Deutsche Telekom said the proposed merger and integration of T-Mobile UK with Orange UK should generate synergies with a net present value in excess of 3.5 billion UK pounds (4 billion euros), with operational synergies reaching an annual run rate of 445 million pounds from 2014 onwards.
To achieve these opex synergies, the joint venture would expect to spend 600 to 800 million pounds on integration costs over the period from 2010 to 2014. Those costs would primarily relate to the decommissioning of mobile sites, the rationalisation of the network of retail stores and the streamlining of operations.
Deutsche Telekom also said the potential for capital expenditure savings, net of integration capex, is estimated at 620 million pounds on a cumulative basis over 2010-2014, prior to stabilising at approximately 100 million pounds a year from 2015 onwards. source: Deutsche Telekom statement