Australian consumers may never see a fourth player in Australia's mobile market, so are we worse off?

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ANALYSIS: Australian consumers may never see a fourth player in Australia's mobile market, so are we worse off?

The ACCC had argued in court that if the two companies were prevented from merging, TPG would go ahead and build a fourth network anyway, and therefore this would mean lower prices for consumers."It is abundantly clear that if Mr Teoh does not vote in favour of a roll-out it will not occur," Justice Middleton said.

Justice Middleton also stated that"it is not necessarily the number of competitors that are in the relevant market, but the quality of competition that must be assessed".In other words, the court can only decide on what currently is, not what may be in years to come. "A merger would not now, and would not likely in the relevant future, substantially lessen competition in the supply of retail mobile services in Australia," Justice Middleton said.But a former ACCC boss, Allan Fels, said the decision would disadvantage consumers.

"A reduction from four to three [players] is generally a source of reduced competition," Professor Fels said.

 

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Why would you invest if the market gets flooded........there not the salvos.

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