The Telstra Group Ltd (ASX: TLS) share price is up 0.1%.
Shares in the S&P/ASX 200 Index (ASX: XJO) telco closed on Friday trading for $4.26. In morning trade on Monday, shares are swapping hands for $4.27.
For some context, the ASX 200 is currently down 0.3%.
This comes on the news that Telstra has abandoned its long-running efforts for a regional network sharing arrangement with rival TPG Telecom Ltd (ASX: TPG).
The TPG shares price is down 0.3% at this same time.
Image source: Getty Images
Why is the network sharing arrangement being binned?
Telstra first announced the ten-year regional multi-operator core network commercial agreement with TPG back on 21 February 2022. The Telstra share price initially gained on that announcement.
Had the deal gone through, Telstra would have been given access to TPG's spectrum on the 4G and 5G networks. In turn, TPG would have been granted access to 3,700 Telstra mobile network assets.
But a hitch quickly developed.
The deal requires Australian Competition and Consumer Commission (ACCC) approval. And just three days later, on 24 February 2022, an ACCC spokesman said the agency was concerned that the deal could increase mobile price plans. "We'll be looking very closely at this," he said.
The Telstra share price slid on the day.
In December the ACCC delivered its verdict. And it was not the one the telcos had been hoping for. Citing "a real risk that TPG and Optus will invest less in critical infrastructure", the ACCC ruled against the deal.
Fast forward to 21 June and the deal began to look ever further out of reach when the Australian Competition Tribunal supported the ACCC and decided not to authorise the telcos' regional network sharing arrangement.
Which brings us to today.
This morning Telstra reported that it would not appeal the Australian Competition Tribunal's determination.
TPG said it will also not be seeking judicial review.
The telco added:
TPG Telecom will continue to explore commercial options to expand its mobile network, which currently reaches 96% of Australia's population, and will advocate for sensible policy reform for improved connectivity in regional Australia.
Telstra share price snapshot
The Telstra share price is up 8% so far in 2023.
