TPG signs 11-year regional network sharing agreement with Optus – ARN

Specifically, TPG will gain access to 2,444 Optus mobile network sites in Australia, more than doubling its current national 4G coverage from approximately 400,000 square kilometers to approximately 1 million square kilometers. 98.4% of the country’s population.

In addition, Optus will license part of TPG’s spectrum for use in MOCN to improve capacity, speed and service quality. Customers will also benefit from its commitment to accelerate the rollout of 5G in these regions, which will take the number of 5G sites within MOCN 10 to 1,500 by 2028 and 2,444 by the end of 2030, according to a statement from Optus.

The contract, which will initially run for 11 years with an option to extend for five years, is expected to be available to TPG and Optus customers in early 2025.

Optus interim chief executive Michael Venter said the agreement was a “significant win” for regional Australia.

He said: “This agreement will reduce the comprehensive deployment cost of 5G networks in rural Australia, which will enable the deployment of 5G infrastructure to be completed two years earlier than previously planned.”

Meanwhile, TPG Telecom chief executive Inaki Berroeta said the network sharing agreement will “significantly” expand the telco’s mobile network coverage in Australia and can “significantly reduce costs” to provide coverage to customers because there is no need to duplicate infrastructure. .

“This network sharing arrangement will reshape the competitive landscape for mobile services in regional areas and provide Australians with more choice than ever before,” he added.

This is not the first time TPG has tried to strike a network sharing agreement with a major telecommunications company, having previously signed a 10-year deal with Telstra in February 2022.Refusing to authorize the proposed transaction citing potential negative impacts on coverage, network quality and innovation

Then in June 2023, the Australian Competition Tribunal agreed with the ACCC’s decision, stating that it was dissatisfied that the arrangements were unlikely to significantly reduce competition.

Responding to the court’s ruling, Bellota said at the time that TPG would not abandon “regional Australia and will consider our options and advocate for policy changes to bring more competition and choice to areas that need it most.”

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