Well if you want to know whether Sims is right about competition - just watch the SP reaction of TLS and VOC over the next few weeks or whatever IMO.
If may be that TPM can provide an undertaking via some sort of formula and transparency for its pricing that guarantee they will compete hard. But then that will detract from much of the purpose of merging or JVing.
But the ACCC case is really all about their perceived public interest - lower pricing. I'm not sure it will be an easy one to argue that they are definitely wrong with a higher authority. Some gambits might be - they could undertake to do something really groovy in the market, like bring new tech in. But I don't see how they could dazzle in comparison to TLS, or alternatively maybe they could set a cost plus formula for pricing offered to MVNOs - to ensure that MVNOs can compete very aggressively. (However this might undercut everybody including existing pricing to customers of Vod and Iinet - so might be an expensive pill - and locks in a long term competitive strategic disadvantage, especially if another operator enters the market at some time. And also would allow the competition to see precisely what TPM's costs are for specific services - opacity is an advantage in business usually).
I might be misguided in some of my comprehension of the tribunal - keen to be corrected if I am. Wish I shorted TPM yesterday.
TPM Price at posting:
$6.21 Sentiment: None Disclosure: Not Held
