Two of Australia's largest telco companies are joining forces in a a landmark $15 billion merger. The combined company will compete directly with Telstra and Optus and should lead to cheaper prices for customers. Here are the details!
The merger between TPG Telecom and Vodafone Hutchison Australia will result in a new, full-service telecommunications provider dubbed TPG Telecom Limited. It will boast 27,000km of fibre networks and approximately 5000 mobile network sites straight out of the gate. (Previously, TPG had announced is was building its own mobile network to the tune of $1.9 billion.)
“[With this merger] we will be a more formidable competitor against Telstra and Optus,” TPG founder David Teo said in a statement. “Together we will become a more effective industry challenger that strives to create competitively-priced consumer products with the high levels of customer service that differentiates us in the market.”
The two companies will jointly bid for a licence for the 3.6 GHz spectrum which will allow it to offer 5G services.
Vodafone CEO Iñaki Berroeta, who will take on the role of managing director in the new company, said the merger will result in stronger competition and greater choice in the fixed broadband and mobile space. The company's bolstered financial clout will also allow it to innovate by investing in new technologies.
The merger is expected to be completed next year. There's currently no word on what happens to existing TPG and Vodafone customers, but it's safe to assume that most legacy plans will be replaced with similar offerings from TPG Telecom Limited.
VHA Chief Commercial Officer Ben McIntosh has issued a statement promising that nothing changes for customers "for the moment".
We'll be updating this story as we learn more.
Vodafone Australia and TPG have ended a week of speculation by confirming plans to merge into a $15 billion company. The combined company reckons it will be powerful enough to take on the twin Goliaths of Telstra and Optus - but the numbers tell a different story when it comes to broadband.