Telstra has pulled its $60 million bid to acquire South Australian budget Internet service provider, Adam Internet.
The move comes after the deal – announced last October – failed to be approved of the Australian Competition and Consumer Commission.
In January, the watchdog listed a number of concerns with the agreement, the foremost being its impact on Australia’s budget internet service provider landscape.
Concerns were raised by the telco’s rivals that it would use Adam Internet to corner the budget ISP market and would therefore have a leading stake in both Australia’s premium and budget internet services market.
In a statement, Telstra chief customer officer Gordon Ballantyne said the telco had to cut the deal after failing to win back the ACCC’s approval before the contractual end date.
“We are very disappointed by this outcome,” Mr Ballantyne said.
“We believe this transaction would have provided real benefit to Australian consumers and would have added new competition into the broadband market.”
The telco is yet to confirm whether it will push forward with its plans to enter the budget ISP market.
Such an agenda could see the telco launch its own separate brand rather than attempt to acquire another company.