A joint statement from TPG and Telstra regarding Optus’ attempts to block a network sharing deal between the former two telcos has dismissed any objections as sour grapes.
In a submission to the ACCC, the two telcos suggest Optus had the opportunity to strike up a similar deal with TPG, but didn’t do so.
“Optus’ theory of harm is remarkable,” the statement reads.
“An individual competitors’ business case prior to the proposed transaction cannot be the benchmark for competition. Competitors need (and are expected) to adjust their business case in response to unexpected moves by other competitors.”
It also dismisses a perceived threat that Optus would be forced to scale back its 5G investment in regional Australia if Telstra and TPG were to team up.
“In Optus’ case, it has a substantial network in the 17 per cent Regional Coverage Zone, powerful incentives to continue investing in network in the coverage area to maintain its competitiveness in metropolitan areas, and it has a tested investment strategy of incremental investment in regional and rural areas to disrupt consumer perceptions of superior Telstra network coverage.
“Regulators should not accept arguments that Optus would cease investment without considering the underlying incentives of the complainant and the economic basis on which such claims are founded.”
Later on, the telcos get even more blunt.
“Optus lost. Unsurprisingly, it does not like it. Optus now realises it missed its opportunity and wants the ACCC to use this authorisation process to prevent Telstra from competing as a supplier of network sharing in regional Australia in the future – giving Optus another opportunity to force TPG to accept a worse deal for itself and for competition.
“Given the public and vocal concern Optus has expressed about the inability of its business or investment plan to withstand or respond to improved competition from TPG in regional areas, it can be assumed that any Optus deal would not deliver strong, independent TPG mobile services to regional Australia.”
The ACCC will make a decision regarding the deal before the end of the year.
