Vodafone switch on Parramatta 5G sites as ACCC announces it won’t appeal TPG merger

Faster mobile internet is now in reach of more Australians as Vodafone switches on the first of 650 planned 5G sites around the country.

Vodafone has now become the third network to turn on a 5G network in Australia.

Sites have today gone live in Sydney’s west as the consumer watchdog announced it won’t appeal a the telco’s $15 billion merger with TPG.

Vodafone announced at the end of last year it would be rolling out 5G, months after Telstra and Optus made similar announcements.

It’s thought Vodafone had delayed its investment in 5G while it waited to see whether it would be allowed to merge with TPG.

The Australian Competition and Consumer Commission (ACCC) initially opposed that merger because it thought TPG would roll out a fourth mobile network, giving consumers more choice.

It also took issue with the strong market share that Vodafone and TPG had across mobile and fixed-line internet respectively.

The two companies argued they should be allowed to merge so they could better compete with Telstra and Optus, and that strong competition was better than more competition.

The Federal Court eventually agreed last month.

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“Disappointed”: ACCC chair Rod Sims said the Commission was unable to appeal the merger approval. Picture: AAP Image/Joel Carrett

The ACCC confirmed this morning it has no grounds to appeal that decision because it can’t establish any error in the court’s interpretation of the law.

“The ACCC remains disappointed by this outcome, which has closed the door on what we consider was a once in a generation chance for increased competition in the highly concentrated mobile telecommunications market,” ACCC chair Rod Sims said.

“The future state of competition without a merger is uncertain. But we know that competition is lost when incumbents acquire innovative new competitors.

“Despite this outcome, we will continue to oppose mergers that we believe will substantially lessen competition, because it’s our job to protect competition to the benefit of Australian consumers.”

Coinciding with the announcement from the ACCC, Vodafone switched on its first 5G sites in Parramatta on Thursday.

“This is an exciting occasion for us as a business and for our customers – we have worked tirelessly to put our customers at the heart of our 5G plans and we are proud to switch on our first live sites today in Parramatta,” Vodafone chief executive Iñaki Berroeta said.

Vodafone has announced it won’t be charging extra for 5G, which Telstra has previously said it will do from July 1.

Telstra customers will pay an extra $15 a month, those some higher tier plans will have it included.

Optus hasn’t announce any plan to charge extra.

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Vodafone CEO Iñaki Berroeta said Thursday’s 5G announcement was an “exciting occasion” for the company. Picture: Adam Yip

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Vodafone will also extend the jewel in its product-offering crown to 5G, with $5 a day international roaming on 5G to be available for customers travelling to the UK, Italy, Spain, Germany and Ireland to start with.

Vodafone said the list of countries will expand in the future.

“In the coming months, we will be leading international roaming into the next generation of mobile technology by combining the great value of our $5 Roaming product with a 5G network experience in five of Australia’s favourite travel destinations,” Mr Berroeta said.

He added that more and more sites around Australia will soon be able to access the 5G Vodafone network.

“Throughout 2020 our customers will see us deliver 5G coverage to more areas; with more 5G devices to choose from; while delivering the great value that Vodafone is known for. We have more than 650 5G sites in planning, with thousands more on our road map over coming years.”

Rural Australians and those in smaller capitals will of course be waiting much longer than their metropolitan counterparts to access the new mobile network.

Sites are currently planned only for Sydney, Melbourne, Brisbane, Adelaide, Perth, and Canberra.

You’ll likely need to buy a new phone in order to use 5G as devices supporting the network have only recently become widely available.