ACCC approves landmark Optus and TPG deal set to transform the rural mobile experience

The Australian Competition and Consumer Commission (ACCC) has decided not to oppose the three agreements between TPG and Optus, which are set to reshape mobile services in regional Australia.

This deal, which is made up of three different agreements – MOCN (Multi-Operator Core Network), Service and Spectrum Authorisation – is significant in three key ways according to an April statement from Optus that was reaffirmed this morning. Firstly, the majority of TPG sites will be decommissioned, with remaining sites being integrated into the Optus network – thus allowing Optus’ 5G rollout plans to be fast-tracked with 1,500 5G sites by 2028 and almost 2,444 by 2030.

Access to Optus’ network will also allow TPG to increase its 4G coverage from 400,000 to 1,000,000 square kilometres, reaching 98.4% of the population. And Optus’ licensing of TPG’s spectrum for use in the MOCN will increase capacity, quality and speed for both regional TPG and Optus customers.

Those living in metropolitan areas will be unaffected, as both TPG and Optus will continue separately as normal where more than 81% of Australians live.

The ACCC, by its very existence, considered the effects the agreement would have on competition of retail and wholesale mobile services in Australia but thought it was unlikely to “substantially” lessen competition.

As ACCC Commissioner Dr Philip 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 the term of this arrangement is likely to be greater than what TPG could have achieved on its own”.

While the ACCC has deemed this agreement to be absent “of particular competition concerns” due to TPG’s previously lacking footprint in regional Australia, this is a meteoric shift in the Australian mobile services landscape. 

So what does this actually mean for the regional consumer?

“The agreements will allow TPG to provide better coverage in regional areas, which will likely enhance its ability to compete during the term of the agreements, improving choice for regional consumers,” said Dr Philip Williams.

For years Telstra has offered the broadest coverage in Australia. That’s why a similar deal between Telstra and TPG back in 2022 was denied once by the ACCC and then again by the Australian Competition Tribunal after TPG and Telstra appealed the decision. 

Unlike the Telstra-TPG deal that would have given customers fewer legitimate choices, these agreements, as Optus said when this agreement was announced, offer “a new era of choice and competition for customers across regional Australia”. 

This deal between Optus and TPG “is a great outcome for regional Australia, with the rollout of 5G infrastructure to be completed by around two years earlier than previously planned,” said Optus’ CEO Michael Venter in a media release this morning.

“It will also provide Optus with access to more spectrum so regional customers can experience 5G’s fast speeds, low latency, and increased capacity. We are very excited to be able to progress this network-sharing agreement following today’s decision and to continue delivering for our regional customers.”

Steady mobile service connections are crucial to how we live, from browsing the web to video-calling families on the other side of the country or world, connecting via social media or accessing the best streaming services. Australians in metropolitan areas of the country have had these benefits for years, but those in more rural parts of Australia have had to get by with limited coverage and/or slow mobile data speeds. That should now be a thing of the past following this landmark agreement. Moreover, it could even see regional consumers benefit not only from more reliable connections but also from lower data costs as carriers compete for market share. This would likely include MVNOs that resell access to the main Optus and TPG networks.

With this 11-year agreement now in place and the potential for an extension, regional Australia is on the cusp of a transformative shift in regional connectivity. The accelerated rollout of 5G and expanded coverage not only enhances access but also fosters healthy competition, ensuring that consumers in regional areas benefit from faster speeds, improved service, and better pricing over the next decade.

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