Optus, TPG sign billion-dollar deal in rural swipe at Telstra

TPG customers in regional Australia will gain access to nearly 2500 Optus mobile towers under a proposed billion-dollar network-sharing deal announced between the rival telcos on Monday.

Under then terms of the agreement, which would begin in early 2025, TPG would pay Optus about $1.6 billion in fees across the 11-year term while Optus would pay TPG about $400 million to use some of its unused network spectrum. The two companies would maintain control over their own core networks and continue to operate their own networks in metropolitan areas.

“We will be a very viable alternative for a lot of customers that in the past did not have this choice, so I think this is great news for them.” “We have a real focus now on restoring resiliency of the network and ensuring that it doesn’t happen again,” he said. ”So the teams have done an inordinate amount of work to reconfigure parts of the network and make sure that we’re able to restore quicker if a similar event occurs again in the future. So that’s where the main focus has been, and a number of green shoots are appearing. Our customer numbers are looking OK. I always want them to be higher, but they’re not too bad.

In its decision, the tribunal said the proposed transaction was likely to limit TPG’s ability and incentives to compete strongly with Telstra, and that it would be likely to have had a negative impact on the likelihood of Optus further rolling out 5G across the nation, ultimately reducing competition.

“We see strong economic incentives for TPG and Optus to collaborate in continuing to roll out a second 5G network into regional Australia,” Carver said in December 2022. Optus vice president of regulatory and public affairs Andrew Sheridan said in 2023 that collaboration between Optus and TPG would “make sense” and that “there’s every opportunity for some form of sharing arrangement to be negotiated in the future”.

Source: News Formal (newsformal.com)

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