TPG and Optus have signed a $1.6 billion deal to share mobile networks across regional Australia that the companies believe will improve coverage, increase competition and reduce the cost of the 5G rollout.
Under the 11-year regional multi-operator core network agreement, TPG will pay Optus a service fee to access 2,444 of it's mobile network sites that will then allow TPG sub brands Vodafone, iiNet and Lebara to use Optus 4G and 5G networks across regional Australia.
The active network sharing arrangement will bring together two largely duplicated regional networks to deliver a total bigger network with more capacity for customers of both Optus and TPG - the second and third largest carriers in Australia respectively behind Telstra.
Optus Interim CEO Michael Venter said the deal would also reduce combined 5G network rollout costs in regional Australia and accelerate the rollout of 5G infrastructure by two years earlier than previously planned.
"For over 30 years Optus has brought choice and competition to Australia through investment in network services and infrastructure. This is a win for all Australians, especially our regional communities, businesses, and visitors," Mr Venter said.
"Optus and TPG Telecom will be positioned to provide consumers with more choice and better services as we accelerate our investment in the regions."
The non-exclusive MOCN agreement includes an option for TPG to extend the arrangement for a further five years.
TPG Telecom CEO Iaki Berroeta said the network sharing agreement would "reset" the competitive landscape for mobile services in regional areas by increasing the telco's coverage area and reducing costs through not having to duplicate infrastructure.
"This will allow us to reduce rollout and operating costs, make better use of network assets and deliver huge customer benefits," he said.
"In a country as large as Australia, this is the sustainable approach we need to maximise established infrastructure, and expand the reach of telecommunications services, competition and choice for consumers."
The deal builds on an existing passive equipment sharing joint venture between the companies, which includes around 3,500 sites in metropolitan areas.
