"Orange will merge with T-Mobile UK in a deal that will see the combined company become the largest player in the UK, with 28.4 million customers and a 37 percent market share. And it likely foreshadows more consolidation as the ultra-competitive wireless market moves from 2G to 3G and beyond, forcing operators to invest heavily in upgrading their networks in order to compete.
The move is all about cutting costs in an effort to better compete with O2 and Vodafone, which have 27 and 25 percent of the UK wireless market, respectively."