ACCC clears way for NBN Co to buy TransACT's FTTP network

The Australian Competition and Consumer Commission (ACCC) has said it will not oppose the NBN Co’s takeover of TransACT’s fibre to the premises (FTTP) network.

The iiNet-owned TransACT’s FTTP network currently passes approximately 8500 premises in new residential estates in the ACT and once construction is complete, is expected to pass approximately 17,500 premises.

The competition watchdog considered that it was highly unlikely that NBN Co would overbuild the TransACT FTTP network in the absence of the proposed acquisition.

“The ACCC therefore concluded that the proposed acquisition represents a bare transfer of assets and wholesale market share from TransACT to NBN Co. Accordingly, the proposed acquisition is unlikely to substantially lessen competition in any relevant wholesale or retail market,” said ACCC Chairman Rod Sims.

The proposed acquisition would also remove TransACT’s vertical integration in the areas passed by the TransACT FTTP network and potentially open up these areas to increased retail competition, through the entry of other retail service providers. The ACCC also noted that the proposed acquisition would not result in horizontal aggregation at the retail level given that NBN Co is not a retailer. TransACT would continue to retail with or without the proposed acquisition.