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- The Australian Competition and Consumer Commission (ACCC) rejects a network-sharing deal between Telstra (TLS) and TPG Telcom (TPG)
- The ACCC says the proposed deal would substantially lessen competition, and the public detriments from the arrangement will outweigh public benefits
- Telstra will appeal the decision, which CEO Vicki Brady says is “extremely disappointing” and “a massive missed opportunity” for regional Australia.
- With access to Telstra’s mobile sites, TPG’s current 4G coverage would increase from 96 per cent to 98.8 per cent of the population
- Shares in Telstra closed 0.5 per cent lower at $4.02 and TPG shares closed 1.05 per cent lower at $4.72 on Wednesday afternoon
The Australian Competition and Consumer Commission (ACCC) has rejected a network-sharing deal between Telstra (TLS) and TPG Telcom (TPG)
The ACCC said the proposed deal would substantially lessen competition, and the public detriments from the arrangement would outweigh public benefits, citing potential negative impacts on coverage, network quality and innovation.
“Entering into the arrangements proposed by Telstra and TPG will represent a significant change to the structure of the market that would have long-term consequences,” ACCC Commissioner Liza Carver said.
“Mobile networks are of critical importance to many aspects of our lives, including our livelihood, our well-being and our ability to keep in touch with friends and family,” Ms Carver said.
“Any reduction in competition will have very wide-ranging impacts on customers, including higher prices and reduced quality and coverage.”
Telstra will appeal the decision, which CEO Vicki Brady said was “extremely disappointing” and “a massive missed opportunity” for the people, businesses and communities of regional Australia.
Telstra expressed its extreme disappointment in response to the ACCC decision, with CEO Vicki Brady calling it a massive missed opportunity for the people, businesses and communities of regional Australia.
She also mentioned that the deal received overwhelming support from regional customers and community groups who participated in the consultation process.
“Despite today’s disappointing news, I’d like to thank all the people who recognised the benefits this agreement could bring and spoke up in favour of it. We will keep pushing for the right outcome for you,” Ms Brady said.
The ten-year regional commercial agreement would TPG Telecom’s 4G and 5G coverage in regional Australia and Telstra’s wholesale mobile revenue.
Under the multi-operator core network agreement, TPG would have access to around 3700 Telstra mobile network assets. In return, Telstra could receive up to $1.8 billion in revenue.
With access to Telstra’s mobile sites, TPG’s current 4G coverage would increase from 96 per cent to 98.8 per cent of the population.
Shares in Telstra closed 0.5 per cent lower at $4.02 and TPG shares closed 1.05 per cent lower at $4.72 on Wednesday afternoon.
