Australia’s competition watchdog, the Australian Competition and Consumer Commission (ACCC), has initiated an informal review of the $791.39 million network sharing agreement between TPG Telecom and Optus, a subsidiary of Singapore Telecommunications.
The agreement, signed in April, would see TPG expanding its coverage to 2,444 mobile network sites in regional Australia, up from the current 755. Additionally, TPG would gain access to Optus’ regional 5G network as it continues to be rolled out, Reuters news report said.
The ACCC is soliciting opinions on how the deal might impact both the pricing and non-pricing aspects of mobile service infrastructure across the country. The agreement is also expected to help TPG reduce operating and capital expenditures related to the maintenance and expansion of its regional mobile network. TPG will pay Optus A$1.17 billion (approximately $791.39 million) over the 11-year duration of the agreement.
In 2023, a similar network sharing deal between TPG and its larger competitor Telstra was blocked by the ACCC and the Australian Competition Tribunal due to competition concerns and potential negative impacts on Optus.
A TPG spokesperson stated in an emailed response, “In this arrangement, we have taken account of learnings during a similar process in 2023 and will work collaboratively with the ACCC throughout this approval process.”
An Optus spokesperson also acknowledged the review process and affirmed the company’s willingness to provide any necessary information during the review.
The deadline for submitting views on the deal to the regulator is July 26, and the ACCC plans to announce its findings on September 13.
