What to know about a possible merger between Telstra and Optus
The merger between Australian Telstra, Optus and Vodafone could have a major impact on Australia’s telecommunications market.
Telstra CEO Bill Morrow says it could create an industry “unprecedented in the world”.
Photo: Andrew Meares “It will be a new industry,” he told the Australian Financial Press in an interview.
“I can’t wait to start working with Telstra to deliver the best network we can and a network that is affordable to the consumer.”
He said the merger would allow Telstra “to bring the best value for money to the Australian market”.
The merger would bring Telstra’s wholesale prices to an average of $1,000 a month, up from $913 a month.
It would also allow the two companies to share more of the costs of the network.
But the merger could also mean Telstra could lose a third of its retail network.
Telstar is now owned by rival Telstra.
Photo: David Crosling “What that means is the retail prices for customers who are already using Telstra would be higher, but there would be no loss in services that Telstra has provided over the last 10 to 20 years,” Mr Morrow said.
“What we’ll be able to do is increase the number of customers that Telstar customers are accessing.”
Mr Morrow says the merged company would be “much stronger” than Telstra in the retail sector.
Telco has a network of more than 10,000km of copper-based network, including a network across Melbourne, Sydney and Brisbane.
It also owns a number of regional copper networks in the north-west and east, and is currently looking at extending its copper network to Perth and Adelaide.
Telcos chief executive Bill Morrow at the media event.
Photo:”We’ve got the copper network, the copper to serve those customers and the copper lines that go to those customers.”
Mr Morrison also spoke about the potential impact of a merger with rivals.
He said there was “no question” the merged Telstra company would need to have a stronger presence in the telecommunications market, and there would need be more competition in the wholesale sector.
“There’s going to be competition, competition for the market.
There’s going, there’s going a bit of competition for our consumers to access those services,” Mr Morrison said.
Optus CEO Mike Quigley says Telstra needs to diversify its retail business.
Photo”: AP “We have a great retail business, and it’s a great service that’s really important to us,” he said.
Advertisement “It’s also important for us to have more choice, but we’ve got to make sure we’re not just dependent on Telstra.”
Mr Quigleys Telstra retail business has grown by $200 million to $1.9 billion since the company was formed in the 1990s.
Optuses CEO Mike Zimbalist says Telstel’s network is “the envy of the world” and that the combined company would “be the most powerful in Australia”.
He said that the merged telco would be better positioned to compete in the new internet age.
Optens network is also a strong contender, with revenue up 40 per cent since the merger.
Opten’s business is expanding rapidly, with its retail revenue up 80 per cent in the last three years.
Optan is a “strong, global brand” and will have a presence in “new markets like Asia”, Mr Quiggley said.
Telus and Optuses combined revenue was $3.9bn in 2016, up $1 billion from the year before. “
The combined entity will be able provide the best broadband, wireless, phone and internet services and we will be more competitive,” Mr Quigs said.
Telus and Optuses combined revenue was $3.9bn in 2016, up $1 billion from the year before.
“In terms of consumer broadband, Optens is ahead of Telstra by a significant margin,” Mr Zimbelist said.