ACCC won't block this. They were concerned about the top 4...

ACCC won't block this.

They were concerned about the top 4 retail ISPs merging - Telstra, Optus, TPG and M2.

Vocus brings infrastructure, doesn't have any real retail offering (aside from Amnet via Amcom).

Arguably from a consumer POV Vocus + M2 creates a stronger 4th player, increasing competition for Telstra, TPG and Optus.

On the infrastructure competition side, M2 doesn't own much. It was mentioned on the conf call that M2's IRUs with Telstra were necessary to reach all 121 NBN POIs.

There was also an amusing question from UBS about the final missing piece of infrastructure - inter-cap. The response included "yes, everyone keeps asking if we're going to buy Nextgen" but was otherwise the usual "let's get this transaction done first".

The combined group has ~8% of AU broadband market (and ~15% of NZ). There's a lot of upside but coming back to the ACCC - not a competition destroying combination.