By Jonathan Davies

Telecoms giants BT has agreed to buy the UK's biggest mobile network provider EE for £12.5bn.

The deal had been in the pipeline for a number of weeks with exclusive negotiations taking place between the two.

As part of the deal, Deutsch Telekom will receive a 12% stake and will be allowed to appoint one non-executive board member. Orange will take a 4% share.

The deal brings BT one step closer to completing it's goal to offer all four services - land line, broadband, TV and mobile.

It said in a statement: "The combination of EE and BT will provide customers with innovative, seamless services that combine the power of fibre broadband with wi-fi and advanced mobile capabilities.

EE has roughly 7.7 million customers in the UK.

Market analysts have suggested that a competition inquiry could be launched into the mobile network industry. With BT set to buy EE and Three in talks to buy O2, it would leave just three mobile network providers in the UK, along with Vodafone. Analysts have suggested that this is not good for competition and could raise prices.

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