Orange/T-Mobile has taken the safe option in deciding to
maintain both brand names, analysts said today.
The joint venture which will trade as Everything Everywhere but
maintain clear brand identification.
Phil Kendall, analyst at Strategy Analytics, said: 'From a brand
point of view that is politically the best option. It would be
crazy to throw these brands out and it would have been an awkward
discussion as to which to throw out. This is the easy and safe
John Strand of Strand Consult said the merger was following the
lines of similar deals in Europe.
He explained: 'This is more an infrastructure marriage than a
customer marriage. Basically they are following a multi brand
strategy building one factory whilst producing traffic together
as has happened in Sweden and Norway.
'They will maintain two
competing brands but they will go out and attract MVNOs to the
network as customers of a wholesale company selling traffic to
Orange and T-Mobile.'
Strand said the scale of the network will force O2 and Vodafone
to fully merge their networks. He said: 'They will have to find a
way to merge the networks. I believe they must be in talks
already and will have been in talks for sometime, as the scale
Orange, T-Mobile and 3 are getting from this is huge.'
Shaun Collins, md of CCS Insight, said the joint venture was now in
a position to attack the business market. He said: 'Our research
shows coverage is absolutely crucial to the business market. So,
particularly at T-Mobile, with the coverage monkey off its back
and with its aggressive tariffs and now with the best network it
can make real inroads in the business sector.'
Tim Shepherd at Canalys said Vodafone must use the time it has while Orange and T-Mobile continue to merge to strengthen their enterprise offering.
Shepherd also predicted that the umbrella brand of Everything
Everywhere could be used to raise awareness of the increased
network coverage whilst keeping the brands separate.
He said: 'Something like Powered by Everything Everywhere would be
a coherent way of explaining to the consumer the scale of the
merged network, something which is currently lacking.'