Singtel warns on Telstra TPG deal
In a letter to the competition regulator, Singtel warned that a deal between its rivals, including Telstra and TPG Telecom, could create a 5G monopoly in regional areas.
Singapore Telecommunications (SingTel) said the deal between Telstra and TPG highlights the lack of interest in investing in Australia’s regional markets. It also allows the latter to bypass competition rules.
The deal undermines Australia’s competition policy by removing a competitor from the market and seriously affecting the operations of local rival Optus, a Singtel official said.
The company urged the ACCC to block the deal, which it said would benefit regional Australians.
The two companies signed a 10-year deal last month to share mobile infrastructure. Both TPG and Telstra noted that the agreement will boost their revenues.
Under the deal, which was approved by the two parties, TPG will be able to access 3700 mobile towers operated by Telstra in regional and urban areas. It will also decommission about 700 sites it currently operates in these regions.
Telstra noted that the company’s agreement with TPG will allow it to provide the same level of network coverage to its virtual network operators. It will also gain access to the latter’s spectrum holdings.
The deal is expected to generate around $1.6 billion to $1.8 billion in revenue for both parties over the next 10 years.
Regional communities have the option to rely on an alternative network provider if their traditional phone company goes down due to natural disasters or power failure. However, the partnership between Telstra and TPG could put this at risk, the Australian Communications and Media Authority warned.
The proposed partnership between the two companies has been criticized by regional communities and government officials. It would create a dominant force in the country’s telecommunications industry.
The ACCC has 90 days to decide whether to approve or reject the deal. Before he left his position, Rod Sims, the former head of the competition regulator, raised concerns about the deal’s impact on prices.
The deal will allow the company to offer 5G services in regional Australia. It will be the second-largest network provider in the country after Telstra.
This agreement is different from other roaming arrangements because it involves sharing the company’s infrastructure and spectrum. It will allow regional customers to have more choice when it comes to network coverage and services.
The partnership between the two companies will also allow regional Australians to get more choice and lower their mobile network congestion. It will also allow them to enjoy faster speeds and better network coverage.
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