But lawyers have raised questions over whether the combined company - which would have more than 29 million customers and a 39 per cent of market revenue - would fall foul of competition regulations. The companies are reportedly considering selling some high-street shops or a small portion of their customer base in a bid to fend off potential issues.
The Week: City News - Phone giants set to merge
Orange and T-Mobile have announced plans to merge in a deal that would create the UK's largest mobile phone company.