Optus and TPG (ASX:TPG) have received approval from the competition regulator, the ACCC, which should lead to improved mobile services across much of rural and regional Australia.
The approval, announced on Thursday, allows Optus and TPG (which also owns Vodafone) to proceed with their regional network and spectrum sharing plans.
TPG, in particular, is expected to market its mobile phone services to more Australians once the sharing deal is operational.
The two telecommunications companies have entered into three agreements related to mobile services in regional areas. These agreements will see Optus using certain TPG spectrum to provide mobile services, while Optus will supply TPG with network services. TPG will decommission most of its sites in the coverage area, with some being transferred to Optus.
Both companies will continue to operate their own networks in metropolitan areas.
The ACCC’s approval comes just over a year after the Australian Competition Tribunal upheld the Commission's decision to block a network sharing arrangement between Telstra and TPG.
The agreements will enable TPG to offer better coverage in regional areas, likely enhancing its competitive position and improving choices for regional consumers, according to ACCC Commissioner Philip Williams.
"The agreements are also likely to support Optus' regional 5G rollout, particularly through access to TPG's spectrum," Williams said.
"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 this arrangement is likely to exceed what TPG could have achieved on its own," he added.
The ACCC stated on Thursday that it had determined the proposed agreements were unlikely to substantially reduce infrastructure competition from TPG.
"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," the ACCC said.
"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 concluded.
