Merger promise: We won't hike charges, say Vod, Hutch

Dylan Bushell-Embling
26 May 2009
00:00

Vodafone Australia and Hutchison Australia 3 have promised not to raise prices for at least two years if the merger between the two companies is approved.

"We operate in a fast-moving market and we want to be clear that, following the merger, Vodafone and 3 will remain extremely competitive and continue to provide great value to customers," said 3 CEO Nigel Dews.

Dews, who is also the proposed CEO of what would become known as Vodafone Hutchison Australia (VHA), said no plan offered by Vodafone or Hutchison would be withdrawn in the two years following the merger. But new offers and services would be introduced, he added.

The merger between Australia\'s third and fourth largest mobile operators would create a company with around 6 million subscribers and annual revenue of A$4 billion ($3.14 billion).

But Australia\'s competition watchdog, the ACCC, has threatened to block the merger, believing the reduced competition could lead to higher charges for Australian consumers.

The ACCC is due to rule on the merger on May 28.

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