Singtel’s Optus ‘delighted’ with decision to block Telstra-TPG deal
Michelle Zhu
SINGTEL’s Australian subsidiary Optus said that it “welcomes” the Australian Competition Tribunal’s decision to reject Telstra and TPG Telecom’s proposed network sharing agreement.
On Wednesday (Jun 21), Optus chief executive Kelly Bayer Rosmarin said: “We are delighted that the Tribunal has upheld the ACCC’s (Australian Competition and Consumer Commission) original decision to block this anti-competitive arrangement.”
She hailed the outcome as favourable to Australia’s regional communities, with the view that they would “continue to benefit from competition as Optus reaffirms its commitment to providing Australia’s regional communities with a strong network and great service”.
Shares of Singtel ended Tuesday S$0.02 or 0.8 per cent lower at S$2.51.
ACCC last year rejected the two telco giants’ multi-operator core network agreement, which would have seen Telstra gain access to TPG’s 4G and 5G spectrums.
Such an arrangement would have raised barriers to entry and reduced the incentives and ability of rivals to compete, said ACCC commissioner Liza Carver in December 2022.
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Telstra and TPG more recently announced on the Australian Stock Exchange that they received notice from the Tribunal of their appeal rejection.
In their respective bourse filings, the telco giants said that they would review the Tribunal’s decision in full before deciding on further action.
TPG flagged the possibility of “considering its options for further appeal, including a judicial review in the Federal Court”.
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“We are not giving up on regional Australia, and we will consider our options as well as advocating for policy reform that will deliver greater competition and choice in the regions that need it most,” said TPG chief executive Inaki Berroeta.
Telstra chief executive Vicki Brady called the outcome “disappointing, particularly given the overwhelming support the proposal had received from regional Australia”.
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