Mobile phone firms to merge

A UK mobile phone giant is to be formed by a merger between Orange and T-Mobile, it has been announced.

T-Mobile owner Deutsche Telekom has agreed to merge their UK business with France Telecom's Orange to create one firm with more than 28 million customers.

Orange employs 12,500 in the UK, while T-Mobile has a 6,500-strong UK workforce.

The two parties said their deal would "bring substantial benefits to UK customers", promising expanded network coverage, better network quality and improved customer services.

The tie-up will form the UK's biggest mobile phone operator with a market share of around 37%, the pair said.

The deal comes after Deutsche Telekom had been considering an outright sale of its T-Mobile business in the UK.