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ACCC Green Light For TPG-iiNet Merger Divides Oz Industry

ACCC Green Light For TPG-iiNet Merger Divides Oz Industry

Many have attacked the decision, suggesting that the verdict will remove the most customer-conscious ISP from the scene, reduce the influence of Optus as a virile opponent of Telstra, and see TPG further cutting into the NBN market.

However ACCC chairman Rod Sim stressed that such fears were not justified.

Respected telecommunications commentator Paul Budde said the takeover – yet to be formalised – raised two issues: “a rational one and a sentimental one”.

Budde told CDN the telecoms industry in Australia has become “a utilities industry where size and scale are essential, so there is no other way for TPG and iiNet to survive and thrive than to merge.

“In all reality the majority of customers select their telecoms provider based on price, and the merger will allow the new entity to maintain their highly competitive position (thanks to TPG) in the market, and in the end this is great for competition against Telstra and Optus,” he said.

“So I am all in favour of the merger,” he said. But Budde added: “On the sentimental side, we are going to lose a truly customer-focused telco and an advocate for consumers. (IINet) has been the only one supporting the customers on issues such as content monopolies, copyright, privacy, etc. 

“As none of the others (including TPG) will take such a position, that element of iiNet will truly be missed.