Kangaroos fleeing fires: Imagery Optus wants ACCC to consider when dumping TPG-Telstra deal

TPG and Telstra, seeking a $1.8bn network sharing arrangement, have attacked what they describe as embarrassing behaviour by rival Optus, which wants the regulator to nix their deal.

TPG Telecom and Telstra allege rival Optus is scaremongering and being emotional manipulative in its bid to stop a proposed $1.8bn network sharing deal.

That claim has been made in a submission lodged with the Australian Competition and Consumer Commission in which the two companies say there is “overwhelming support” for the deal.

TPG said in a statement that competitors including Optus, ATN and Commpete could not prove that the deal would detrimentally affect competition.

The ASX-listed telco said that stakeholders including the National Australia Bank, the Canberra Chamber of Commerce and Charles Sturt University, had provided submissions in approval of the deal. “Contrary to the assertions of Optus, this is not a merger,” TPG executive James Rickards said in a statement.

TPG Telecom chief executive Inaki Berroeta. Picture: Adam Yip

“To suggest otherwise is an attempt to mislead the public, industry and key stakeholders in the hope of creating controversy where none exists. This is an infrastructure sharing agreement in the interests of all Australians.

“Similarly, statements regarding the arrangements for pooling of spectrum in the shared network have seemingly been twisted intentionally.”

Mr Rickards added that he was surprised by Optus’ suggestion customers would be more vulnerable during natural disasters.

Part of Optus’ response to the proposed Telstra-TPG arrangement.

Optus executive Gladys Berejiklian, the former NSW premier, wrote in recent a blog post: “I have witnessed first-hand the devastating impact of floods and fires on our regional communities”.

“Our regions need more … investment, better connectivity and improved services – and the proposed Telstra/TPG network merger is a very big step backward,” Ms Berejiklian wrote.

Optus wants the regulator to stop the deal – which would result in TPG sharing 3700 of Telstra’s 11,000 towers, and give Telstra access to TPG’s low-band mobile spectrum. TPG would pay Telstra between $1.6bn and $1.8bn over 10 years for the access.

The ACCC has completed a consultation and will make a ruling on the merger in October. A spokeswoman for Communications Minister Michelle Rowland has said the government was continuing to monitor developments.

On Thursday, Mr Rickards said Optus had engaged in scaremongering. “This is an insult to regional mobile users who will benefit from the network sharing arrangement,” he said.

Optus chief executive Kelly Bayer-Rosmarin. Picture: Damian Shaw

“With the increased regional coverage available under the arrangement, TPG’s more than five million mobile customers on its Vodafone, TPG, iiNet, Lebara, Kogan and Felix mobile bands will be able to make calls and use their phones in remote areas where they have no connectivity today. It will be a lifeline for those customers when they travel around Australia.

“It is a disappointment to our industry Optus chose to use emotionally manipulative images of kangaroos seeking to escape a bushfire, in an increasingly desperate attempt to stop a competition-enhancing arrangement.”

Optus had called the proposed deal between its two rivals a “regional network merger” that would further enhance Telstra’s already dominant position, leading to lower levels of economic activity and jobs growth for the regions as a result.

Telstra chief executive Andrew Penn: Picture AFP

In its submission to the ACCC, the telco said Telstra enjoyed a national mobile market share of 51 per cent, and close to 70 per cent in the regions.

It said that should the deal proceed, consumers could expect higher prices, lower overall investment, lower network quality, and less choice for regions.

Originally published as Kangaroos fleeing fires: Imagery Optus wants ACCC to consider when dumping TPG-Telstra deal