Commerce Commission releases its decision on TelstraSaturn: www.comcom.govt.nz
Published24 Dec 2001
The Commerce Commission has released the public copy of its decision to clear TelstraSaturn Limited to acquire CLEAR Communications Limited.
The Commission cleared TelstraSaturn's application to acquire CLEAR on December 7.
Acting Commission Chair Paula Rebstock said that the Commission is satisfied that the proposed acquisition would not substantially lessen competition in any market.
"The Commission concluded that 18 different telecommunication markets were relevant to its assessment of the implications of the proposed acquisition," said Ms Rebstock.
"Potential concern had been raised regarding the possible creation of a duopoly and a consequent lessening of competition, in particular in the wholesale market for backbone transmission.
"However, owing to the presence of Broadcast Communication Limited (BCL) in that market and the high level of unused capacity, the Commission concluded that there would not be a substantial lessening of competition in that market.
"In a number of other markets, the acquisition leads to only small levels of aggregation, while in other cases, the presence of a significant number of other competitors is likely to constrain the merged entity."
The decision is available on the Commission's website, www.comcom.govt.nz.
Media contact: Director of Business Competition Branch Geoff Thorn
