Foxtel boss Richard Freudenstein is talking up the economic benefits of the pay TV provider’s planned takeover of Austar as the competition watchdog mulls over the deal.

Mr Freudenstein says Foxtel’s proposed $2.5 billion takeover will create a company able to invest in the development of new technology and innovative products.

This, in turn, would in turn improve productivity in the economy, he said.

“I think that is one of the great advantages of having a big company, you have that ability to invest and innovate,” Mr Freudenstein told the Australian Subscription Television and Radio Association (ASTRA) annual conference in Sydney on Thursday.

“Over time we will be able to have a more united view on technology and a bigger investment in technology going forward.”

Foxtel in early March pledged not to lock in exclusive content, apart from premium sport, in a bid to win Australian Competition and Consumer Commission (ACCC) approval for the takeover, among other undertakings.

The ACCC was expected to rule on the proposed undertakings by March 29.

Austar has a shareholders’ meeting scheduled for March 30 and the regional pay TV company’s chief executive John Porter said he was hopeful of a positive outcome.

“While the ACCC is yet to hand down its decision, we are confident that we will have the right outcome ahead of next Friday’s shareholder vote,” Mr Porter said.

In what could be his last appearance at the ASTRA conference as Austar’s chief, Mr Porter took delegates through the pay TV company’s 17-year history.

He said Austar’s lack of scale in its early years meant some channel providers were unwilling to partner with Austar on developing interactive services.

And he took a swipe at government intervention in the media sector, rather than letting the market determine what was best.

Specifically, Mr Porter highlighted the “debacle” of the Australia Network tender, as well as the “massive lost opportunity” over the government’s convergence review.

“The government’s great risk is that unless they look at the full picture, someone will repaint the picture around their regulations,” Mr Porter said.

“Just like they have with online retail consumers, will vote with their wallets and choose internationally based content businesses.”

Should the takeover, which was first announced in May 2011, proceed, Mr Freudenstein said the two companies would be merged by June.