‘Huge win’ for regional Australia: ACCC approves TPG and Optus’ $1.6b network-sharing deal

The competition regulator will not stand in the way of TPG and Optus’ $1.6 billion network-sharing deal in what has been described as a huge win for customers across regional Australia.

The 11-year deal set to begin early next year will see TPG — which operates the Vodafone and iiNet brands — gain access to about 2444 Optus mobile network sites, and boost its 4G footprint from 96 per cent to 98.4 per cent of the Australian population.

Vodafone group executive Kieren Cooney described it as a “huge win for customers and regional Australia”.

“This will be a game-changer for the millions of Australians in our cities and regions who want great value and mobile coverage when travelling to all the places we love to visit,” he said.

“With this network expansion we will break the mobile duopoly that has limited customer choice in regional Australia for too long. We’ve listened to our customers and are excited to say Vodafone’s coming to town.”

TPG will pay Optus about $1.17b over the 11-year term, which it said represented around one-third of what TPG would have had to pay to build, operate and maintain a similar network in regional Australia.

The deal will expand listed TPG’s coverage by about 600,000 square kilometres.

Places like Cloncurry and Thursday Island in Queensland; Lachlan in Tasmania and Wattle Flat in NSW will have 4G and later, 5G connectivity on the TPG network.

Destinations like Coober Pedy in SA; and Coral Bay and Cape Range National Park in WA will go from 3G to 4G.

The Australian Competition and Consumer Commission last year knocked back a similar network-sharing partnership between TPG and Telstra based on competition issues.

But the ACCC on Thursday found the TPG-Optus deal would unlikely substantially reduce 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.

“The agreements are also likely to support Optus’ regional 5G rollout, particularly through access to TPG’s spectrum.”

TPG chief executive Iñaki Berroeta said the decision marked a new era for mobile services competition and consumer choice in rural and regional Australia.

“With this arrangement, for the first time the TPG Telecom mobile network will cover most towns in Australia,” he said.

Optus interim chief executive Michael Venter said the deal would fast-track the number of 5G sites in the regions to 1500 by the end of 2028, and 2444 by 2030.

“This arrangement will allow Optus to press the fast forward button on 5G infrastructure roll-out to more regional communities,” he said.

“It will also provide Optus with access to more spectrum so regional customers can experience 5G’s fast speeds, low latency, and increased capacity.”