Singtel-owned Optus, TPG Telecom get Australia competition regulator’s nod for network-sharing deal
The agreement makes TPG more competitive in retail and wholesale markets relative to Optus and Telstra, says the watchdog
THE Australian Competition and Consumer Commission (ACCC) on Thursday (Sep 5) said it will not oppose the proposed regional network and spectrum-sharing agreements between Singtel-owned Optus and Australian telco TPG Telecom.
The multi-operator core network (MOCN) tie-up allows TPG to access Optus’ regional radio access network, which connects devices such as smartphones to a larger network through a radio link. Most notably, it enables Internet access for gadgets.
More specifically, TPG will use Optus’ MOCN services through active mobile network infrastructure sharing to offer 4G and 5G retail and wholesale services in certain regional areas.
The companies will also share spectrum – a range of frequencies important for wireless connectivity – in regional Australia.
In metropolitan areas – where more than 80 per cent of Australia’s population resides – TPG and Optus will continue to operate their own mobile networks, the ACCC’s website indicated.
TPG will also transfer a number of its existing mobile sites in certain areas to Optus, with the rest expected to be decommissioned.
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Optus’ interim chief executive Michael Venter said the agreement will help the company speed up its 5G infrastructure roll-out to more regional communities, to the benefit of Optus and TPG’s customers.
The non-exclusive agreement, which is subject to regulatory approvals, has an initial term of 11 years and includes an option for TPG to extend the venture for five more years. The telcos expect the tie-up to be available to customers in early 2025.
This comes after the competition regulator rejected TPG’s network-sharing agreement with fellow Australian telco Telstra in December 2022, saying the deal would weaken competition in the country.
Optus, a wholly owned subsidiary of Singtel, welcomed the regulator’s decision then. It noted at the time that the outcome benefited Australia’s regional communities.
Conversely, the ACCC said on Thursday the arrangement between Optus and TPG was “not likely to substantially lessen competition in any relevant market”, and could narrow the competitiveness gap between TPG, and Telstra and Optus.
It added that TPG remained behind Telstra and Optus in “key competitive indicators in mobile services markets”, and the network arrangement will boost its retail and wholesale offerings.
The competition watchdog added that the arrangement could improve Optus’ ability to compete in Australia’s regional areas with its newfound access to TPG’s spectrum, as well as higher revenue.
Shares of Singtel ended 0.3 per cent or S$0.01 lower at S$3.14 on Thursday.
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