Australia's ACCC: Won't Oppose Vodafone, Optus 3G Pact"

Australia's competition regulator said Tuesday it won't oppose an arrangement for the local units of Singapore Telecommunications Ltd. (s12.SG) and Vodafone PLC (VOD) to share a third generation mobile telephone network.

Sharing networks might reduce the extent of infrastructure-based competition in the 3G market but is also likely to save mobile companies significant costs which should "encourage the deployment of more extensive 3G networks, sooner," the Australian Competition & Consumer Commission said in a statement.

The ACCC said it also took into account assurances from Singtel's Optus and Vodafone that they will continue to compete in the retail 3G market.

Australia's largest telephone company Telstra Corp. (TLS) and the local unit of Hutchison Whampoa (0013.HK) also have an agreement to share a 3G network.

Telstra, which is paying Hutchison Telecommunications Australia Ltd. (HTA.AU) A$450 million for a half stake in the network, expects to offer 3G mobile services in Sydney, Melbourne, Perth, Adelaide, the Gold Coast and Brisbane from July next year.

Optus and Vodafone are building a 3G network from scratch and aim to offer services in Sydney, Melbourne and Canberra from the third quarter of calendar 2005 with Brisbane, Perth and Adelaide to follow later.

-By Stephen Wright, Dow Jones Newswires;

61-2-8235-2950; stephen.wright@dowjones.com

-Edited by Graham Morgan

(END) Dow Jones Newswires"

Posted to the site on 13th December 2004