Telstra Corporation Limited
(ASX:TLS) reportedly plans on launching its own low cost internet service provider if its $60 million bid to purchase Adelaide based company Adam internet is rejected.
The proposed acquisition requires approval from the Australian Competition and Consumer Commission (ACCC).
According to Fairfax reports, this is in some doubt after several of Telstra’s rivals lodged of letters of concern with the competition regulator, which is in the middle of investigating the acquisition.
Among ACCC concerns are the possibility of market advantages for Adam and a decrease in competition in the South Australian market.
It is understood Telstra doesn’t expect the ACCC to block the acquisition, however is prepared to launch a new low-cost service provider to achieve the same result of leading the telco towards lower cost business.
Telstra generated a net profit of $3.4 billion in fiscal 2012.
