Deutsche Telekom’s T-Mobile and France Telcom’s Orange have announced Tuesday that they plan to merge the two mobile phone carriers, making them the largest carrier in the U.K. once combined. Currently T-Mobile and Orange are the 3rd and 4th largest mobile operations in Britain behind O2 and Vodafone. The merger would launch the combined companies into the number one spot with 28.4 million mobile phone users and a 37 percent market share, leaving O2 trailing with 27 percent and Vodafone 3rd with 25 percent of the mobile market in Britain.

The merger involves plans to maintain their own distinct brands for the first year and a half and then agree on one common brand which could be one of the two existing or something completely new. The two companies will also start streamlining their operations by eliminating overlapping administration, retail stores and base stations with lay-offs likely in the near future.

In anticipation of a new iPhone model coming to Germany, T-Mobile has drastically slashed the price of the existing 8GB model from €399 to just €99 for German customers. This lower price equates to approximately $155 USD, where the 8GB iPhone is currently going for $399 with a 2 year contract in the United States.

The €99 iPhone is being offered for a limited time from April 7 through June 30 and comes with a 2 year plan for 89 euros a month. The 16GB model price appears to remain untouched with a price of €499. Apple has been rumored to have a new, faster 3G version of the iPhone in the works and this promotion may be a way to unload some of the older models prior to the launch. Alternatively it could also just be a promotion for Apple and T-Mobile to unload some of their inventory due to poor sales of the iPhone in the area due to the heavy competition of mobile handsets that are 3G enabled.

According to a recent report from Rheinische Post, Apple has just signed a deal with Deutsche Telekom T-Mobile to make Germany the next stop for an iPhone launch on November 1 of this year. The report is a preview to an alleged announcement planned for tomorrow where T-Mobile will be unveiled as the exclusive provider of the iPhone for Germany, selling the famed gadget for about 450 euros ($612).

While no sources of the news were cited and no comments from the involved parties were made this isn’t really set in stone but we’ll be watching tomorrow for an official word.

Source: Reuters