Vodafone Acknowledges T-Mobile-Orange Merger with More Cuts

Wednesday, November 11th 2009

Vodafone Mobile Broadband AdAs two of United Kingdom’s prominent five mobile broadband providers, Orange and T-Mobile have come to a final agreement over the merger of their UK arms, another mobile network of the famous five, Vodafone has been found assuming a different approach to prop up its declining market share in the country. This is nothing but the intensification of the price reduction programme of the UK ISP.

It has been reported that the giant mobile network that presently reports its earnings, could be increasing the price saving target by fifty per cent by 2011 March. This will take the expected figure to GBP 1.5 billion by the time.

In a report of the London Financial Times that has quoted the broker of Orange UK ISP, Citi that a target was set up by Vodafone that stood to slash the expenses of operation by GBP 1 billion, by 2011 March. The newspaper had been quoting the broker in reporting the targets that were further raised by the operator.

The crucial issues faced by the giant mobile network were mainly the declining margins and share in a few of its core markets, such as Spain and the United Kingdom. Apart from this, the mobile broadband provider was also harried to a great extent by the cut-throat price competition faced by it in India, where it is a bit new to the market relatively.

In the United Kingdom, things do not augur well for Vodafone as once the regulator approves the merger proposal of T-Mobile and Orange, it would be pushed to the third place.

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