The planned merger between broadband providers Orange and T-Mobile may feel the force of new government regulations, according to a report.

It is expected that new proposals from ministers this week will see a cap placed on the amount of the mobile broadband spectrum that companies in the market can have access to.

The Guardian reports that such a move would mean that a combined T-Mobile and Orange – which would have a 37 per cent share of the market – would have to sell on some of its spectrum share.

It has also been suggested that the Office of Fair Trading may investigate the merger, which has raised some concerns among consumer groups due to its potential impact on competition and choice in the sector.

Plans for the deal were originally announced at the start of September, with both Orange and T-Mobile suggesting it would lead to expanded network coverage and improved quality.