Telco confident over merger with Vodafone

SYDNEY - Hutchison Telecommunications Australia says it has so far "weathered the storm" of the economic downturn, and remains confident its merger with Vodafone Australia will go ahead.

Hutchison, the owner of the 3 brand, has proposed a 50/50 merger with the local arm of Vodafone, which would see the creation of Vodafone Hutchison Australia.

The plan needs the approval of the Australian Consumer and Competition Commission (ACCC), which is due to deliver its decision on May 29.

The ACCC has previously stated concerns the joint venture may lead to increased prices in the mobile phone market.

It is also concerned existing network-sharing relationships between Vodafone and Optus, and Hutchison and Telstra, could lead to anti-competitive co-ordination under the joint venture.

- AAP