Competition effects of a Sky-Vodafone merger
Project by Link Economics Group
Expert reports on the competitive effects of a merger between Vodafone New Zealand and Sky Network Television, 2016-17
New Zealand’s pay television provider (Sky) and one of the country’s largest telecommunications service providers (Vodafone) proposed a merger, and applied to the Commerce Commission for a clearance. Utility retailer Trustpower and entrant wireless network BlueReach opposed the merger and engaged Link Economics to examine the likely effects on competition.
Link Economics’ report and cross-submission found that the merger could have significant detrimental impacts in the wholesale and retail markets for fixed broadband and mobile services by restricting the contestability of a significant portion of residential customers (those who purchase Sky premium content) and reducing the ability of many telecommunications service providers to expand and achieve scale efficiencies.
The Commission declined clearance because it had not been able to exclude the real chance that the merger would substantially lessen competition.
