5/5/2009 11:30:00 AM
Speculation over T-Mobile and Orange tie-up
A T-Mobile tie-up with Orange is likely, say analysts as Deutsch Telekom consider selling the UK arm of T-Mobile.
It is thought unlikely that the UK competition authorities would veto a move by Orange’s parent company, France Telecom, to buy T-Mobile UK.
Management of T-Mobile's parent company, Deutsche Telekom, is under pressure from shareholders to decide whether to sell its under-performing UK arm.
Orange's plans to sell phones in HMV has raised concerns that customers will struggle to understand why both brands are in one place.
Instead of seeing the links between the two brands, some say that customers are more likely to wonder why an Orange salesman is trying to sell them phones in a music store.
Previous similar deals, have foundered. HMV and 3 announced an alliance two years ago, a partnership which was dispanded after failing to take off.
Meanwhile, Ben Wood, of CCS Insight, a telecoms research group, argued that the tie-up is a good tactical move by the pair and that Tom Alexander, the head of Orange, has experience of such partnerships having sold mobile phones through Virgin Megastores when he was running Virgin Mobile.
Times, Financial Times
Ericsson, the mobile phone network equipment supplier, saw its net profits fall by 35 per cent last week.
The Stockholm based company posted a net profit of SwKr1.8 billion (£150.7 million) down from SwKr2.6 billion - Its operating profit fell by an even greater margin of 49%.
Ericsson’s chief executive, Carl-Henric Svanberg, said that it remained difficult to ‘precisely predict how operators will act in the current environment’. But he remained upbeat, adding: ‘The effects of the global economic recession on the global mobile network market are so far limited.’
Ericsson is slashing 5,000 jobs this year because it expects further spending cuts.