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Optus has called to block the proposed TPG-Telstra merger in a submission to the Australian Competition & Consumer Commission (ACCC).
According to Optus, the market structure will be more clearly defined by a monopolistic provider if the acquisition goes through.
The telco said the deal threatened its future investments in regional Australia, which it said were already under threat.
Optus also claimed that the deal should be rejected based solely on the conditions on spectrum sharing.
Optus said, “Telstra will have the ability to offer a 5G speed up to 10 times faster than Optus could offer given the spectrum imbalance.”
The Australian operator also criticized the deal’s provisions, characterizing them as unfairly favoring Telstra.
Optus said TPG would lose the ability to differentiate on service quality or any network-related characteristics by not having its own infrastructure in regional Australia.
“Twisting the facts”
James Rickards, general manager of external affairs at TPG Telecom, retaliated by accusing Optus of “twisting the facts.”
Rickards supported TPG’s ability to gain total market share, including from Telstra itself, by utilizing the Telstra network.
According to Rickards, TPG’s main goal for the transaction is to expand its network to compete with the telcos for subscribers and further enable all mobile users to gain from more options and competition.
The TPG GM further said, “Optus is afraid of having its regional duopoly exposed to the forces of competition for the first time.”
On the other hand, a Telstra spokesperson accused Optus of opposing the deal with “self-interest” as its only motivation.
The spokesperson said Optus would instead protect its own position than support an innovative deal to provide more capacity and competition in regional Australia.
Telstra and TPG agreed to team up in February to expand network coverage throughout regional Australia.
The announcement was made shortly after the publication of the 2021 Regional Telecommunications Review, which highlighted significant issues with regional Australia’s telco infrastructure.
The review noted that the pandemic put tremendous demand on the existing regional infrastructure, and the bushfires between 2019 and 2020 produced severe pressure on networks in regional Australia.
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Jaw de Guzman is the content producer for Comms Room, a knowledge platform and website aimed at assisting the communications industry and its professionals.
