Australian mobile operators TPG Telecom and Optus welcomed a decision by the competition regulator not to oppose a proposed regional network and spectrum sharing deal the pair signed in April.

TPG Telecom CEO Inaki Berroeta stated the decision “marks a new era for mobile services competition and consumer choice” in rural and regional Australia, adding the arrangement means its mobile network will cover most towns in the nation.

Under the proposed regional multi-operator core network arrangement, Singtel-owned Optus will provide TPG Telecom with access to its regional RAN and the pair will share spectrum in regional Australia.

TPG Telecom will gain access to Optus’s regional network across 2,444 sites, increasing coverage to 98.4 per cent of the population.

Optus interim CEO Michael Venter said the deal will enable the rollout of 5G infrastructure to be completed about two years earlier than previously planned.

Limited reach
The Australian Competition and Consumer Commission (ACCC) argued the proposed agreements are unlikely to substantially reduce infrastructure competition from TPG Telecom, highlighting the competition impacts are likely to be limited to geographic areas where the operator is not currently a significant player and is unlikely to become one.

ACCC commissioner Philip Williams noted TPG Telecom has significantly less coverage in regional areas compared with 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.”

The non-exclusive agreement has an initial term of 11 years and includes an option for TPG Telecom to extend for five years. The deal is subject to final regulatory approvals, with the sharing arrangement expected to be available to customers in early 2025.

The ruling comes a year after a network sharing deal between TPG Telecom and Telstra was dropped over competition concerns.