Telstra's deal with Adam Internet falls through
- 23 July, 2013 15:48
Telstra will not be proceeding with the planned acquisition of South Australian based ISP, Adam Internet, according to a statement from Telstra.
The deal was announced in October last year and came under ACCC scrutiny after major telcos Vodafone Hutchinson Australia, iiNet and Macquarie Telecom struck out against the proposed deal urging ACCC to take action, ARN previously reported.
The proposed deal had a contractual end date of 30 June 2013.
In the statement, Telstra chief customer officer, Gordon Ballantyne, said the ACCC had raised a number of concerns with the acquisition, which Telstra had attempted to address, but in the end had not been able to secure approval from the ACCC 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,” Ballantyne said.
Adam Internet executive chairman, Greg Hicks, said it was “unfortunate the time frame could not be met.” “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,” Hicks said.