in late 2009 manager assinment auto saved)

8/6/2019 In Late 2009 Manager Assinment Auto Saved)

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0903949 Paul E. Bridge Week 11

In late 2009, France based Telecommunication companies France Telecom and

Germany based Telecommunication Deutsche companies Telekom planed to merge

their UK subsidiaries Orange and T-mobile. The two joined companies have planned to

create a 50-50 joint project in a planning to compete with others mobile phone sectors

such as 02 and Vodafone in the UK. Orange and T-Mobile business operations brought

UK competition levels into a line with other European Markets. Orange and T-mobile

have created the UK largest mobile network, with over proximately 30 million customers

and larger market share proximately of 37%. The deal joint between the two companies

seems to have helped Orange to gain a stronger grip in the UK market while T-mobile

seems to have increased its customers.

Two companies have planed their projects in the UK and they are working hand in hand

to offering essential settlements of better network coverage, better broadband

distribution, and improvements of customer services across the Britain. The two joined

companies were given a green light in February 2010 by European commission, after

France Telecom and German Deutsche Telekom offered to sell off some part of their

combined ratio bands in an exchange of European commission approval of the deal.

Orange and T-mobile merging have caused reduction of the number of the UK mobile

sectors from fifth to fourth, and this reduction allowed T-mobile customers to take

advantages on 3G of Orange coverage. The two companies shared infrastructure and

accounts management functions.

Orange and T-mobile share a potential power, with each brand owing clear expressive

subject in planning, marketing and brands distinctiveness although the two joined

companies are competing as separates brands in the market and in service across the

UK. The two companies have ambition to create a combining network and better

coverage for the customers or consumers and it is their first intention to have faster and

better coverage of network wherever within in the UK.

Since the two companies appeared in the UK mobile market, there had been full training

on local people and significantly, their existent encouraged and improved local

employee workers who are working with them across the UK. Orange and T-mobile

have not only particularly promoted network training to local people but also they have


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sustained development goals for taking responsibilities for customers, employees,

communities and the environment. The two companies have accepted environment

around them, for the best working practices and for the best business engagement

within the local people in the UK.

Orange and T-mobile have created a strong operations and offer high quality network

and services to the local community, the two companies have leverage on identifying

synergies and generate significant values. Orange and T-mobile will leave UK when

their period end, but they will leave behind many UK people with qualifications, which

can help them in their daily workplace anywhere in the world.

Orange and T-mobile merger changed the positions of administration system, culture

and location although it does not matter. The two joined companies positions changed

from being singled administration which has single decision to sharing decisions,

singled culture to mixture culture and change from their permanent place to the UK.

Their existent had allowed both UK and the two company managers or workers to share

different ideas, experiences and decision-making amongst themselves.

Orange and T-mobile policies have allowed their users to have much free access to

anything or mobile phone privately or publicly within the UK and any elsewhere

regardless of their: income, location, education or disability. Other way, Orange and T-

mobile Policies have been effective because they have played their policies to insure

that consumers or customers of theirs are beneficial from their operation mobile market

across the UK. They used their policy effectively to protect customers or consumers

from financial and physical harm and also protect customers from unreasonable

frustration and fretfulness communication, and make customers feel free to be able to

make inform choice. Orange and T-mobile operators policies are flexible and they have

allowed customers to ensure that mobile consumers are empowered and set to havegood deal and proper protection when things gone wrong in their mobile services.

Orange and T-mobile participation in the UK mobile market has subtracted some

number of mobile operators, but on the other hand the two joined companies have also

made a huge expansion stores across the Britain. Orange and T-mobile have


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proximately of 700 stores on the British high streets currently, and the two companies

have improved and evolved their assets to generate more sales and put themselves in

stronger positions as the UK number one communication companies.

The two companies are not creating new technology or information in the UK though,

but their more efforts on mobile market sectors have enhance the efficiencies profitable

of their parent France telecom and German Deutsche telecom companies as well as

promoting high potential strategies on their market.

The two companies have proximately of 30 million customers and they have shown a

high level and willingness to deliver the best services and the best brands to them. The

two companies have accelerated in the market and they have intended to drive their

businesses with greater focus in developing new revenue flows based on the way

customers will use their devices in the present time and in the future. Orange and T-

mobile have greater scale and they have developed new revenue flows in closest

market, example, mobile advertising and mobile commerce. The two companies have

offered the business with the best plans and values for mobile market across the Britain.

Using Orange and T-mobile have been hugely advantages on saving costs for the two

companies. This is so because the two companies have reproduced lots of things,

example distribution retailer stores. They usually get rid of some hired shops which

mean that in the long run they are going to save cost on wages and overheads that is to

say electricity and rent. Things like setting up the network system coverage, looking

how much power they can produce and how they present information to financial

sectors, were their well planned steps before their project. This is why now economy

scales for orange and T-mobile is growing bigger and better always. Their size is large

and so it has been easier for them to buying components or materials in bulk at cheaper

costs per unit. Orange and T-mobile have invested in modern technology and thereforeit is easier for them also to creating and relocating the variety of things anywhere over

the UK.

Orange is the larger band of the two, with 17.3 million and T-mobile with 13 million

customers. Orange has brought 86300 fixed line broadband to customers. Together, the


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two companies are capable in buying or supplying out the latest handsets and others

mobile technology. Orange and T-mobile benefit from technology (that is to say the two

companies included supply of gadgets and they have covered the latest technology

devices use for computer network) and this is what the customers wanted.

In term of human resources, Orange and T-mobile have employed better managers and

staff than the rest, because Orange and T-mobile have better position with everything

and they are capable to pay the best wages to employ the best staff. The two joined

companies have more experiences staff to helping their businesses to becoming

efficient, saving costs and increasing sales for them. Orange and T-mobile have gained

a lot of difference progressions in mobile market industries because they have

experiences staff with different academic background. Example, Orange or T-mobile

can employ excellent financial directors and excellent market managers and talent of

sharing ideas and come out with one important decision is always not a big problem.

Orange and T-mobile have introduced the best way of communication where local

communication program for staff and young people in particular have changed so far

from unemployed and support them to reach their potential. The two companies have

been keen enough to keep safety of mobile communication as their priority. They have

introduced lock filter free of charge for all customers, on all orange and T-mobile

devices. Orange and T-mobile have installed the largest UK company wide-range roll

out-smart masts to help their management energy more efficiency across their network

in the UK. They have carbon emission management to tackling climate change, they

have introduced handsets recycling, they have high offer to their customer pay as you

go and monthly payments programs. The two companies have responsibilities in

everything they do, example, protecting children from inappropriate contents, helping

out in the local communication and making mobile communication greener. This is

greater opportunities for the UK consumers to use up the services, network for the two

joined companies, but question is that would the two joined companies manage to hold

a majority of spectrum in the 1800 Megahertz band, which is particularly important for

mobile internal services based on 4G wireless technology?.


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However, the deal structure of the two joined companies 50:50 will not put the two

companies unable to make strong decisions if their boards are split down. The two

joined companies growing and saving costs are not only promoting their benefits but

also their saving would be equaling job losses and redundancies to local people as well

as local mobile market operators. Another doubt is that their services are more activities

in urban less in the rural areas.

So, the implication emerge with the two joined companies is that they have created

some sort of monopolies in the market and these monopolies have threatened the

survival of the existing mobile operators economic in the UK. Right now Orange and T-

mobile have proximately of 30 million customers and have market share proximately of

37% in the mobile phone industries in the UK. This might be good, but if the two joined

companies appear to dominating the mobile market, then there will be market failure in

the UK mobile sectors. And these market failures will have an impacted on financial

institutions. The loan payers would have harder situation to pay their loans to the banks

or would be harder for small businesses to save some money in the banks because

they have no increases in the mobile market and this is a very big potential impact on

financial institutions in the UK. Instability in many mobile operators has ruined the local

businesses participation in the mobile market sectors. Example, price instability in the

mobile market has caused smaller mobile operators not to be able to compete within

mobile market operations. Prices of mobile phones are still in fluctuation right now while

output of mobile operations have got limited used, so these mergers of joined

companies have given the UK small mobile operators economic negative strategies in

different levels and yet Orange and T-mobile have very much smaller choice of mobile

phone plans for people to choose from. This goes to shows not only how Orange and T-

mobile monopolies power can restrict the amount of products in market but also this

means that the two companies have frustrated consumers or customers and on top ofall these, Orange mobile operators had not been satisfying the consumers or customers

with quality performance of their broadband network.

So, what is the government thinking about orange and T-mobile domination the market?

If the UK government does not acts upon and warns these two joined companies, then


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their dominations would not only affect the local mobile markets sectors but also their

controlling the market will have an impact on government raise money mainly from

taxes on individuals and businesses. Government direct taxes on the income of

businesses and indirect taxes on spending would be affected because individual

taxpayers that government collect money from have got lower disposable income and

they have less money to spend and save. Small mobile market sectors have hardly

chances to selling their products and individuals who have been employed within local

small mobile market sectors are losing their jobs as well.

So, let the UK government sees this regardless of consumers or customers to be its

most collective concerned and share this big issue with the UK trading regulatory

authority in order for them to protect the UK population from inappropriate issues,

examples, government must make sure that small mobile operators have balance

economic efficient and as well as consumer welfare protection. Government should put

restriction rules that protect mobile users from risk perception in relation to

electromagnetic fields that might be used by mobile users, and small mobile operators

should also be protected from those who are unfairly dominating the mobile market.

Orange and T-mobile operation in the UK do not mean benefits, but they are hoping to

cut up the market stability rather than promoting the welfare for the society living in the

UK. Their growth have been seen as beneficiaries to the people across the UK but also

increasing small mobile operators concern about business activities declines and that

brought mistrust. So, the UK government and the office of fair trading as a whole should

not sacrifice this. The government must carry on to dealing with matter that the users

suffering the most from the joined two companies mobile operators. Orange is just

exploiting the UK mobile sectors and makes its intention to gaining its own profitability

on behalf of its France telecom. The joined two companies have 84% of the highly

important 1800 megahertz spectrum band and this benefits only between Orange andT-mobile and tactic on the market do not necessary means that the two companies are

having cheaper price planned for customers but more likely they are providing break-

down to existing mobile sector in the UK, and much needed benefits return to the

Franch and Germany parent companies. Orange and T-mobile in the UK have led into

many thousands of job cuts in the short-medium terms. So, government and office of


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fair trading in the UK must intervene to proving limitations on the amount of spectrum

each operator can own in the UK, and also make sure that they set a deal with the

joined two company operators to ensure that the spectrum bands have shared fairly,

and providing broadband access to all homes or businesses and do what the UK

community expected out from their services.

The Orange and T-mobile merger will have an impact on consumer, companies, and

competition in the mobile marketing and all changes will not be positive for customers

and working places. Example, higher competition may regardless infant company

network and smaller companies will never feel comfortable with Orange and T-mobile

dominate in the UK mobile market sectors. The local smaller mobile market operators

will face difficult situation for their saving and for their operating. On the other hand

cultural difference between the two companies will influence their long operation within

the two joined and local customers or consumers as their businesses go on.

In conclusion: Government must find ways to protect consumers or customers, protect

environments and local small mobile market sectors from being exploited by Orange

and T-mobile dominations.

References:

Http://news.bbc.co.uk/1/hi/business/8243226.stm

www.bbc.co.uk/news/technology-11199786.

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