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Opposition Swells As Decision-Day Nears For TPG-iiNet Merger

Opposition Swells As Decision-Day Nears For TPG-iiNet MergerTPG’s scheme of arrangement was overwhelmingly
accepted by iiNet shareholders three weeks ago, but the proposed deal must
clear the ACCC before going before the Federal Court for final approval.

If approved, the merged group would score an estimated 27 percent of
Australia’s fixed broadband market, making it the No.2 operator behind Telstra
on 41 percent and ahead of Optus at 14 percent.

ACCC chairman Rod Sims was giving nothing away yesterday but he did say the
majority of submissions on the deal had been against it.

Many iiNet users and rivals telcos have opposed the merger,
citing competition concerns and fears about service quality, though TPG’s David
Teoh has promised to maintain high levels of customer service.

More than 100 submissions were made in the first wave of public comments. The
ACCC then raised competition concerns and opened a second round of
consultations – most of which opposed the merger.