Exam-style questions In 2010, T-Mobile and Orange merged to become one telecommunications company. After the merger, customers of Orange and T-Mobile could switch between networks and the combined firm was able to reduce the number of aerial masts required and had an increased share of the market. The two brands are owned by a company called Everything Everywhere, which in September 2012 changed its name to EE. EE provides 4G services to its customers and T-Mobile and Orange continue to serve their own segments of the market. T-Mobile is considered to be a value-for-money brand and Orange a more premium brand. Explain one type of economy of scale which could be achieved by the merger between T-Mobile and Orange.
Explain two diseconomies of scale which may arise in the future.
Discuss the advantages and disadvantages of the merger between the two telecommunication firms.