Management Consulting
AlixPartners
Full Credential Description
Optus, the second-largest mobile network operator in Australia, faced a significant challenge regarding proposed network and spectrum sharing arrangements between Telstra and TPG, the first and third largest mobile network operators, respectively. The concern was that these arrangements would lead to TPG decommissioning its network across a large portion of Australia, thereby relying solely on Telstra's network services. This situation raised alarms about a potential substantial lessening of competition in both retail and wholesale mobile telecom markets.
To address this issue, expert evidence was provided to the Australian Competition and Consumer Commission (ACCC) on behalf of Optus. The reports submitted detailed how the proposed arrangements would weaken competition at the network level, ultimately harming the market dynamics. The ACCC, upon reviewing the evidence, concluded that the arrangements would indeed lead to a substantial lessening of competition and found no net public benefit. Consequently, the ACCC decided not to authorize the proposed network sharing arrangements.
Following this determination, Telstra and TPG appealed the ACCC's decision. However, the Australian Competition Tribunal upheld the ACCC's findings, affirming that the proposed spectrum sharing arrangements would negatively impact competition in the telecommunications sector. This outcome not only protected the competitive landscape but also reinforced the importance of maintaining multiple network operators in the market to ensure consumer choice and fair pricing.