OFT calls for UK investigation into mobile merger

The merger between T-Mobile and Orange is set for further scrutiny as the Office of Fair Trading (OFT) has requested a UK investigation into the deal.

The proposed merger between the two mobile providers would see them become the biggest company in the sector and the OFT is concerned this could hurt the UK mobile industry.

At the moment, only the European Commission has looked into the agreement.

In a statement on its website, the OFT said: "[Our] initial view, following consultation, is that the joint venture threatens significantly to affect competition in mobile telecommunications in the UK."

"If the request [of a UK investigation] is granted, the OFT intends to examine the proposed joint venture with a view to deciding whether it should be referred to the Competition Commission for an in-depth investigation," it added.

This will be music to the ears of competing mobile providers O2 and 3, which both called for UK authorities to examine the merger.

UK groups Consumer Focus and the Communications Consumer Panel were also insistent that an investigation should take place this side of the Channel and wrote to the European commissioner for competition in December to request it.

Ofcom also asked to be involved in the process in its recent Mobile Evolution report.

A spokesperson from Orange told IT PRO: "We are in close contact with all of the authorities involved, including the OFT and OFCOM. We strongly believe that the proposed merger is good for Britain and will continue to work closely with all interested parties."

We contacted T-Mobile for its reaction to these demands but it had not responded to our request for comment at the time of publication.