The ACCC has issued a final determination authorising Telstra Corporation Limited, Telstra Limited, NBN Co and their related entities to give effect to amendments to agreements they entered into in 2011 and 2014 which facilitated the rollout of the national broadband network.
The existing agreements, authorised under statute, provide the necessary legal certainty that certain conduct would not contravene Australian competition laws. This conduct is not the subject of any previous or existing ACCC authorisations.
The Telstra Group is proposing to undertake a restructure of its organisation and is seeking to incorporate its related entities into the existing agreements with NBN Co.
Under the authorisation, entities across the restructured Telstra group will be able to continue to give effect to their existing rights and obligations in the agreements with NBN Co, ensuring the agreements continue to operate as intended.
The ACCC’s assessment was limited to considering the potential public benefits and detriments that flow from the restructure and not from the existing agreements.
The ACCC concluded the Telstra restructure is likely to result in some public benefits including increasing value to the shares widely held by Australian retail investors, largely by improving commercial opportunities. The ACCC does not consider the amended terms create any additional competitive constraints in the market beyond those in the existing agreements.