30 Oct 2012

Greens critical of teleco merger

2:52 pm on 30 October 2012

The Green Party is critical of a decision by the Commerce Commission to allow Vodafone to take over TelstraClear.

Co-leader Russel Norman says it is not in the long-term interests of the economy for the commission to be eliminating competition in the telecommunications industry.

The commission on Tuesday approved Vodafone's purchase of TelstraClear, concluding it would not lead to a substantial reduction in competition.

It said the merged entity would continue to face competition from Telecom, as well as Orcon, Slingshot and other smaller businesses in providing fixed line voice and broadband services.

But Radio New Zealand's political editor said the Green co-leader disagrees.

Dr Norman said consumers won't notice in the short-term, but it's the longer term effects he's worried about.

Dr Norman said that as a small market New Zealand is prone to monopolistic behaviour and it's important to maintain a competitive market rather than try to police a few dominant players.