France Télécom and TDC Give up Swiss Mobile Merger

France Télécom and Danish operator TDC have decided to halt their attempts to merge their Swiss mobile network subsidiaries, they said in a joint statement on Thursday.

The two operators have decided to call off the merger after doing a detailed analysis of their available options, they said, but didn't give any further details.

The merger plans were dealt a heavy blow on April 22, when the Swiss competition agency Comco decided to block the deal. The reason Comco gave was that merger would have left the Swiss market with only two mobile operators with their own networks, and that would remove effective competition in the Swiss market.

France Télécom and TDC were not happy with the decision, saying that the combined company would have been able to offer more attractive prices to Swiss consumers. They first decided to appeal the decision to the Federal Administrative Court, according to a France Télécom spokesman, but that appeal has now been withdrawn, according to the statement.

Elsewhere, France Télécom had better luck. In the U.K. a merger between Orange and Deutsche Telekom subsidiary T-Mobile, was approved on April 1. However, the U.K. market has more competitors than the Swiss one: even after the merger, there are still four U.K. mobile operators with their own network.

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