TeamTalk makes second application to acquire Telecom's mobile radio business
Published21 Feb 2000
The Commerce Commission has received an application from TeamTalk Limited for authorisation to acquire Telecom New Zealand Limited's mobile radio business, Fleetlink.
This is TeamTalk's second application to acquire Fleetlink. In December last year the Commission declined TeamTalk's application for clearance. The Commission was not satisfied that, should the acquisition go ahead, TeamTalk would not acquire a dominant position in the national market for trunked mobile radio network services.
Commission Commerce Act Manager Geoff Thorn said that making an authorisation decision is a much more complex procedure than deciding on a clearance. An authorisation is, in effect, an exemption from the Commerce Act.
A business acquisition that would otherwise be prohibited because of dominance concerns can still be authorised. To grant an authorisation the Commission must be satisfied that public benefits from the proposal outweigh its detriments to competition.
The Commission will investigate TeamTalk's application and will then publish a draft determination setting out the Commission's preliminary view on whether it would or would not grant the authorisation.
The draft determination will give interested parties a clear indication of what the Commission sees as the key issues and where it wants any further information. The Commission will then invite interested parties to make submissions on the draft determination.
The Act gives the Commission 60 working days in which to make its final decision. The Commission will publish its timetable soon.
Public copies of TeamTalk's application are available from reception at the Commission's Wellington office, 7th floor Landcorp House, 101 Lambton Quay.
