Everything Everywhere Could Unify Orange and T-Mobile Brands
Everything Everywhere is investigating the possibility of phasing out its existing brands
Everything Everywhere, the UK’s largest network by subscribers, could phase out either its Orange or T-Mobile brands in favour of a new name for its services.
The move would save millions of pounds a year for its parent companies Deutsche Telekom and France Telecom, with new branding possibly in place by the end of 2012.
There had been rumours that the T-Mobile name would be dropped in favour of the Orange brand by Everything Everywhere, the company formed by the merger of the two networks, but that has proved difficult given the attachment that both parent companies feel towards their respective brands.
However a prospectus issued [PDF] by Everything Everywhere relating to a bond issue has revealed that a branding review carried out last year investigated the possibility of a new operating name.
“The Group has completed a review of its branding strategy for the future, and has considered a range of options,” stated the prospectus. “At this time, the Group will continue to maintain and invest in both of its existing brands, Orange and T-Mobile. The development of an additional or new brand is an option under consideration, which may be complementary to or in substitution for one or both of the existing brands of T-Mobile and Orange. The Group is continuing to assess such an option.”
The Times estimates that the cost of switching 27 million customers and services, including Orange Wednesdays, to a new brand could be similar to the £80m spent to replace the Norwich Union and CGU brands with Aviva.
A new brand would represent a more formal integration of Orange and T-Mobile’s services following their merger in July 2010. Last week, Everything Everywhere announced that it was to sell up to 25 percent of its spectrum as part of the deal which saw the merger receive approval from the European Commission.
The auction could raise up to £400 million for Everything Everywhere, which has pledged to reinvest into its network as part of a £1.5 billion investment to improve its services ahead of the arrival of 4G in the UK, rather than paying back its parent companies.