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Hutchison Vodafone Merger to Go Ahead

The ACCC have approved the merger of Hutchison (3 Mobile) and Vodafone.

One of the most significant factors leading to the decision was the ability of the operators to make investments in the networks in order to satisfy the ever growing demand for mobile broadband products and services. The ACCC believed that the investment required was unlikely to be achieved without the merger.

This opinion has been echoed by research firms and analysts. IDC research believes that competition will be enhanced not lessened with the Vodafone / Three merged entity. The scale achieved by the merger will enable the new company to offer better and more innovative products and pose a serious threat to Optus and even Telstra.

Even though the competition has been reduced to three main players instead of four, three strong players are likely to be much more effective than two strong players and two weaker ones.

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Filed Under: 3 Mobile Broadband, Mobile Broadband News and Trends



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