ACCC approves Optus-TPG spectrum sharing agreement

The ACCC has approved a spectrum sharing agreement between Optus and TPG to enhance mobile services in regional Australia. Optus will use TPG’s spectrum, while TPG will decommission most of its sites and transfer some to Optus.

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The Australian Competition and Consumer Commission (ACCC) has approved a regional mobile network and spectrum-sharing agreement between Optus Mobile and TPG Telecom Limited. Under the agreement, Optus will utilise specific TPG spectrum to provide mobile services in defined regional areas of Australia. At the same time, TPG will decommission most of its sites in the coverage area and transfer some to Optus.

The agreement involves three interrelated contracts: a Multi-Operator Core Network (MOCN) Services Agreement, a Spectrum Authorisation Agreement, and a Site Transfer Agreement. The MOCN Services Agreement is for an initial term of 11 years, with an option for TPG to extend it by five years. The agreements will allow TPG to improve its coverage in regional areas, likely enhancing its competitive position and providing more choices for regional consumers.

The ACCC found that the proposed agreements are unlikely to lessen competition in the mobile services market substantially. The Commission noted that TPG currently has significantly less infrastructure and coverage in regional areas compared to Telstra and, to a lesser extent, Optus. The agreements are also anticipated to support Optus’ regional 5G rollout, particularly through access to TPG’s spectrum, thereby benefiting consumers in those areas.