Telstra Group (TLS. AX) and TPG Telecom (TPG. AX) have decided not to appeal the Australian Competition Tribunal’s December decision to block their proposed transfer of assets. Had the deal gone through, Telstra would have purchased TPG’s spectrum and transmission towers, while TPG would have kept selling 4G and 5G coverage using Telstra’s infrastructure.
The Australian Competition and Consumer Commission originally blocked the proposed asset transfer due to concerns over competition and the potential impact on the no. 2 wireless internet provider Optus, owned by Singapore Telecommunications (STEL. SI).
Neither Telstra Group nor TPG Telecom provided any details or comments regarding their choice not to appeal the tribunal’s ruling in exchange filings. According to Sameer Manekar of Reuters, Telstra had not responded to a request for further information.
Nevertheless, TPG Telecom articulated their determination to find other ways to expand their mobile network. “We will now continue to explore economic options to expand our existing mobile network,” TPG Telecom stated.
The Competition Tribunal’s decision is sure to have wide-reaching ramifications as both Telstra Group and TPG Telecom explore alternative means to expand their services and market share.