blog One interesting view on iiNet’s likely acquisition of TransACT has come today from maverick (we normally describe him as ‘rogue) analyst Paul Budde, who says that not only does the sale make sense, but more such buyouts should take place. Budde told the ABC:
“One of the things is that absolutely more consolidation is needed in the market. Even this possibility of TransACT and iiNet merging will not be enough, we will see more.”
Budde doesn’t completely explain his comment in the ABC story, which is distinguished for his brevity. But I’m sure his argument would go that true competition emerges when ISPs get enough scale to challenge the incumbents in the sector — Telstra and Optus. It’s the same argument the ACCC used when it allowed the merger of Hutchison and 3 Mobile.
Personally, as I wrote earlier on today, I disagree strongly with Budde. A market with more players is a market with stronger competition. But everyone’s entitled to their view. What do you think of Budde’s?
Image credit: BuddeComm