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VIRTUALISATION Vodafone and 3 attempt to ward off ACCC with pricing promise
VIRTUALISATION Vodafone and 3 attempt to ward off ACCC with pricing promise | Vodafone and 3 attempt to ward off ACCC with pricing promise |
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| by Stan Beer | |
| Monday, 25 May 2009 | |
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However, the stumbling block could be the Australian Competition and Consumer Commission which is due to make a determination on the merger this Friday 29 May. The big issue that has been raised is whether the merger would lessen competition in the Australian mobile phone market and thus result in raised prices. Both Vodafone and 3 (owned by Hutchison) are the two most aggressive players in the Australian market when it comes to price. Both offer attractive plans and rates in both mobile voice and data compared to their two bigger rivals and both compete vigorously against each other for a similar price conscious customer demographic. Thus, there is a strong argument that the merger could significantly impact the budget priced mobile market in Australia. It is in this context that the companies issued a joint announcement today with a title boldly proclaiming: "Vodafone and Hutchison committed to maintain market-leading prices" CONTINUED Page 2 |
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