Australian Regulator Seeks Feedback on Vocus-TPG $3.4B Deal

Australia’s competition watchdog has launched a public consultation on the proposed A$5.25 billion ($3.39 billion) acquisition of major fixed-line assets from TPG Telecom by Macquarie-backed telecommunications company Vocus Group, according to Reuters. This acquisition would encompass TPG’s enterprise, government, and wholesale (EG&W) fixed business and fibre network infrastructure, marking a significant reshaping in the Australian telecommunications landscape.

The Australian Competition and Consumer Commission (ACCC) has initiated this consultation to evaluate how the deal could impact the market, specifically focusing on potential changes in pricing and service quality in the fixed-line services sector. Key areas under review include the delivery of voice services, data networks, and connectivity options. The ACCC is soliciting input from stakeholders and other interested parties as part of its assessment of whether the acquisition could alter competitive dynamics or create issues for customers, per Reuters.

Announced by TPG Telecom in October, the deal stipulates that TPG will retain its radio network infrastructure, as well as its mobile, retail, and wireless services. By transferring its EG&W fixed business and fibre assets to Vocus, TPG aims to streamline its operations and focus more on its consumer-facing services.

The ACCC has called on interested parties to submit their comments by December 2, as it prepares to deliver a preliminary assessment of the deal’s competitive impact. A tentative announcement of findings is scheduled for February 13, 2025, giving stakeholders and market participants time to weigh in on the acquisition’s potential consequences.

In a statement provided to Reuters, TPG Telecom expressed its commitment to working closely with the ACCC and Vocus to support a swift and efficient review process. However, Vocus declined to comment on the matter, according to Reuters.

The outcome of the ACCC’s review could shape the future of Australia’s telecommunications sector, particularly in the enterprise and government markets, where fixed-line and fibre network services play an essential role.

Source: Reuters