TPG and Optus will establish a regional multi-operator core network in Australia
Australia’s TPG Telecom has entered a long-term network sharing deal with Singtel-owned Optus eight months after it failed to secure one with Telstra due to regulatory hurdles. The operators will continue to operate their own core networks, they said, allowing them to each maintain network, security and resiliency control, as well as enable differentiation of service for their customers.
As part of the deal, the pair will establish a regional multi-operator core network. Optus will license some of its rival’s spectrum for use in the shared network, while TPG will gain access to Optus’ regional 4G and 5G networks. Specifically, TPG will be able to use 2,444 Optus sites in regional Australia, which according to the operator, doubles its national coverage and extends its 4G and 5G reach to 98.4% of the population. The deal will also significantly increase the number of regional mobile sites in the country.
“This network sharing arrangement will reset the competitive landscape for mobile services in regional areas and provide Australians with more choice than ever before,” commented TPG Telecom CEO Iñaki Berroeta. “This will allow us to reduce rollout and operating costs, make better use of network assets and deliver huge customer benefits … In a country as large as Australia, this is the sustainable approach we need to maximise established infrastructure, and expand the reach of telecommunications services, competition and choice for consumers.”
Last year, Telstra and TPG Telecom said they would not appeal the country’s competition tribunal’s decision to block an asset transfer deal between the two companies; however, at the time, TPG also stated that it will continue to “explore commercial options to expand its mobile network, which currently reaches 96% of Australia’s population.”
The new deal with Optus has an initial term of 11 years, with the option for TPG Telecom to extend the agreement for a further five years. It is subject to relevant regulatory approvals, and the shared network is expected to be available to customers early next year.
