Last week, CommsWire reported the ACCC will "not oppose the proposed regional mobile network and spectrum sharing agreements between Optus Mobile and TPG Telecom."

The ACCC found that the agreements are “unlikely to substantially lessen competition.”

“The agreements will allow TPG to provide better coverage in regional areas, which will likely enhance its ability to compete during the term of the agreements, improving choice for regional consumers," ACCC Commissioner Dr Philip Williams said.

Commpete reviewed the structural change to the mobile market and determined the agreements, like the ACCC’s findings, are also unlikely to substantially lessen competition.

On the surface, Commpete said the proposed agreement reflects a “genuine intent of using infrastructure sharing models and affords competition through both retail and wholesale markets.”

“However, the proof will be in the pudding,” commented Commpete executive director (consultant) Michelle Lim. 

Lim issued a statement on the approval:

“Commpete remains concerned there is no clarity on whether the combined spectrum holdings exceed the spectrum auction limits imposed by Ministerial determination, and consequently if certain spectrum should reasonably be divested for use by other market participants.”

“There ought to be transparency – irrespective of whether a divestment is considered through this transaction, or policy and regulatory processes aimed at promoting competition for mobile services in the regions, as suggested by the ACCC.”

“Further, the new merger law proposes the concept of ‘serial or creeping mergers’ which assesses the cumulative effect on competition of a firm’s current merger and future acquisitions over three years. Commpete welcomes these future safeguards.”

“They would provide more certainty for all, in a future which is always uncertain.”

“Nationally licenced spectrum is typically only used in one-third of Australia’s landmass, with the remaining two-thirds lying fallow. This is despite the potential for more targeted and innovative solutions utilising that spectrum to deliver services to the likes of mining, agriculture, and first nations communities, delivering enhanced social and economic benefits in these areas.”

“Commpete also cautions the proposed agreement may give mobile network operators (MNOs) stronger incentives to restrict terms of wholesale access for mobile virtual network operators (MVNO) and challenger mobile networks.”

There is also no guarantee that TPG wholesale customers will benefit from extended geographical reach on fair terms, and therefore Commpete supports the ACCC’s intention to continue monitoring under the new market structure.”

“The regulatory, technical, and commercial debate over the past few years has helped define new approaches for regional Australia. This has included detailed analysis of the Telstra and TPG arrangements in 2022, neutral host active sharing and now the Optus and TPG arrangements.

“Further, the new merger reforms propose that substantially lessening competition will explicitly include – 'by creating, strengthening or entrenching a substantial degree of market power in any market.'”

“Commpete welcomes these impending changes to merger law. However, it is less relevant for this arrangement, because for example, absent the involvement of Telstra, the detriments are of lesser magnitude.”

“There is still much to be done for regional, rural, and remote Australia. Each is not the same, nor is each best serviced via a one-size-fits-all approach. However, Commpete feels this is another positive development for our national telco puzzle which can move the industry in a better direction."

“Commpete advocates a diverse mobile communications sector which affords an opportunity for challenger and dominant mobile operators, new innovative and entrepreneurial niche players, MVNOs, neutral host infrastructure providers, cloud, satellite, and wireless providers to invest and deliver more to customers.”