DT, Orange unveil JV plans for U.K. market

Following up on plans announced last fall, German telecom giant Deutsche Telekom AG and France’s Orange unveiled its joint venture that will combine their respective mobile operations in the United Kingdom.
Both companies are two of the largest mobile operators in the world.
The JV, ambitiously dubbed Everything Everywhere Ltd., claims title as the largest communications company in the U.K. serving a customer base of 30 million people, or more than half of the U.K.’s adult population.
While the companies touted the benefits of combining their efforts, most of that synergy will be behind the scenes as they said both brands will continue to market their services to consumers. That behind the scenes integration will officially kick off on July 1 and will involve a single organization managing the operations and the all 16,500 employees, a majority of which are coming from Orange.
The JV will be lead by Orange CEO Tom Alexander who will continue as CEO of the new operation, and DT’s Richard Moat who will be CFO and deputy CEO.
The JV said that it will give each brand an equal platform in which to operate from, though there could be changes their combined 713 retail locations.
“Together Orange and T-Mobile have over 700 stores on the British high street today,” the companies noted in a press release. “The company is now looking at continuing to improve and evolve its estate to generate more sales and cement its position as the U.K.’s No. 1 communications company.”
Orange currently claims 420 retail locations, while T-Mobile counts 293.
The JV is also looking at taking out duplications in its combined network assets to create what it again ambitiously termed a “single super-network.” The JV added that later this year customers will begin to be able to roam across their respective networks at no additional cost. The JV would also presumably expand the availability of Apple Inc.’s iPhone from its current home at Orange to T-Mobile customers.