The Australian Competition and Consumer Commission (ACCC) has said it will okay the proposed regional mobile network and spectrum-sharing agreements between Optus Mobile and TPG Telecom, citing a lack of significant competition concerns. The ACCC’s decision reflects the belief that the agreements will benefit consumers in regional areas without diminishing market competition.
The ACCC’s proposed approval stems from several key findings during its review. First, the agreements are expected to improve mobile service coverage in regional areas, particularly for TPG, which currently has significantly less infrastructure in these regions than its competitors Telstra and Optus. Optus will use TPG’s spectrum to provide mobile services in regional coverage areas, while TPG will benefit from network services provided by Optus.
The ACCC concluded that this arrangement will not substantially lessen competition because TPG is not currently a significant player in regional mobile services, nor is it likely to become one independently.
According to ACCC Commissioner Dr. Philip Williams, the agreements will enhance TPG’s ability to compete in regional areas during the term of the arrangement, offering more choices to consumers without undercutting competition.
Highlights of TPG-Optus agreements
# TPG will be authorising Optus Mobile to use certain TPG spectrum in defined regional areas in the 700 MHz, 1800 MHz, 3600 MHz and 3700 MHz bands.
# Optus will be providing TPG with network services by way of active mobile network infrastructure sharing in certain regional areas, in which around 17 percent of the Australia population reside.
# TPG will transfer to Optus or decommission a number of its existing mobile sites in the Coverage Area.
A key factor in the ACCC’s decision is that the agreements will likely help TPG achieve better coverage than it could on its own, enhancing its regional services and competitive position. The deal also aligns with Optus’ plans to accelerate its 5G rollout in regional areas, using TPG’s spectrum for greater reach and efficiency.
Furthermore, the ACCC found that the agreements are unlikely to weaken infrastructure competition. Given TPG’s limited infrastructure in regional areas, the improvements in its service through the arrangement will be more substantial than what TPG could have accomplished solo. Optus and TPG will continue operating their separate networks in metropolitan areas, where most of the population resides, maintaining competition in major urban markets.
Although market participants led by Telstra have suggested several measures like open wholesale access, divestment of certain spectrum and regional investment obligations, the ACCC determined that these concerns are better addressed through other regulatory processes. The commission will continue monitoring the agreements to ensure they do not result in any unintended negative impacts on competition.
Baburajan Kizhakedath
