The planned network sharing agreement between Telstra and TPG Telecom has been stopped by Australia’s competition authority.
The telcos’ flurry of late filings failed to persuade the ACCC that the agreement would benefit customers and have no negative effects.
In February, Telstra and TPG Telecom made a proposal to potentially share airwaves and cellular infrastructure for decades in remote Australia.
The proposed arrangements were thoroughly investigated, according to ACCC commissioner Liza Carver.
In public declarations, Telstra and TPG Telecom both expressed dissatisfaction.
Vicki Brady, CEO of Telstra, described the decision as “very disappointing,” especially in light of the resounding support that regional customers and community organisations who took part in the consultation process gave the idea.
For the residents, companies, and communities of regional Australia, she said, “this decision is a significant squandered opportunity.”
“All the people who recognised the benefits this agreement could bring and stood up in favour of it,” Brady said, “are to be appreciated.”
Nevertheless, the ACCC openly discussed potential alternatives to an agreement with Telstra that TPG Telecom might explore throughout that review time.
The possibility that TPG Telecom and Optus may agree to share some network assets was one strategy used to put doubt on the Telstra-TPG alliance.
An agreement with TPG Telecom was referred to as “a real commercial likelihood” by Optus, which is attempting to have the Telstra-TPG transaction stopped.
Days later, it was discovered that a deal with Optus had previously been pursued but that the parties were unable to come to terms. TPG Telecom had first deemed it “unlikely.”
