iTnews

Vocus' Nextgen buyout cleared by ACCC

By Ry Crozier on Sep 22, 2016 9:27AM
Vocus' Nextgen buyout cleared by ACCC

But watchdog promises even closer scrutiny of future deals.

The ACCC has cleared Vocus’ $861 million acquisition of Nextgen Networks but warned it will closely scrutinise any proposed future consolidation in the telecommunications sector.

The competition watchdog’s chairman Rod Sims said that the market had “expressed very little concern” over the combination of Vocus and Nextgen.

The ACCC itself found the two offered largely “complementary” services and believed competitive tension in the market would “limit any harm to competition”.

“In assessing this potential transaction, we took into account that Nextgen is the only remaining significant supplier of wholesale transmission services that isn’t vertically integrated,” Sims said in a statement.

“This possible acquisition has come under close scrutiny due to that fact, as I have said in the past that it would.

“What the ACCC really had to consider here was whether the acquisition has the potential to make it harder for smaller broadband providers to compete if they have to acquire wholesale services from competitors that are vertically integrated.”

Sims said that small players had indicated they “are not generally reliant on Nextgen to be able to compete”.

The removal of regulatory hurdles should clear the path for Vocus to complete its buyout of Nextgen’s substantial terrestrial dark fibre network and subsea cable projects.

Sims said that while the combination of Vocus and Nextgen “did not raise concerns”, the telco industry generally showed the effects of “recent consolidation and increased vertical integration”, and would therefore attract the ACCC’s close future attention.

“The four largest retail service providers – Telstra, Optus, TPG and Vocus – supply over 90 percent of broadband services in Australia,” Sims said.

“Any future potential mergers or acquisitions that increase concentration can expect to receive close examination from the ACCC.”

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © iTnews.com.au . All rights reserved.
Tags:
accc approval nextgen regulatory telco/isp vocus

Partner Content

Why companies fail at picking cloud modernisation partners
Promoted Content Why companies fail at picking cloud modernisation partners
As Australian companies lean more heavily on the cloud, edge security is finding its stride
Partner Content As Australian companies lean more heavily on the cloud, edge security is finding its stride
Improving returns from SD-WAN spending
Partner Content Improving returns from SD-WAN spending
Resetting cyber security for the new threat landscape
Partner Content Resetting cyber security for the new threat landscape

Sponsored Whitepapers

Encryption: Protect your most critical data
Encryption: Protect your most critical data
Overcoming data security challenges in a hybrid, multicloud world
Overcoming data security challenges in a hybrid, multicloud world
Move beyond passwords
Move beyond passwords
The top 5 tech trends to deliver business outcomes
The top 5 tech trends to deliver business outcomes
10 reasons why businesses need to invest in cloud security training
10 reasons why businesses need to invest in cloud security training

Events

  • On-Demand Webinar: How Poly and Microsoft are Embracing Future Work Environments
By Ry Crozier
Sep 22 2016
9:27AM
0 Comments

Related Articles

  • NBN Co wants a public test of how well it matches up with 5G
  • Vocus receives $3.4 billion non-binding offer from MIRA
  • Macquarie Telecom reclaims its spot as tech's top political donor
  • Telstra blasts plan to 'set aside' mobile spectrum for Optus and TPG, but not it
Share on Twitter Share on Facebook Share on LinkedIn Share on Whatsapp Email A Friend

Most Read Articles

TPG Telecom to start enticing NBN customers to move

TPG Telecom to start enticing NBN customers to move

Infosys scores another $40m for Centrelink payments engine build

Infosys scores another $40m for Centrelink payments engine build

Telstra InfraCo opens up telco's own fibre network

Telstra InfraCo opens up telco's own fibre network

Transport for NSW data stolen in Accellion breach

Transport for NSW data stolen in Accellion breach

You must be a registered member of iTnews to post a comment.
Log In | Register
All rights reserved. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation.
Your use of this website constitutes acceptance of nextmedia's Privacy Policy and Terms & Conditions.