PROJECTS

Advice to Spark on Proposed Telco-Pay TV Merger, New Zealand

The problem

Spark is New Zealand’s largest telecommunication retail service provider. Competitors SKY Television (pay-tv) and Vodafone (telecommunication) were seeking to create an integrated telecommunication and media group in New Zealand. However, Spark was concerned that a merged entity would have significant market power and undermine competition in the telecommunications market, as SKY had a monopoly on premium sports content in New Zealand.

How we helped

We provided Spark with analysis that formed critical evidence in identifying the likely impact of the merger. We developed a market model and presented this model to the Commerce Commission (New Zealand’s competition authority). Castalia’s analysis helped convince the Commerce Commission that the merger was anti-competitive.

Impact

The merger was not allowed to proceed, and market competition was not undermined.

Our team

Alex Sundakov

Alex Sundakov

Executive Director

How can we help you?

How can we help you?