Intelligent CIO APAC Issue 22 - Page 41

Commpete says challenger brands in Australia today still only command 9 % market share and the regulatory settings unduly favor scale and incumbency . This is of great concern to the organization , because MVNOs rely on unregulated access to MNOs ’ infrastructure , despite MNOs being in a disproportionately strong bargaining position and largely being able to dictate the terms of service agreements .
Commpete argues the proposed Telstra / TPG deal will make it even more difficult for MVNOs to negotiate reasonable terms . Commpete is concerned that this will reduce competition in the market even further . It says TPG will be significantly reliant on receiving wholesale access to the Telstra network , meaning the number of mobile networks in Australia will effectively go from potentially four prior to the TPG / Vodafone merger , down to only two-and-a-half .
“ The sort of dynamic , highly contested , innovative mobile market that should be expected in a country like Australia has failed to develop and it is clear that a more activist approach to regulation is required ,” Lim said .
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