Telstra drops bid for Adam Internet
Telstra has dropped its reported $60 million bid to acquire South Australian-based ISP Adam Internet.
The Australian incumbent announced plans to acquire the company in October last year, but the touted deal encountered regulatory concerns from the Australian Competition and Consumer Commission (ACCC).
Rivaling ISPs in the country have also raised concerns over Telstra’s potential dominance in the market as a result of the acquisition, with iiNet, Vodafone, Optus and Macquarie voicing opposition to the deal. Telstra already owns the fixed copper network in the country and would gain an advantage in pricing as a result of acquiring Adam.
The ACCC claims Telstra would lessen competition in the market as a result of any possible deal.
Telstra said in a statement it had attempted to address concerns, but the company inevitably decided to drop the bid, as it was unable to get the ACCC’s approval by the 30 June 2013, the contractual end date to its agreement with Adam Internet.
"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," said Greg Hicks, executive chairman at Adam Internet.