Of interest to SKT shareholders is the Orcon/2D merger that has now received clearance from the Commerce Commission.
This is of interest primarily because the new merged business (which will keep the 2D branding) supplies Sky Broadband. But it is also of interest because it potentially paves the way for a tie up in the future between Sky and 2D - or potentially a wholesale mobile deal (one would think that 2D would have the edge in winning the business from Sky over Vodafone or Spark given they already provide broadband...).
Chris Keall wrote an article in the NZ Herald: https://www.nzherald.co.nz/business/orcon-group-2degrees-17b-merger-approved-by-comcom-but-hold-the-phone/4PSHMHS66T5E5ENLZ6A5ULXRPE/
Of note, he says:
"A hookup with Sky would be a tough sell
There has been some low-level chatter that the merged Orcon Group and 2degrees could go on to attempt a merger with Sky Television. But that is a deal that would likely run into flak with the Commerce Commission, like the proposed "VodaSky" deal before it.
None of their rivals objected to Orcon and 2degrees' merger during the ComCom's submission process.But Chorus - which took a neutral position on the deal - did use its submission as a platform to parade one of its hobby horses: that Spark, Vodafone and 2degrees face next-to-no regulation of their fixed-wireless broadband services, while UFB fibre is heavily bound in red tape.Chorus would probably push this point a lot harder if the combined Orcon Group/2degrees makes a play for Sky TV - which could, conceivably, see discounted Sky content used as a lure to hook customers on to fixed wireless."
Now then, nobody knows whether Voyage Ltd have got Sky TV in their sights to bring together the ultimate 'trifecta' deal. Thoughm, in my opinion, it would certainly create a new telco that can really shake things up and give Spark in particular real competition for once. Maybe they are interested, or maybe they are happy to just do wholesale deals and keep Sky as an important business partner - but at arms length. Time will tell.
What I do take issue with though is what I perceive to be lazy journalism by Mr Keall. For some time now it has been clear to me that Mr Keall does not particularly like Sky TV...and because of his dislike for the business he constantly muddles fact with his personal opinion when he is writing 'news' articles.
If 2D were to attempt to buy Sky TV I am sure the deal would come under plenty of scuting by the gatekeepers, and I am sure competitors will try to put a case forward for why the deal should not be allowed. Clearly a 2D that also has Sky TV is a more serious competitive threat than 2D on its own.
But the idea that the reason a deal like this might get blocked because Chorus will complain about the lack of regulation in fixed wireless is fantasy land. If there is currently an uneven playing field between fixed wirless and UFB then Chorus should be pushing to have this resolved regardless of whether 2D do a tie up with Sky TV (or anyone else for that matter). What has Sky TV's primarily satellite distribution for content got to do with any legitimate questions surrounding whether or not the rules/regulations between fixed wireless and UFB are fair?
If Mr Keall paused to think about it before putting pen to paper, then he would note that if a 2D-Sky deal is a big 'no no' because Chorus would be unhappy then Spark should not be allowed to have an exclusive deal with NETFLIX. They should also not be allowed to have Spark Sport.
The reality is, if 2D eventually go after Sky the deal is more likely to get approval than not. I think any position by the Comcom that said Spark is allowed to be in the content business but 2D is not would be untenable. No doubt 2D and Sky would need to demonstrate and commit to genuine wholesale offerings for their content, but Sky already have that in place (after all, right now Sky is happy to partner with anyone with wholesale arrangements if it means they can grow their customers).
(20min delay)