Commerce Commission looks set to approve Vodafone sale

A Statement of Preliminary Issues released by the Commerce Commission suggests it is unlikely to object to the proposed acquisition of 50 percent of Vodafone by Infratil.

The Commission notes Infratil's ownership of Trustpower, which is both a power utility and a telco, but recognises the two businesses will be kept separate. It also notes the recent resale agreement between Spark and Trustpower.

In its statement, the Commission zeros in on the likely competitive impact writing:

"The proposed acquisition would result in overlap in the supply of fixed line broadband and voice services to consumers, as well as limited overlap in the supply of those services to business customers.

"Given Trustpower’s plan to supply wireless broadband and mobile services to consumers, there are also potential future overlaps in those markets."

The Commission goes on to say; "We will investigate whether the proposed acquisition would be likely to substantially lessen competition in the relevant market "

No difference in competition

It appears to accept this may not be the case as it goes on to say: "...the number and strength of existing and potential competitors in the national markets for residential broadband and voice services means that there would be no substantial difference in competitive constraint post-merger."

The Commission also says there is negligible overlap in the business broadband market and that analysis of this is not required.

It says: “We will give clearance to a proposed acquisition if we
are satisfied that the acquisition is unlikely to have the effect of substantially lessening competition in a market.”

The Commerce Commission has invited comments from the industry and says it wants to make a final decision by July 15.

Vocus back in play as A$3.3 billion bid lands

Vocus Communications received an A$3.3 billion takeover bid from EQT Infrastructure, a Swedish private equity firm. According to The Australian Financial Review there are other potential buyers waiting in the wings.

The EQT Infrastructure bid represents a 35 percent premium on the company's share price at the time it was lodged.

It comes only days after Infratil and Brookfield's successful bid for Vodafone New Zealand and suggests other telco sector mergers and acquisitions could be on the way.

According to the AFR, the key is Vocus' fibre assets. The paper goes on to report there's a likelihood the company's retail business will be sold off. This would include most of Vocus' New Zealand operation.

Online security to get budget boost

In this week's budget government earmarked $2 million a year to support the roll-out of a cyber security strategy. It starts in the 2020 financial year. The strategy “supports New Zealand’s response to the growing scope, scale and sophistication of cyber threats”.

The strategy was originally established by Clare Curran when she was communications minister. Existing communications minister Kris Faafoi will lead the strategy.

CERT, the Computer Emergency Response Team, gets an extra $2.2 million a year plus a $560,000 capital injection.

Elsewhere a further $250k a year has been set aside to lift the security capability of the Parliamentary Service.

Taylor takes over Reannz reins

New Zealand Racing Board CIO Dianna Taylor is the new Reannz chief executive officer. She replaces Nicole Ferguson who was in the role for three years. Taylor takes up the role in August. Reannz is the government owned company that runs the nation's specialist research and education network.