Telstra shares are on a tear

Torsten Blackwood/AFP/Getty Images

Shares in Telstra jumped after the ACCC (Australian Competition and Consumer Commission) rejected a proposal to allow other operators to use its mobile network in remote areas.

A short time ago, Telstra shares were up 5.2% to $4.45.

Domestic roaming would allow smaller operators such as Vodafone and TPG to use Telstra infrastructure in remote areas to supplement its own coverage, giving people in those locations alternatives to Australia’s biggest telco.

Telstra and Optus are opposed to the idea.

The ACCC made a draft decision today to disallow domestic roaming.

“There is insufficient evidence to suggest that declaration of a mobile roaming service in regional and rural areas would further lower prices or improve services, given the higher costs in servicing these areas,” said ACCC chair Rod Sims.

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