TPG Telecom announced that the Australian Competition and Consumer Commission has cleared its regional network-sharing arrangement with Optus.
The arrangement will create a regional Multi-Operator Core Network, significantly enhancing mobile service coverage in rural and regional Australia.
TPG Telecom CEO Iñaki Berroeta described the ACCC's decision as a landmark moment for the company and regional customers.
"We are pleased with today’s decision and thank the ACCC for its consideration of our regional network sharing arrangement which will bring much needed competition to rural and regional areas," Berroeta said.
The Multi-Operator Core Network will allow TPG Telecom to access Optus' regional mobile network across 2,444 sites.
This will boost TPG Telecom's network coverage to 98.4% of the Australian population, including access to Optus’s 4G and future 5G networks.
TPG Telecom will provide 4G and 5G services to new areas, benefiting customers of Vodafone, TPG, iiNet, Internode, Felix, and its MVNO partners.
The collaboration will utilise both companies' spectrum, enhancing service quality and speeds.
Berroeta emphasised the strategic advantages, stating, "Our regional network sharing arrangement will deliver better service and coverage to our five and a half million mobile customers who will gain access to around 600,000km2 of new coverage, more than doubling the size of TPG Telecom’s national mobile network."
The financial impact of the arrangement was detailed in a previous announcement on April 29.
TPG Telecom's total payments to Optus are estimated at approximately $1.17 billion over the 11-year term, which is lower than the cost of independently developing a similar regional network.
The expanded network is expected to be operational by early 2025.