and future spectrum auctions," a spokesperson added. "We therefore believe the Office of Fair Trading should request for the merger to be reviewed in the UK."
France Telecom and Deutsche Telekom, parent companies of Orange and T-Mobile respectively, submitted their merger proposal to the European Commission for approval in the belief it will review it faster than the UK's competition authorities. There have been suggestions, however, that they looked to Brussels to achieve a more lenient hearing.
Orange is the third-largest mobile operator in the UK, while T-Mobile is the fourth. A tie-up of the two would create a new industry leader, overtaking both O2 and Vodafone.
The deal between Deutsche Telekom and France Telecom was formalised last November, two months after the proposed merger was announced.
