Telstra halts Adam buyout review

By on
Telstra halts Adam buyout review

Telecommunications giant Telstra has called time out on the ACCC’s review of its $60 million acquisition of South Australian ISP Adam Internet.

A spokesman for the telco said that the parties needed "more time" to consider potential issues with the buyout that had been raised by the competition watchdog.

Concerns include that Telstra may offer Adam Internet favourable wholesale pricing in the South Australian market.

"The ACCC's preliminary view is that post acquisition, Telstra would have the ability and incentive to utilise its market power to favour Adam over its wholesale customers in the provision of access to its network infrastructure," the watchdog had warned.

The compeitition watchdog had called for submissions on the proposed buy, and was due to make a final ruling by February 7.

Insiders to the deal said it is still looking positive, but more time is needed to work through the issues.

“We will continue to engage with the ACCC and we’re confident we can work through any concerns in a timely manner," Telstra's spokesman said.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © iTnews.com.au . All rights reserved.
Tags:

Most Read Articles

You must be a registered member of CRN to post a comment.
| Register

Poll

You have to spend $10k on new business hardware. What do you buy?
Collaboration hardware
Enormous monitors
New smartphones
New PCs
Minimum spec Mac Pro for $9,990.
We'd fake some paperwork and have a party instead
View poll archive

Log In

Username / Email:
Password:
  |  Forgot your password?