The competition watchdog is set to approve an $800 million deal in which Optus will move some of it customers onto the national broadband network.
The deal between Optus and NBN Co will involve the migration of customers on the telco's fixed-line broadband network onto the NBN, and the decommissioning of some of that Optus network.
The Australian Competition and Consumer Commission's said on Monday it proposes to authorise the agreement, as the positives for consumers outweighed any benefits brought by Optus competing with the NBN.
The deal would eliminate the costs to Optus of operating fixed-line broadband alongside the NBN, and lower the cost of moving consumers onto the NBN, the ACCC said.
It also found that Optus was unlikely to extend its network beyond its current 1.4 million homes, or upgrade to significantly faster speeds, the ACCC said.
A reduction in direct competition for the NBN is also partly offset by the strong incentives the NBN will have to respond to customer needs under its regulatory framework, the ACCC said.
Optus chief executive Paul O'Sullivan said the deal would allow the telco to offer better products to customers.
"ACCC approval will pave the way for a genuine win-win deal, freeing up resources that can be used more effectively to open up retail competition on a single advanced network that covers the country," chief executive Paul O'Sullivan said in a statement.
Telstra earlier this year cemented its $11 billion deal with the NBN, which will allow NBN Co to utilise the Telstra network as part of the rollout.