Deutsche Telekom and France Telecom, guardians to T-Mobile UK and Orange UK have finally signed an agreement to combine their British units. Two months after both companies announced the plan. "Deutsche Telekom and France Telecom have committed themselves to a long-term partnership with this joint venture contract," Telekom's finance chief Timotheus Hoettges said in a statement.

The companies hope to get approval by mid-2010 for the joint venture that would surge them to the top spot in network rankings in the UK. The combined market share of 37 percent is far more than either Vodafone’s or O2’s, which currently control 27 and 25 percent respectively.

For now both companies will stay as Orange and T-Mobile UK, after 18 months they will then refer to shareholders on the next move. It has been estimated that the joint venture between the telecom groups will create savings of more than £3.5 billion pounds.

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