TPG's move to acquire ISP iiNet is a net positive for competition in Australia's telco market, according to Vodafone.
"Australians pay some of the highest fixed line prices in the world and there is virtually no fixed line competition in regional Australia," Vodafone general manager, industry strategy and public policy, Matthew Lobb said.
"This is a significant drag on the economy."
"In a fixed market dominated by one player and structural barriers which protect it from competition, a combined TPG and iiNet would deliver national scale creating new competitive dynamics for more innovation, better service and better consumer outcomes," Lobb said.
The acquisition will boost TPG's broadband customer base to more than 1.7 million.
iiNet has 975,000 broadband customers including 60,000 NBN customers.
"The ACCC is aware of the proposed transaction," a spokesperson for the Australian Competition and Consumer Commission said.
"The ACCC will commence a public review after receiving a submission from the parties. We will call for submissions at that time and details will be posted on our public register.
"The ACCC reviews mergers and acquisitions which have the potential to raise concerns under the Competition and Consumer Act 2010. The CCA prohibits acquisitions that would have the effect, or be likely to have the effect, of substantially lessening competition in a market."