Optus, TPG win ACCC approval – Game changer for regional mobile coverage?

Optus and TPG's network-sharing deal just got the green light from the ACCC, and it's set to boost coverage and service for folks in regional areas.

Key takeaways

• Back in April 2024, Optus and TPG/Vodafone entered into a $1.6 billion deal to share network services across regional Australia by early 2025.
• The Australian Competition and Consumer Commission (ACCC) has finally said it will not stand in the way of this partnership.
• TPG will gain access to 2,444 Optus mobile network sites in regional Australia. Its 4G footprint will increase from 96% to 98.4% of the population.
• Regional Aussies will also benefit from Optus's plan to accelerate its 5G rollout by 1500 5G sites by 2028 and 2,444 by the end of 2030.

"The ACCC carefully considered the arrangement proposed by Optus and TPG, as it represents a structural change to the mobile services landscape," ACCC commissioner Dr Philip Williams said in a media release.

TPG currently has significantly less infrastructure and coverage in regional areas compared to 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 agreements are also likely to support Optus' regional 5G rollout, particularly through access to TPG's spectrum."

Good to know: Spectrum refers to the invisible radio frequencies that wireless signals travel over and help us make calls and more. And, all brands under TPG (including Vodafone, iiNet, felix and Lebara) will benefit from the partnership and 'improved services'.

How will the Optus, TPG partnership help those living in regional Australia?

People in regional areas usually have to choose their mobile plan carefully, often opting for one that relies on the Telstra network due to its extensive 4G and 5G coverage in Australia.

The Optus-TPG deal could potentially offer more options. However, we'll only know for sure how it unfolds once the changes officially start rolling out.

"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," said Kieren Cooney, Vodafone group executive, consumer.

With this network expansion, we will break the mobile duopoly that has limited customer choice in regional Australia for too long. We've listened to our customers and are excited to say Vodafone's coming to town.

Interestingly, the ACCC blocked a similar deal between TPG and Telstra, noting it would not benefit regional Australians as it would lessen competition given Telstra already offers the most extensive network coverage.

ACCC green light to help accelerate 5G rollout

With the 3G network shutting down soon, the rollout of 5G is becoming a major focus. For Optus, the approval from ACCC is a huge boost for its plans.

"Today's ACCC 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," Optus interim CEO Michael Venter said.

"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.

The non-exclusive Optus-TPG agreement will be in place for 11 years and includes an option for TPG Telecom to extend the agreement for a further five years.