Macquarie maintains ratings on Telstra, TPG Telecom, comments on Aussy telecoms

Investing.com -- Australia's competition regulator has launched its fourth review of regional mobile access, Macquarie said in a research note.

The Australian Competition and Consumer Commission began the inquiry without a specific trigger event, though domestic roaming has remained a policy issue. The ACCC's previous review concluded in 2017 without declaring regulation, determining it would not serve end users' long-term interests.

Market changes since then include the proposed UOMO framework, direct-to-device satellite technology, and the Optus-TPG mobile operator core network agreement, prompting the regulator to revisit the matter.

Mandated access could diminish Telstra's (ASX:TLS) regional network advantage while strengthening coverage and competition for TPG Telecom (ASX:TPG) and other companies seeking access, Macquarie said. Telstra would likely serve as the main access provider due to its larger network footprint, even though access could flow in both directions where operators have local advantages.

Coverage represents a key element of brand strength in Australia, and regulated access could weaken Telstra's competitive position, the research note said. Telstra is expected to argue that regulation would reduce investment incentives and may not benefit consumers over time.

Optus opposed regulated roaming in the previous inquiry, but its current stance is unclear following its core network agreement with TPG, which already reduced some regional network differentiation.

The inquiry will run for approximately 12 months. The ACCC will consult with industry participants and regional communities before deciding on regulation. Macquarie maintained its neutral rating on Telstra and outperform rating on TPG Telecom.

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