Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Commission clears Vodafone’s purchase of TelstraClear

Commission clears Vodafone’s purchase of TelstraClear

The Commerce Commission has cleared Vodafone New Zealand’s proposed purchase of TelstraClear Limited.

In assessing the clearance application, the Commission looked at the potential impact of the purchase in a number of markets. These include the provision of fixed line calling and broadband services to residential, as well as business customers, with a particular focus on small businesses, long distance backhaul services, mobile phone services and spectrum management rights for mobile phone services.

The Commission assessed the extent to which Vodafone and TelstraClear currently compete ‘head to head’ and whether the loss of that rivalry would lead to a substantial lessening of competition, the test under the Commerce Act.

Commerce Commission chair Dr Mark Berry said, “In reaching its decision, the Commission considered that the merged entity would continue to face competition from Telecom, as well as Orcon, Slingshot and other smaller businesses in providing fixed line voice and broadband services to residential and small business customers”.

The Commission did not find any significant business overlap between Vodafone and TelstraClear in the provision of either mobile phone services or fixed line services to large businesses. Finally, Vodafone would not acquire all of the radio spectrum presently owned by TelstraClear. Some of the spectrum will be transferred to TelstraClear’s parent, Telstra Corporation, and will be available for purchase by other telecommunications companies.

As a result, the Commission is satisfied that the proposed acquisition would be unlikely to substantially lessen competition in any of the relevant markets,” said Commerce Commission Chair, Dr Mark Berry.

A public version of the full written reasons for the decision will be available as soon as practicable on the Commission‘s website at www.comcom.govt.nz/clearances-register

Background
Vodafone applied for clearance in July to acquire 100% of the shares and/or assets of TelstraClear from Telstra Corporation Limited.

Vodafone is a mobile phone operator in New Zealand and has a nationwide network servicing its mobile retail customers, as well as wholesaling mobile services to other providers. In addition, Vodafone is increasingly offering a range of fixed line services to residential and business customers and is also reselling Sky Television.

TelstraClear offers a range of predominantly fixed line services to residential and business customers throughout New Zealand. In addition to its fixed line products, TelstraClear also offers cable TV, mobile (through a wholesale agreement with Vodafone) and backhaul services.

When considering a proposed merger, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

Backhaul is a generic term used to describe the transport of data between regional and national data aggregation points. Backhaul generally involves carriage of signals by fibre optic cables rather than by copper cables; although it can also be provided by microwave radio.

A fact sheet explaining how the Commission assesses a merger application is available on the Commission’s website: http://www.comcom.govt.nz/merger-assessment/

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news