It certainly has been an eventful year for the TPG Telecom Ltd (ASX: TPM) share price.
During the year the telco company's shares have been as low as $5.03 and as high as $9.65. From its low to its high is a difference of almost 92%.
Right now the company's shares are trading closer to their 52-week low than their 52-week high at $6.44,
Is the TPG Telecom share price in the buy zone?
While I think TPG Telecom's shares would be good value if the merger with Vodafone Australia goes ahead, at this stage it is unclear whether that will be the case after the ACCC voiced its concerns.
ACCC chair Rod Sims suggested that removing TPG Telecom as a new independent mobile competitor would substantially lessen competition.
He said that a mobile market "with three major players rather than four is likely to lead to higher prices and less innovative plans for mobile customers."
Mr Sims also had concerns with the loss of Vodafone as a competitor in the fixed broadband market.
The ACCC believes that Vodafone has the potential to become an increasingly effective competitor thanks to its high level of brand recognition and existing retail mobile customer base.
In light of this uncertainty, I intend to sit this one out until the ACCC makes its final decision at the end of March.
Though, it is worth noting that TPG Telecom has stated that it remains confident the merger will go ahead as planned. In addition to this, the ACCC previously had concerns over its acquisition of iiNet before letting it go ahead.
What about other telcos?
As well as staying clear of TPG Telecom, I intend to hold off investments in rivals Telstra Corporation Ltd (ASX: TLS) and Vocus Group Ltd (ASX: VOC) until the ACCC makes it decision.
As the decision is likely to have a major impact on the whole industry, I think the best thing to do is to hold fire until you can make an informed investment decision.
