The TPG Telecom share price has crashed close to 10% as the big telco hangs out for a favourable decision on their hopes to get a network sharing deal with Telstra’s along with access to the carrier’s rural network.

Shares fell $13.3 to $5.74 with the Australian Competition and Consumer Commission still reviewing objections to the proposal from the likes of Optus.

Service revenue came in flat year on year at $2.19 billion, with average revenue per user (ARPU) up 1% to $31.80 per month.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) was down 5.3% year on year to $837 million while net profit after tax (NPAT) was up 114% to $167 million.

What the market did not like was the fact that the 114% growth was due to a tax credit of $86 million resulting in earnings growth within the business being down.

The business did generate a strong increase in mobile subscribers during the half with an increase in users of 135,000 over the six months.

Similarly, fixed wireless subscribers grew by 113,000, putting the company on track for its 160,000 targets for FY22.

The plan to cut a deal with Telstra was released on 21 February if successful it will result in Australia’s two largest telecommunications companies having an advantage over competitors.According to today’s release, the regulatory decision is still with the ACCC, and an outcome is expected on 2 December 2022. If the deal is approved, TPG could see its mobile coverage extended to 98.8% of the population with the help of Telstra.

CEO Iñaki Berroeta claims that TPG is transitioning to a “new phase of growth.” In turn, management plans for earnings momentum to accelerate in the second half.

Additionally, the targeted $125 million to $150 million in merger synergies is said to be on track in 2022.

In contrast to Telstra, the TPG share price has been firing on all cylinders this year.

With a return of 2.9% year-to-date meanwhile Telstra shares are 2.8% worse off than at the end of 2021.