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TPG Telecom, Optus ink network sharing deal

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In Short:

Australia’s TPG Telecom and Singtel’s Optus Mobile (Optus) have signed a network-sharing agreement to improve coverage in regional areas. TPG will have access to Optus’ mobile network sites, expanding its 4G coverage to 1,000,000 square kilometres. Optus will use TPG’s spectrum to enhance capacity and speed. The agreement will accelerate the rollout of 5G in regional areas, benefiting both companies and customers while reducing costs.

TPG Telecom and Optus Sign Network Sharing Agreement to Expand Coverage in Regional Australia
Australia’s TPG Telecom and Singtel’s Optus Mobile have officially announced the signing of a network-sharing agreement aimed at enhancing regional mobile network coverage in Australia. The agreement involves a Multi-Operator Core Network (MOCN) collaboration, with Optus granting access to its regional radio access network to TPG Telecom, as well as spectrum sharing in regional Australia, as stated by Optus on Monday.

Benefits of the Network Sharing Agreement

Through this agreement, TPG Telecom will be able to utilize 2,444 Optus mobile network sites across regional Australia, significantly expanding its current 4G coverage from 400,000 square kilometers to 1,000,000 square kilometers and reaching 98.4 percent of the population.

Simultaneously, Optus will leverage some of TPG’s spectrum within the MOCN framework to enhance capacity, speed, and service quality for both TPG and Optus customers in regional Australia.

Accelerating 5G Rollout in Regional Areas

Moreover, the agreement includes plans for an accelerated 5G rollout in regional areas, aiming to deploy 1,500 5G sites by 2028 and 2,444 by 2030, benefiting customers and communities with improved network capabilities.

Upon implementation, TPG Telecom‘s retail and wholesale customers, such as Vodafone, TPG, iiNet, Lebara, and felix, will have access to Optus’s 4G and 5G regional networks on par with Optus customers.

Operational Independence and Enhanced Service

Under the terms of the agreement, both Optus and TPG will maintain operational independence by managing their own core networks, ensuring control over network operations, service differentiation, and security. Additionally, both companies will retain control over their respective 4G and 5G networks in metropolitan areas.

“The collaboration is expected to reduce overall 5G network rollout costs in regional Australia, enabling an earlier completion of 5G infrastructure by two years,” as stated by Optus.

TPG Telecom expressed its confidence that the network-sharing agreement will expand its mobile network coverage across Australia, foster customer growth in both regional and metropolitan areas, and deliver significant cost efficiencies compared to duplicating infrastructure.

Existing Infrastructure Sharing

This new agreement builds upon an existing passive equipment-sharing joint venture between TPG Telecom and Optus, encompassing approximately 3,500 sites in metropolitan areas.

The non-exclusive MOCN agreement is set to run for an initial term of 11 years, with an option for TPG Telecom to extend it for a further five years. The service is projected to be available to customers of both companies in early 2025, pending necessary regulatory approvals.

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