Orange and T Mobile will merge their British companies in a move that will launch them into the top spot in the UK market, with more than 28 million customers and a 37% market share. At the minute the two companies are third and fourth in the mobile rankings, but the deal will see rivals O2 and Vodafone fall to second and third behind the new team.

Ernest Duke of mobile phone price comparison site Omnio.com said, the deal ‘makes simple business sense’ While O2 and Vodafone have the money to lure customers, T-Mobile UK and Orange both needed a boost to secure headline grabbing mobile phone deals.

Orange and T Mobile said the move will bring "substantial benefits" to UK consumers, expanding network coverage and enhancing indoor and outdoor network quality for both 2G and 3G services.

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