‘Higher-quality mobile services and lower prices’: TPG and Optus to team up in regional Australia
The ACCC has given the green light to a proposed network sharing deal between TPG Telecom and Optus that will give regional consumers more choice and greater coverage in the bush.
A similar network sharing deal between TPG and Telstra that was originally floated, was shut down by the competition regulator in December 2022 due to monopoly concerns.
Allowing the country’s number two and three telcos to team up in regional Australia, however, is “unlikely to substantially lessen competition”, the ACCC believes, while forcing market leader Telstra to offer better deals and coverage.
Under the regional mobile network and spectrum sharing agreements, Optus will use certain TPG spectrum to supply mobile services in regional areas, and Optus will in turn provide TPG with network services in those areas. TPG will decommission most of its sites in the coverage area, while some will be transferred to Optus.
The pair will operate their own separate mobile networks in the cities — where the ACCC notes 81.6% of Australia’s population live.
“The ACCC carefully considered the arrangement proposed by Optus and TPG, as it represents a structural change to the mobile services landscape,” ACCC commissioner Dr 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.”
“The agreements are also likely to support Optus’ regional 5G rollout, particularly through access to TPG’s spectrum.”
The ACCC found the network sharing is limited to geographic areas where ‘TPG is not currently a significant competitor and is unlikely to become one in the future”.
“TPG currently has significantly less infrastructure and coverage in regional areas compared to Telstra and to a lesser extent Optus,” Williams said.
“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.”
Williams also said promoting competition for mobile services in regional areas can “help deliver higher quality mobile services and lower prices for consumers.”
Optus interim CEO Michael Venter said the deal would “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.”
“This is so important for customers given how essential mobile services are to our daily lives, whether it’s browsing the internet, connecting with friends and family on social media or streaming our favourite movies and TV shows.
“We are very excited to be able to progress this network sharing agreement, and to continue delivering for our regional customers.”
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