It is up to Boost and other MVNOs to keep the bigger guys honest. We must continue to push the envelope and be that value play for consumers.
And another from David Tudehope, CEO, Macquarie Telecom
This decision will only worsen the lack of competition, which has meant our industry continues to underserve and overcharge customers.
Now that the decision has been made to allow the merger to go ahead, the Government and ACCC will need to reconsider how to improve retail and wholesale competition in mobiles.
The telco industry gets twice the number of complaints to the Telecommunications Industry Ombudsman (TIO) as the banking industry’s Australian Financial Complaints Authority (AFCA), its new Ombudsman, even after the Royal Commission.
As a result, the telco industry risks losing its social licence.
Editors note: Peter and David’s comments are spot on and appreciated but remember MVNOs buy carriage from Telstra, Optus and Vodafone and really don’t have too much room to keep the bastards honest. ACCC Rod Simms wanted a fourth network that would never happen.
GadgetGuy’s take – Vodafone and TPG merger is back on – so what?
You combine Vodafail with an ’aggressive’ low-cost NBN reseller that owns brands like iiNet and Internode. You don’t get the fourth network! You get a lot of customers that want ‘cheap’.
Neither has a very good reputation with the TIO, ACCC or the public. So I hope customer retention is high on its list as that has not been the case.
In the TIO Q2, 2020 FY report Vodafone had 1304 mobile and 137 internet complaints, iiNet 842 internet and TPG 678 internet. The Tio reported that “Complaints related to NBN services accounted for 41% of all iiNet complaints and 37% of all TPG complaints.”
As any savvy businessperson will tell you merging two weak business results in an even weaker one.
We won’t see a vastly cheaper deal on mobile and internet. I don’t think Telstra or Optus will change one iota because of this proposed merger.
We will see shareholders take a quick profit from both companies as they sell inflated stocks. Then comes the sobering business of merging two very different companies with very different corporate philosophies and missions.
As any savvy businessperson (well Harvard Business Review) will tell you 90% of mergers fail. I am looking forward to due diligence and discovery. I would not be surprised if the merger does not go ahead – or at best on far different terms.
The merger is a shrewd strategic move by Teoh to get what he wants.