Without comment on the issue of capacity and ability for each tower to service the new found ‘customer bases’ it might look good in their adverts. Fewer black spots for each?
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Possibly not the black spots we might imagine?
For TPG the pathway to the previous merger with Vodafone, was unsuccessfully opposed by the ACCC and Rod Sims. It matters little with Rod to be replaced next month by the Treasurer’s hand picked replacement. A new set of eyes and an opportunity to consider whether it’s good for consumers and competition.
TPG bring additional 4G and 5G spectrum to the deal, while handing over to Telstra or shutting down the mobile towers it currently operates.
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Seems you haven’t heard the news. Vodafone in Australia is a part of TPG Telecomms, for two years now.
The ACCC approved that merger / takeover.
Not exactly.
The Australian Competition and Consumer Commission (ACCC) said that all three of the nation’s biggest telcos — Telstra, Optus and Vodafone — have effectively raised post-paid and pre-paid mobile plans since July last year.
The ACCC had vehemently warned against the merger, claiming it would damage competition in Australia’s mobile phone market as Telstra, Optus and Vodafone — now part of TPG Telecom — collectively hold 87 per cent of the total retail mobile phone market and have more than 95 per cent of the post-paid market.
And apologies, I did speak out of context, obviously misinterpreting the AFR. I’ve edited accordingly. Thanks.
How many mobile service providers do you actually need anyway? We have three that compete robustly in major cities and regional areas.
The problem is out in the remoter areas where there is far less choice.
From how I read this sharing plan between Telstra and TPG, it should be a win for customers in getting better competition. I read about it in ITnews website. The sharing deal is all about coverage in the remote areas where costs for infrastructure per user are far higher than in cities.
How do think that makes any difference? The size of the pool of customers (clarification added - within reach of each regional located mobile tower) is very much a constant.
The core question is does this address black spot coverage in regional areas?
The Commonwealth Govt has been using targeted funding (some would say pork barrel) to fund more regional towers, the regional black spots program. Telstra for the obvious being the first choice of regional customers is the telco taking greatest advantage.
If we were being pragmatic, the challenge question is whether regional mobile coverage should be nationalised under one infrastructure business? And all the mobile Telcos pay to use it on equal terms, similar to the NBN with urban customers subsidising the regional infrastructure.
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Do you want to rethink that? Do you really think that the population density within the range of a tranceiver tower in a major city or town is the same as that of a remote area?
A point is if there is a black spot now, and telcos start sharing towers there might be competition but the black spots remain unless there are more towers, or more capable towers.
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As I think the Government has no desire to deal with lack of coverage in remoter areas, by say establishing an NMN, the national mobile network, it is left to the existing mobile providers. If they share the cost of putting up new towers, it must be more viable to do this.
Not really, however I’ve added a small note to further clarify differences in the points of reference. I suspect we are looking at the same illusion of service and disinterest.
We’re fortunate in that where we live we have a choice of mobile coverage from Optus or Telstra. Whether one has coverage of one or other or both or none, it’s almost certain one has a mobile or two. The community is fully subscribed, mostly at Telstra’s premium rates, or through one of their prepaid offspring.
The black spots will remain, except where interests pry open the purse of the Commonwealth. We’ve had two towers added recently to our region with much political praise and the public purse.
Speculation and a diversion?
A suspicion here is TPG has realised that in spreading into the lower demand regions, there was never going to be a sufficient customer base to repay the investment. Especially given in most areas it had at least Telstra and often Optus as established competitors. For TPG/Vodafone if the plan gets ACCC sign off it can shore up patronage of more urban customers by ensuring coverage when they leave home.
As a small bonus, where the NBN Fixed Wireless overlaps Telstra (and if successful TPG access) will there be further competition for mobile broadband? Orphaned Child of TPG - Westnet via iiNet is keen to convert customers over to Fixed location Wireless broadband utilising the Vodafone mobile network. I’ve had several approaches very recently. Nominal 25Mbps unlimited data, at NBN competitive rates.
