Telstra’s purchase of Adam Internet called off

23 Jul 2013

Australian fixed line incumbent Telstra has confirmed that its acquisition of alternative broadband provider Adam Internet has been halted. Having originally announced the purchase back in October 2012, as noted in TeleGeography’s GlobalComms Database, in January 2013 the Australian Competition and Consumer Commission (ACCC) suspended its review of the Adam Internet sale at Telstra’s request. At the time a Telstra spokesman said of the development: ‘We will continue to engage with the ACCC and we’re confident we can work through any concerns in a timely manner. Telstra and the ACCC need more time to consider the issues raised.’

However, it appears that attempts to address these issues failed, with a statement from Telstra regarding the latest development confirming that it had not been able to secure approval from the ACCC for the acquisition by the contractual end date. ‘We are very disappointed by this outcome. We believe this transaction would have provided real benefit to Australian consumers and would have added new competition into the broadband market,’ Telstra’s Chief Customer Officer Gordon Ballantyne said. For his part, Adam Internet’s executive chairman Greg Hicks added: ‘Adam Internet is disappointed this important condition precedent could not be achieved in a commercially acceptable time frame, and therefore we will no longer be proceeding.’

Australia, Adam Internet, Telstra (incl. Belong)