ACCC hung up on TPG 5G claims
LAWYERS for the competition watchdog have questioned how TPG Telecom thought it could become a 5G leader by 2020 when it did not have the right technology.
And TPG’s founder, reclusive billionaire David Teoh, has been challenged in court over claims his telco selected Huawei equipment for its nowabandoned 4G mobile network because it could eventually be upgraded to 5G.
Mr Teoh, whose wealth has been put at about $2.5 billion, was making a rare public appearance to fight a ban on the proposed merger of TPG and Vodafone Hutchison Australia.
The case, brought by Vodafone, is being heard by Justice John Middleton.
Vodafone and TPG want to overturn the Australian Competition and Consumer Commission’s decision earlier this year to reject their $15 billion merger.
The ACCC has said the merger will hurt competition by taking a prospective fourth player out of the mobile market.
But TPG has said it is now too hard to build a fourth mobile network that can compete with those offered by Telstra, Optus and Vodafone.
TPG has said the federal government’s ban on the use of 5G equipment from Huawei is the main reason it can no longer build a viable mobile network, but the competition watchdog has said the telco could still build and run a 4G network.
Mr Teoh yesterday answered questions from Michael Hodge, QC, who was representing the ACCC.
Mr Hodge scrutinised TPG’s decision early in 2017 to build a 4G mobile network that could compete with those offered by other telcos.
TPG signed a deal to use Huawei equipment to build its network in November that year.
Mr Teoh, who is the executive chair of TPG, told the court he had discussions with Huawei in which the Chinese company said “they could give us 4G equipment that could be upgraded to 5G”.
But as Mr Hodge scrutinised details of their agreement, Mr Teoh revealed Huawei had only produced the appropriate wireless technology to allow the upgrade to 5G mid last year.
It was also revealed TPG’s 700 megahertz spectrum was not able to be used for 5G services.
Mr Hodge put it to the court that TPG was effectively looking to be an early player in the 5G market, but did not have the right spectrum or much of the technology needed.
He also questioned when the telco thought it could become a 5G leader.
“We didn’t think we would be the first but could be one of the first,” Mr Teoh the court.
He acknowledged TPG was hoping to be able to offer 5G by 2020.
The case will continue before Justice Middleton today.