Optus and TPG had entered into three agreements that relate to the provision of mobile services in Australia
The Australian Competition and Consumer Commission (ACCC) will not oppose the proposed regional mobile network and spectrum sharing agreements between local carriers Optus Mobile Ltd and TPG Telecom.
Optus and TPG had entered into three agreements that relate to the provision of mobile services in certain regional coverage areas in Australia. In these areas, Optus will use TPG spectrum in the 700 MHz, 1800 MHz, 3.6 GHz and 3.7 GHz bands, while Optus will provide TPG with network services. Under the agreements, TPG will decommission most of its sites in the coverage area, while some will be transferred to Optus.
The deals also stipulate that TPG and Optus will continue to operate their own mobile networks in metropolitan areas where 81.6% of Australia’s population live.
The ACCC said in a release that it had considered the effects of the agreements on competition for retail and wholesale mobile services in Australia, adding that it found that the agreements are unlikely to substantially lessen competition. “The ACCC carefully considered the arrangement proposed by Optus and TPG, as it represents a structural change to the mobile services landscape,” ACCC Commissioner Philip Williams said. “The agreements will allow TPG to provide better coverage in regional areas, which will likely enhance its ability to compete during the term of the agreements, improving choice for regional consumers,” he added.
Williams also noted that the agreements are likely to support Optus’ regional 5G rollout, particularly through access to TPG’s spectrum.
The ACCC found that the proposed agreements are unlikely to substantially reduce infrastructure competition from TPG. The competition impacts of the agreements are likely to be limited to geographic areas where TPG is not currently a significant competitor and is unlikely to become one in the future, the regulator said.
The agreement between the telcos has an initial term of 11 years and includes an option for TPG Telecom to extend the agreement a further five years.
Subject to remaining regulatory approvals, the deal is expected to be available to TPG and Optus customers in early 2025.
In a release, Optus noted that the regional customers will benefit from the telco’s plans to accelerate 5G rollout in the regions, fast-tracking the number of 5G sites in those areas to 1,500 by the end of 2028 and 2,444 by the end of 2030.
Optus Interim CEO Michael Venter said: “CCC’s decision is a great outcome for regional Australia, with the rollout of 5G infrastructure to be completed by around two years earlier than previously planned. … This arrangement will allow Optus to press the fast forward button on 5G infrastructure roll-out to more regional communities. It will also provide Optus with access to more spectrum so regional customers can experience 5G’s fast speeds, low latency, and increased capacity,” Venter said.
