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Government broadband ruling to impact on T-Mobile and Orange merger

Monday, October 12th 2009 by Cable.co.uk

The government is to introduce new regulations which will impact on the merger between broadband firms T-Mobile and Orange.

Plans that would see broadband firms Orange and T-Mobile merge could be affected by new regulations that are set to be introduced by the government.

Under proposals that are expected to be announced this week, ministers are to place a cap on the amount of the mobile broadband spectrum that companies can have access to.

According to the Guardian, as the planned merger would give T-Mobile and Orange a 37 per cent share of the market, it is likely they will have to sell on some of their share of the airwaves.

Both the Competition Commission and the Office of Fair Trading will be given the task of deciding at what level the cap will be introduced, while the latter is also expected to ask European regulators for permission to investigate the proposed merger.

Plans for the deal between Orange and T-Mobile were first announced at the start of last month.

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