Saturday, 02 March 2019 04:42

ACCC final word on TPG-Vodafone merger delayed again Featured

By
ACCC final word on TPG-Vodafone merger delayed again Pixabay

The Australian Competition and Consumer Commission has extended the date for giving its final verdict on the proposed merger between Vodafone Hutchison Australia and TPG Telecom, with the watchdog saying on Thursday that the timeline was now suspended.

In an update on its website, the ACCC said the date was uncertain as it was still receiving information from the two companies. A new provisional date would be confirmed once all information had come to hand and been assessed, it added.

In January, the ACCC had said it would be extending the date for a final decision from 28 March to 11 April.

Vodafone Hutchison Australia and TPG Telecom announced a merger of equals on 30 August 2018, with the scrip deal creating a company with an enterprise value of about $15 billion.

In a preliminary statement on the merger, the ACCC said on 13 December 2018 that removing TPG, which it viewed as being on the way to becoming a fourth mobile competitor in Australia, from the fray would substantially lessen competition in the sector.

“Our preliminary view is that TPG is currently on track to become the fourth mobile network operator in Australia, and as such it’s likely to be an aggressive competitor,” ACCC chair Rod Sims said at the time.

“We therefore have preliminary concerns that removing TPG as a new independent competitor with its own network, in what is a concentrated market for mobile services, would be likely to result in a substantial lessening of competition.

"If TPG remains separate from Vodafone, it appears likely to need to continue to adopt an aggressive pricing strategy, offering cheap mobile plans with large data allowances.”

The ACCC also said that it would also look at the longer-term impact of the proposed merger, given that there was likely to be increased take-up of mobile broadband services rather than fixed home broadband services in future, especially after 5G was rolled out.

Following that, TPG announced in January that it was cancelling the rollout of its mobile network due to the Australian Government's ban on the use of equipment from Chinese telecommunication equipment vendor Huawei Technologies.

And recently, TPG said it would be making a write-down of $76 million with regards to its mobile network assets due to the cancellation of the rollout.

Read 8420 times

Please join our community here and become a VIP.

Subscribe to ITWIRE UPDATE Newsletter here
JOIN our iTWireTV our YouTube Community here
BACK TO LATEST NEWS here




IDC WHITE PAPER: The Business Value of Aiven Data Cloud Solutions

According to IDC, Aiven enables your teams to perform more efficiently, reduce direct infrastructure costs, and provide improved database performance, agility and scalability.

Find out how Aiven makes teams 48% more efficient, allowing staff to focus on high-value activities that drive real business results:

340% 3-year ROI – break even in 5 months (average)

37% lower 3-year cost of operations

78% reduction in staff time for database deployments


Download the IDC White Paper now

DOWNLOAD WHITE PAPER!

PROMOTE YOUR WEBINAR ON ITWIRE

It's all about Webinars.

Marketing budgets are now focused on Webinars combined with Lead Generation.

If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site itwire.com and prominent Newsletter promotion https://itwire.com/itwire-update.html and Promotional News & Editorial. Plus a video interview of the key speaker on iTWire TV https://www.youtube.com/c/iTWireTV/videos which will be used in Promotional Posts on the iTWire Home Page.

Now we are coming out of Lockdown iTWire will be focussed to assisting with your webinars and campaigns and assistance via part payments and extended terms, a Webinar Business Booster Pack and other supportive programs. We can also create your adverts and written content plus coordinate your video interview.

We look forward to discussing your campaign goals with you. Please click the button below.

MORE INFO HERE!

BACK TO HOME PAGE
Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

Share News tips for the iTWire Journalists? Your tip will be anonymous

Subscribe to Newsletter

*  Enter the security code shown:

WEBINARS & EVENTS

CYBERSECURITY

PEOPLE MOVES

GUEST ARTICLES

Guest Opinion

ITWIRETV & INTERVIEWS

RESEARCH & CASE STUDIES

Channel News

Comments