- The ACCC is seeking further views in regards to the Telstra (TLS) and TPG Telecom (TPG) mobile network deal
- The companies struck three agreements in May, which would see Telstra obtain much of TPG’s mobile spectrum in certain regional and urban fringe areas
- Authorisation for the deal will only be granted if it is not likely to substantially reduce competition, or if the public benefits outweigh the costs
- The final decision is expected to be made in early December
- TLS shares are trading 0.52 per cent lower at $3.86 while TPG shares fell 0.10 per cent to $4.89 at 3:41 pm AEST
The ACCC is seeking further views in regards to the Telstra (TLS) and TPG Telecom (TPG) mobile network deal.
The companies struck three agreements in May, which would see Telstra obtain much of TPG’s mobile spectrum in certain regional and urban fringe areas.
Additionally, Telstra would obtain 169 of TPG’s mobile sites in those areas, while the remaining 556 mobiles sites would be shut down as TPG acquires mobile network services from Telstra for mobile coverage.
ACCC Commissioner Liza Carver said it is calling for further views from the industry and consumers on how the arrangement may impact competition.
“We are assessing how the proposed infrastructure and spectrum arrangements between TPG and Telstra will change the incentives and ability of Telstra, TPG, Optus, and other market participants to compete and to invest in mobile service infrastructure,” she said.
“There is still a lot of work to do on this complicated and nuanced review, which is of critical importance to competition in the mobile telecommunication sector.”
Authorisation for the deal will only be granted if it is not likely to substantially reduce competition, or if the public benefits outweigh the costs.
The final decision is expected to be made in early December.
TLS shares were trading 0.52 per cent lower at $3.86 while TPG shares fell 0.10 per cent to $4.89 at 3:41 pm AEST.