TPG Telecom reached an agreement to offload much of its fixed infrastructure assets to Vocus Group for AUD5.3 billion ($3.6 billion), with the fibre company to provide network services back to Australia’s third-largest mobile player.

The transaction covers TPG Telecom’s fibre network infrastructure; Enterprise, Government and Wholesale fixed customer base; IT assets; international submarine cables; and Vision Network’s wholesale residential broadband business. The pair expect the transaction to be completed in the second half of 2025 after securing standard regulatory approvals.

Under a 15-year agreement, TPG Telecom will pay Vocus AUD130 million a year for access to its fibre assets.

The deal comes 14 month after initial negotiations failed, and about two months after the pair restarted discussions.

TPG Telecom CEO Inaki Berroeta explained the agreement “reflects a smaller asset perimeter compared with the original discussions” with Vocus in 2023, resulting in a simpler operating model than was first envisaged.

The operator added the proceeds will “support future capital management and business investment initiatives”, which it said have not been determined.

Vocus noted in a separate statement it will operate a network of more than 50,000km of fibre, nearly 15,000km of international submarine cables and about 20,000 connected buildings after the acquisition,.

The company will acquire TPG Telecom’s PPC-1 submarine cable which runs from Sydney to Guam.

Vocus is backed by Macquarie and pension fund Aware Super.