Telstra Pulls Plug On Adam

Written by Oonagh Reidy     24/07/2013 | 12:23 | Category: WIRELESS & NETWORKING

Telstra has pulled out of the purchase of Adam Internet.

Telstra Pulls Plug On Adam


Telstra proposal to acquire South Australian ISP Adam Internet, announced in October last, has been killed off following concerns raised by the competition watchdog, ACCC.

Telstra yesterday confirmed the deal would now not go ahead.

The ACCC had raised a number of concerns with the acquisition, which Telstra said it had attempted to address, but in the end had not been able to secure approval in time. 

iiNet and Optus both made submissions to ACCC seeking to prevent the nation's biggest telco from snapping up South Australia ISP, late last year. 

Telstra had proposed to retain the Adam brand, its 90,000 plus customers and run it as a stand-alone subsidiary, but intended to expanding the ISP nationally.

The statement of issues released by the watchdog states:

"The ACCC's preliminary view is that post acquisition, Telstra would have the ability and incentive to utilise its market power to favour Adam over its wholesale customers in the provision of access to its network infrastructure."

Telstra Chief Customer Officer Gordon Ballantyne said the telco was "very disappointed" by the outcome. 

"We believe this transaction would have provided real benefit to Australian consumers and would have added new competition into the broadband market," Ballantyne said.

Executive Chairman of Adam Internet Greg Hicks said the company was "disappointed this important condition precedent could not be achieved in a commercially acceptable time frame, and therefore we will no longer be proceeding."

Breaking News

  • Can High-Res Audio Reboot Sony Walkman Sales?

    Can High-Res Audio Reboot Sony Walkman Sales?
    It's 2014 and Sony has bought the Walkman back this time as a 24Bit High Res Audio Player but the big question is this the "killer" portable play for High Res Audio going forward.

  • Netflix Run The Ruler Over Quickflix

    Netflix Run The Ruler Over Quickflix
    Quickflix the Australian content Company that has never made a profit and reported a $4.2m loss on revenues of $8.6m for the six months to December 31 has been targeted by giant US media Company Netflix who is set to launch in Australia in 2015.