Tim Boreham sez: 'Speaking of the ACCC, the competition...

Tim Boreham sez:
'Speaking of the ACCC, the competition regulator’s preliminary musings on the proposed union hints at potential problems in the fixed broadband market, including degradation of iiNet’s famed customer service standards.
Wisely, investors in both camps took the statement of issues — which sees no problems in other overlap areas such as mobiles, fixed voice and subscription TV — in their stride.
After all, it’s not the ACCC’s final opinion, but a view on what aspects need further inquiry.
A merged iiNet/TPG would account for 27 per cent of the retail broadband market, with Telstra on 41 per cent, Optus on 14 per cent and alternative iiNet suitor M2 Telecommunications on 8 per cent.
Criterion has seen far worse industry concentration and will happily punt that the union gets the green light, freezing out M2 and its trumped offer in the process. The only trouble is that the ACCC has pushed out its decision date until August 20, but keep happy and busy and time will fly. Both stocks are holds.'

My reckoning is TLS and others are not going to sit like stunned mulletts while TPM grabs mkt share. TLS is discounting their landline/ADSL packages to match TPM in price while offering a far better coverage. If you are already with Optus or Telstra call them and say you intend to move to another carrier. Watch how they will offer you a substantial discount to stay. I see a supermkt type war breaking out and the only winner will be.... you the customer.