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The Australian Competition and Consumer Commission (ACCC) has not opposed a regional mobile network and spectrum sharing arrangement between Optus and TPG.
Struck in April, the arrangement revolves around Optus providing TPG with access to its regional radio access network. At the same time, TPG will offer certain spectrum to Optus to supply mobile services.
Additionally, TPG will decommission most of its sites in the coverage area while some will be transferred to Optus.
Both telcos will continue to operate their respective mobile networks in metropolitan areas.
According to the ACCC, the arrangement is unlikely to substantially lessen competition.
“The ACCC carefully considered the arrangement proposed by Optus and TPG, as it represents a structural change to the mobile services landscape,” ACCC Commissioner Philip Williams said.
“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 agreements are also likely to support Optus’ regional 5G rollout, particularly through access to TPG’s spectrum.”
Additionally, the ACCC also found that the competition aspects of the arrangement is likely limited to areas where TPG is not “currently a significant competitor and is unlikely to become one in the future”.
“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,” Williams said.
During the review of the arrangement, the ACCC claimed market participants said that Optus and TPG should provide open wholesale access to their networks, divest certain spectrum and make commitments to regional investment.
“Policies and regulations which promote competition for mobile services in regional areas can help deliver higher quality mobile services and lower prices for consumers,” Williams said.
“However, in the absence of particular competition concerns about the proposed arrangement, these proposals are better considered through other policy and regulatory processes.”
The arrangement however is still subject to additional regulatory approvals and, if granted, would come into effect in early 2025.
In an announcement to the Australian Securities Exchange (ASX), TPG welcomed the decision, with its CEO, Inaki Berroeta, saying that the decision “marks a new era for mobile services competition and consumer choice in rural and regional Australia”.
“With this arrangement, for the first time the TPG Telecom mobile network will cover most towns in Australia,” he said.
In a separate statement, Optus interim CEO Michael Venter said the decision “was 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,” he added.
The arrangement between TPG and Optus comes years after the former signed a network sharing deal with Telstra in February 2022. Then, 10 months later, the Australian Competition and Consumer Commission (ACCC) refused to authorise the proposed deal, claiming a potential negative impact on coverage, network quality and innovation.
Six months after that in June 2023, the Australian Competition Tribunal agreed with the ACCC’s decision and said it was not satisfied that the arrangements were not likely to substantially lessen competition.
In response to the Tribunal’s decision, Berroeta said at the time that TPG would not give “up on regional Australia and will consider our options as well as advocating for policy reform that will deliver greater competition and choice in the regions that need it most”.