(Reuters) -The Australian Competitors & Shopper Fee (ACCC) on Wednesday rejected TPG Telecom’s regional network-sharing settlement with Telstra (OTC:) Group, and stated the deal would considerably weaken total competitors within the nation.

TPG’s shares tanked practically 6% to a document low following the information, whereas Telstra slipped 0.1%. The broader market, in the meantime, was up greater than 1%.

In February, the telecom giants signed a regional multi-operator core community settlement underneath which Telstra — the nation’s largest telecoms operator — would acquire entry to TPG’s 4G and 5G spectrums.

ACCC stated it has seemed past the short-term advantages and value financial savings for TPG and Telstra from the deal, and concluded that the deal would go away Australian cell customers “worse off over time, when it comes to value and regional protection”.

TPG and Telstra expressed disappointment with the competitors regulator’s choice, which the latter stated it will attraction towards, whereas rival telecoms agency Optus — owned by Singapore Telecommunications — welcomed it.

TPG — the nation’s No. 2 web providers supplier — stated it was making ready an utility for a overview of the choice.

ACCC famous the network-sharing association is proposed at a time when all of the three firms — TPG, Telstra and Optus — are competing within the roll-out of 5G infrastructure together with in regional areas.

“We think about that there’s a actual threat that TPG and Optus will make investments much less in essential infrastructure than they might if the proposed preparations don’t proceed.”

ACCC’s transfer additionally comes at a time when all of the three corporations have suffered knowledge breaches this yr, endangering delicate info of tens of millions of individuals.

TPG stated it will now not recognise any monetary impacts of the settlement in its fiscal 2022 outcomes.