Optus has declared a network sharing deal between itself and TPG “at least a real commercial likelihood” in rejection of a similar deal proposed between Telstra and TPG.
Optus maintains that the proposed Telstra-TPG network sharing deal would “significantly strengthen Telstra, giving it an unassailable position” in a number of new submissions to the ACCC.
The ACCC is weighing up which alternative options TPG has available to it, floating the above possibility.
“Optus agrees with the ACCC’s view that Optus and TPG are likely to have commercial incentives to enter into such an arrangement, and has provided evidence concerning each party’s commercial incentives,” the telco said.
“Based on Optus’ evidence, the ACCC should conclude that there is at least a real commercial likelihood of Optus and TPG reaching agreement on such an arrangement in the counterfactual.
Further to this, Optus said it “does not consider there to be any technical issues that would prevent an active network sharing arrangement being entered into with TPG”.
It did admit “any arrangement it would negotiate with TPG is likely to be of less benefit to TPG than TPG’s arrangement with Telstra”, a point it says is “in a sense obvious, given that TPG has preferred a transaction with Telstra”.
“Optus and TPG will continue to face the incentive to compete strongly with Telstra through regional 5G network investments, to the extent it is profitable to make those investments,” Optus said.
Optus has urged the ACCC to ignore the “relative benefit to TPG” and focus on the “competitive outcome” of the decision to allow Telstra to team with TPG.