[AusNOG] iiNet to Acquire Internode

[Tony]

It's highly unlikely the ACCC will care. I don't think the combined entity (iiNet + Internode) will have more than 20% market share (or will they ?), which is one threshold for ACCC to start looking at things and it won't substantially lessen competition in the market when you've still got a number of other strong players (Telstra, Optus, TPG, Exetel, etc).

Will iiNet have an increased power in the market ? Will they be able to raise the price of their products as a result ? 


I'm not even sure if ACCC gets involved with sale of privately owned companies (Internode is not listed), although I can't see why they wouldn't it probably just doesn't come up that often as most large companies that they would be scrutinising for lessening competition in a market would be listed.

As someone else said, the press release to the ASX should have had "subject to ACCC...." if it was going to be a concern. I doubt it's even on the radar. The ACCC might even applaude the move as it might create a business that is more able to compete with Telstra and so actually INCREASE competition in this particular market.



regards,
Tony.



________________________________
 From: Peter Tiggerdine <ptiggerdine at gmail.com>
To: ausnog at ausnog.net 
Sent: Thursday, 22 December 2011 3:24 PM
Subject: Re: [AusNOG] iiNet to Acquire Internode
 

It's a TPG vs iiNet maket with a race to the bottom.
 
consumers calling ACCC...
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