Telstra calls time out on Adam buyout review

 

Addressing regulatory concerns.

Telecommunications giant Telstra has called time out on the ACCC’s review of its $60 million acquisition of South Australian ISP Adam Internet.

A spokesman for the telco told iTnews that the parties needed "more time" to consider potential issues with the buyout that had been raised by the competition watchdog.

Concerns include that Telstra may offer Adam Internet favourable wholesale pricing in the South Australian market.

"The ACCC's preliminary view is that post acquisition, Telstra would have the ability and incentive to utilise its market power to favour Adam over its wholesale customers in the provision of access to its network infrastructure," the watchdog had warned.

The compeitition watchdog had called for submissions on the proposed buy, and was due to make a final ruling by February 7.

Insiders to the deal said it is still looking positive, but more time is needed to work through the issues.

“We will continue to engage with the ACCC and we’re confident we can work through any concerns in a timely manner," Telstra's spokesman said.

Copyright © iTnews.com.au . All rights reserved.


Telstra calls time out on Adam buyout review
 
 
 
Top Stories
Soft drinks and SoftLayer: A solution for hard times?
Coca-Cola Amatil's CIO Barry Simpson shares his story of cost-cutting, outsourcing and why his software developers to ride around in delivery trucks.
 
Optus considers breaking net neutrality in Australia
May charge Netflix, OTT providers for premium service.
 
AGL restructure sees CIO depart
Owen Coppage to leave after ten years.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Do you support the Government's data retention scheme?

   |   View results
Yes
  11%
 
No
  89%
TOTAL VOTES: 2388

Vote