The Australian Competition Tribunal has rejected a planned landmark infrastructure deal that would have allowed TPG Telecom to use Telstra’s towers in regional Australia, sending TPG shares tanking.
On Wednesday, the tribunal declined to authorise the network sharing arrangement, which is the second rejection of the deal after the Australian Competition and Consumer Commission blocked it in December.
TPG and Telstra both protested that the decision was a setback for mobile coverage in regional Australia, and TPG said it would consider lodging a further appeal in the Federal Court.
TPG shares were down 8.3 per cent to $5.10 in early trade, as the company said that if the network sharing arrangement did not ultimately proceed, it may need to increase its capital expenditure in its existing regional network.
Source: Thanks smh.com