9/9/2009 11:05:00 AM
Virgin Mobile approves T-Mobile and Orange merger
Virgin Mobile has signalled its approval of the deal that will see its MVNO partner merged with Orange.
The MVNO is understood to be happy with the alliance as it will provide an enhanced network and give its customers greater coverage.
However, some have speculated that Virgin Mobile might be used as a ‘bargaining chip’ to dispel competition issues in the newly merged company.
CCS Insight research director Ben Wood said: ‘What is really interesting about the merger is what happens to Virgin Mobile.
?It could be used as a bargaining chip with the regulators. They may be willing to sacrifice Virgin Mobile and have it transferred to another network to appease the regulator.’
Phil Kendall, analyst at Strategy Analytics, said: ‘Giving Virgin Mobile as a sop to the regulators would make sense, as it doesn’t generate a massive amount of revenue for T-Mobile anyway.’