ACCC greenlights TPG functional separation

ACCC greenlights TPG functional separation

Allows TPG to splits its wholesale and retail subsidiaries.

Iñaki Berroeta, CEO (TPG Telecom)

Iñaki Berroeta, CEO (TPG Telecom)

Credit: TPG

Australia’s national competition watchdog has signed off on a joint functional separation of TPG Telecom.

Coming into effect on 7 October, the decision allows TPG to splits its wholesale and retail subsidiaries.

In line with the undertaking, as per the Telecommunications Legislation Amendment (Competition and Consumer) Act 2020 (TLA), this essentially allows TPG to compete in both wholesale and retail superfast broadband services markets for residential customers and expand its fixed lined network footprint.

This includes TPG’s existing fibre to the building (FTTB) and TransACT networks, as well as any new superfast local access lines that TPG deployed, according to the Australian Competition and Consumer Commission (ACCC).

“The ACCC decided to accept TPG’s undertaking on the basis that it is likely to promote the long-term interests of end-users, subject to TPG adhering to the statutory non-discrimination obligations and each of the commitments in its undertaking,” the watchdog said.

“We consider that TPG’s undertaking is likely to foster enhanced infrastructure-based competition, as it provides TPG with greater regulatory certainty and flexibility to expand its network footprint.

“The undertaking is also likely to promote retail-level competition by providing wholesale customers access to a larger wholesale network that is simpler and more cost effective to connect to.”

The ACCC sought out feedback on TPG’s functional separation in November 2021 to decide whether the separation promotes the long-term interests of end-users, as well as other matters it deemed to be important.

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