TPG and Vodafone announced the merging of the two companies to form a third major telco which will challenge leaders Telstra and Optus.

This move is positive news for the market as the likelihood of a mobile price war is expected to be reduced, stabilising ARPUs and margins. 

However, consumers are going to miss out on what would have been aggressive mobile pricing from TPG to win market share.

TPG and Vodafone have formally announced that they are merging just a week after confirming to the media their intentions to combine in a “proposed merger of equals”. This is a strategic complementary move by both companies to better challenge market leaders Telstra and Optus as a full-service telecommunications company. The merging of products and services from both TPG and Vodafone will create a stronger portfolio of solutions for consumers, SMBs and enterprises.