Thursday, 2 April 2009

ACCC uncomfortable with Vodafone-Hutchison merger

Would this merger lead to higher prices, or provide a real competitor to Telstra and Optus?

I am not convinced that allowing the merger between Vodafone and Hutchison will be necessarily bad for the mobile telephony sector. Throughout the history of telecommunications, larger firms enabled better network coverage and coordination - three major competitors is surely better than two competitors on different tiers within the sector?

Maybe things have changed, but I remember ditching Vodafone and other smaller providers because their coverage was simply second-rate. I am not advocating this merger, but neither am I convinced that such a merger will necessarily lead to higher prices... it might even set the scene for other niche providers to merge as a fourth competitor. It will be interesting to see the response from Telstra and Optus.

Read more on the IT News article below...


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