OFT satisfied with Orange/T-Mobile competition remedies

The OFT has withdrawn its request to the European Commission (EC) to review the UK aspects of the joint venture between Orange and T-Mobile after the companies offered remedies that fully address the OFT's outstanding competition concerns.

The OFT's concerns related to the impact of the joint venture on the retail mobile telephone market, especially on Hutchison 3G ('3') given the infrastructure sharing agreement it currently has with T-Mobile.

Separately, the OFT was concerned that the joint venture could have prevented competition emerging in the fourth generation (also known as '4G') mobile telephony market given the particular spectrum holdings that the company would enjoy.

Since then, Orange and T-Mobile have offered remedies to the EC. In particular, the parties have:

offered to divest certain quantities of their 1800MHz spectrum, and
reached an agreement with 3 which ensures that 3's ability to compete in the retail market going forward is not affected as a result of the transaction.

The OFT has worked closely with the EC and Ofcom to review these proposed remedies, and is satisfied that the joint venture will not now have an adverse impact on competition within the UK. It has therefore formally withdrawn its official request to the EC, and the EC has also today announced that it has cleared the Orange/T-Mobile joint venture.