ACCC gives the Optus-TPG network-sharing deal the green light

By Dylan Crismale

Last updated 05 September 2024

The ACCC has announced it will not oppose the Optus and TPG network-sharing agreement.

As part of its decision the ACCC weighed the impacts of the agreement and determined that it was "unlikely to substantially lessen competition".

ACCC Commissioner Dr. Phillip Williams said "The ACCC carefully considered the arrangement proposed by Optus and TPG, as it represents a structural change to the mobile services landscape."

"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 Multi Operator Core Network (MOCN) network-sharing deal will improve coverage for Optus and Vodafone network customers in regional Australia. The agreement will allow mobile customers on with TPG brands: Vodafone, TPG, iiNet, felix, Lebara (and those that use its network like Kogan) to use the Optus network in regional Australia.

Optus Interim Michael Venter CEO said "Today’s ACCC’s decision is a great outcome for regional Australia, with the rollout of 5G infrastructure to be completed by around two years earlier than previously planned."

"This arrangement will 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."

Vodafone Group Executive Kiernen Cooney said "This is a huge win for customers and regional Australia, with our award-winning mobile services soon to be available in thousands of holiday destinations and regional communities across the country."

"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."

TPG will gain access to 2,444 Optus network sites in regional Australia which will see its 4G footprint expand to cover 98.4% of the population. The Vodafone 4G network currently reaches 96% of the population. Optus' network reaches 98.5% of the population.

Optus will gain access to some of TPG's mobile spectrum to enhance its connectivity in regional Australia. Essentially both Optus and TPG mobile customers will have the same connectivity experiences in regional Australia.

The change should come into effect in early 2025. If the partnership is successful, TPG has the option to extend it by five years.

TPG had previously tried twice to enter a network-sharing agreement with Telstra , but it was rejected by the ACCC on the grounds it would have a negative impact on the market by reducing competition.

While the ACCC found the Optus and TPG agreement is unlikely to substantially affect competition it did note that it is a significant change in the Australian mobile market and will continue to monitor any new developments.

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