The Vodafone NZ-Sky merger "is facing criticism from the telecommunications segment, with submissions accusing the two of trying to squeeze the competition out of the wholesale premium live sport and entertainment content market, the retail residential fixed-line broadband market, the retail mobile broadband market, and the pay TV market," according to Corinne Reichert of ZDNET. The New Zealand Commerce Commission on Tuesday "published submissions from Spark, 2degrees, the Coalition for Better Broadcasting, Trustpower," and the Telecommunications Users Association of New Zealand it received. Spark identified the main issue as being premium sport, claiming that it is "essential" content for being able to attract telecom customers. Spark said that were the merger to go ahead, Sky's sport content ownership would extend into Vodafone NZ's mobile and broadband offerings and "distort competition" in those segments -- including to the detriment of the New Zealand government's Ultra-Fast Broadband project. Spark said, "Sky/Vodafone will bundle a further, competitive, product (broadband and/or mobile) with its monopoly sports rights, and in doing so will reduce competition for that product." 2degrees, the third-largest telecom in New Zealand after Spark and Vodafone NZ, agreed, saying that "the acquisition of sports and entertainment media content would give it an unfair advantage in attracting and retaining customers across the mobile and home broadband segments" (ZDNET, 8/16). STUFF's Tom Pullar-Strecker wrote Sky Television "faces a big decision." That "is whether to offer Spark and other broadband companies some form of binding undertaking that would set out the terms on which they would be able to buy its Sky Sports programming after the merger." Such an undertaking "could go a long way towards addressing the concerns and objections that Spark, 2degrees and the Telecommunications Users Associations have all raised about the merger with country's competition watchdog." Depending on what was in such an undertaking, it "might make it much more likely the Commerce Commission would approve the merger." But "it could risk undermining Sky's entire business model" (STUFF, 8/16).
