![]() ![]() That means, for mobile services, the spectrum is best for higher density areas. The 3.6GHz mid-band frequency 5G spectrum has the capacity to carry more data, but has a shorter range than the lower bands used for 4G. It requires the government to make an investment in the network, something the current government has ruled out. Telstra chief executive Andy Penn said the wholesale price of NBN should be $20 cheaper. Retailers such as Vodafone, Optus and Telstra complained about no margin for reselling the NBN. ![]() And if any telco offers service at a lower price (below $50), the telco will gain over NBN. If NBN provides good service at a low price, people will keep using it. Who paid what amount for 5G in Australia Sourceīut this decision depends on NBN’s current wholesale pricing. The telco plans to work with TPG to start its own fixed wireless services to compete with NBN. In last December, Vodafone acquired substantial spectrum holdings in the 3.6GHz band auction for AU$263 million. Vodafone acquired spectrum to compete with NBN According to David Kaynes, a telco analyst with Citi, if the merger is blocked, and Vodafone and TPG have to build their mobile network, TPG may be very successful, but it would take a very long time. The ACCC invited submission about the merger from interested parties until January 18 and has delayed its final decision on the deal until March 28. Now there are only two choices – Ericsson and Nokia, for building future networks, as Samsung is not available in the Australian market. Huawei and ZTE provided cheaper equipment than European competitors such as Nokia and Ericsson. In response, Inaki Berroeta, the head of Vodafone Australia, said the ban on Chinese companies had diminished the TPG’s prospects of building an affordable mobile network. The ACCC expects consumers to increasingly prefer mobile broadband services over fixed home broadband after the rollout of the 5G network. The regulator has also pointed out the long-term impact of the TPG-Vodafone deal will be contrary to what consumers want. He added that if TPG remained separate from Vodafone, it would adopt an aggressive pricing strategy, offering cheap mobile plans with larger data allowance, which won’t be achieved by the merger. While TPG is a fierce price competitor in the fixed broadband market, Vodafone operates its own mobile network.ĪCCC Chairman Rod Sims said that their primary view was that TPG was currently on track to becoming the country’s fourth mobile network operator and an aggressive competitor for telcos. The ACCC has concern over the merger between Australia’s third and fourth largest telecommunications companies. The regulator wants to keep Vodafone and TPG separate to preserve good competition. However, the federal government’s ban on China-based 5G equipment suppliers, Huawei and ZTE (Zhongxing Telecommunication Equipment), now requires the merger to scale the third 5G network with a wide enough range to compete with Australia’s top two telcos.īesides these, Vodafone is having a tough time seeking approval from the Australian Competition and Consumer Commission (ACCC) for the merger with TPG. This $15 billion merger took place to build the country’s third major 5G network and set Vodafone in direct competition with Telstra and Optus. Vodafone, Australia’s third largest mobile operator and TPG (Total Peripherals Group) Telecom, a fixed-line broadband provider, announced a merger in August last year. Ban on Huawei and ACCC’s delayed decision on the Vodafone-TPG merger creating problems for Vodafone ![]()
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