Optus and TPG’s 11-year network sharing agreement has achieved clearance from the competition regulator.
The Australian Competition and Consumer Commission said it “will not oppose the proposed regional mobile network and spectrum sharing agreement” – an arrangement it had suggested was feasible in denying a similar arrangement between TPG and Telstra.
Services are proposed to start in “early 2025” and covers both 4G and 5G.
The deal will cover three specific agreements. One is TPG authorising Optus to use certain spectrum in defined regional areas in the 700MHz, 1800MHz, 3600MHz and 3700MHz bands.
The second is Optus providing TPG with network services by way of active mobile network infrastructure sharing in certain regional areas.
Lastly, TPG will also transfer to Optus or decommission a number of its existing mobile sites in the coverage area.
However, suggestions made during ACCC’s review of the agreement will not be made obligatory on either party.
These included that “Optus and TPG should provide open wholesale access to their networks, divest certain spectrum, and make obligations to undertake certain regional investments”.
“In the absence of particular competition concerns about the proposed arrangement, these proposals are better considered through other policy and regulatory processes,” said ACCC commissioner Dr Philip Williams.
TPG Telecom and Optus first announced their agreement to share regional spectrum and mobile network infrastructure in April, after TPG’s previous attempt to do the same with Telstra fell through.
The likelihood of TPG and Optus being able to agree to terms was used by the ACCC to scuttle the TPG and Telstra deal.
Williams noted that TPG currently has significantly less infrastructure and coverage in regional areas compared to Telstra and to a lesser extent Optus.
“The improvement in TPG’s services during the term of this arrangement is likely to be greater than what TPG could have achieved on its own,” he 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.”
Meanwhile, he added, the deal will “support Optus’ regional 5G rollout, particularly through access to TPG’s spectrum”.
In a statement to the ASX [pdf], TPG CEO Iñaki Berroeta said the deal will allow TPG and its brands “to win and retain customers in the cities who need reliable mobile service when they travel to the bush and customers in the regional areas looking for a different choice of provider.”
Meanwhile, Optus interim CEO Michael Venter said the deal will let the telco “press the fast-forward button on 5G infrastructure rollout 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,” he added.