Deutsche Telekom and France Telecom today announce that they have entered into exclusive negotiations to combine T-Mobile UK and Orange UK in a new 50:50 joint venture company.

The new joint venture will create the UK’s leading mobile operator. It will have a combined mobile customer base of around 28.4 million, representing approximately 37 percent of UK mobile subscribers*, based on figures at end December 2008. By integrating Orange’s broadband activities, the joint venture will also have the capabilities to offer convergent solutions to its customers in the future.

The companies claim that the combination of Orange and T-Mobile will bring substantial benefits to UK consumers resulting in expanded network coverage and enhanced indoor and outdoor network quality for 2G and 3G services. The combination will place the joint venture in a better position to invest in innovative new services and to exploit new technologies. The new enlarged business will also be able to compete more effectively with the other two large mobile operators in the market, Vodafone and O2.

What do you think? Good news for mobile customers in the UK - or will fewer larger operators simply result ultimately in less competition? Have your say below!