TPG and Optus regional mobile network and spectrum sharing agreement

TPG Telecom Limited (ASX:TPG) has reached an agreement with Optus Mobile Pty Ltd for regional mobile network and spectrum sharing. The agreement involves Optus using certain TPG spectrum to provide mobile services in specific regional coverage areas, while TPG will receive network services from Optus. This collaboration aims to improve coverage in regional areas and support Optus' regional 5G rollout, ultimately enhancing competition and choice for regional consumers.

ACCC's assessment of the agreement

The ACCC has carefully considered the proposed regional mobile network and spectrum sharing agreements between Optus and TPG. ACCC Commissioner Dr Philip Williams stated that the agreements are unlikely to substantially lessen competition and are expected to improve TPG's ability to compete in regional areas. The collaboration is also anticipated to support Optus' regional 5G rollout, particularly through access to TPG's spectrum. Dr Williams highlighted that the competition impacts of the agreements are likely to be limited to geographic areas where TPG is not currently a significant competitor and is unlikely to become one in the future.

Summary of TPG and Optus agreement

TPG's agreement with Optus for regional mobile network and spectrum sharing is set to enhance coverage in regional areas and support Optus' regional 5G rollout. The collaboration aims to improve competition and choice for regional consumers. The ACCC's assessment indicates that the agreements are unlikely to substantially lessen competition and are expected to have limited competition impacts in areas where TPG is not a significant competitor. The 11-year agreement, with an option to extend by five years, represents a significant change in the structure of the mobiles market. TPG will continue to be monitored as part of the telecommunications functions to ensure the agreement's compliance and impact on the market.