According to the Australian Financial Review, Vodafone Hutchison Australia stated its 5G network will be smaller, slower, and worse than those of its competitors Telstra and Optus unless it is allowed to merge with TPG, in a document filed with the Federal Court.
The statement of claim was the first shot fired in the company’s legal challenge against the Australian Competition and Consumer Commission’s surprise decision this month to block the proposed US$15 billion merger. Vodafone is the lead applicant in the claim, with TPG the second respondent.
Vodafone’s central argument was that without the merger it would not have access to TPG’s radio spectrum or the improved access to financial resources, limiting its ability to compete with Optus and Telstra, both of which have considerably more licensed spectrum. The more spectrum a mobile operator has, the less likely it is to suffer congestion and the resulting slower speeds for customers.