The Australian Competition and Consumer Commission will investigate competition implications in relation to the proposed resale of Foxtel subscription television channels by Optus and Telstra, ACCC Chairman, Professor Allan Fels, said today.
Foxtel and Optus representatives met with the ACCC this morning to notify it of the proposed arrangements. The ACCC has been advised that the arrangements are conditional upon its approval. The Minister for Communications, Information Technology and the Arts, Senator Richard Alston, has also indicated that he will be seeking advice from the ACCC on the matter.
"The ACCC will be seeking more comprehensive briefing from the parties on the details of the arrangements prior to conducting market inquiries", Professor Fels said.
The ACCC will be closely examining the details of the arrangements, in order to assess the competitive implications for the pay TV and telecommunications industries, including in relation to the provision of bundled pay TV, telephony and broadband services.
"Foxtel and Optus are two of the major pay TV operators in Australia. Telstra holds a 50 per shareholding in Foxtel. Both Telstra and Optus are the largest telecommunications providers in Australia. Accordingly, the matter will require close scrutiny", Professor Fels said.