The Australian competition regulator has initiated an informal review of the network sharing agreement between TPG Telecom and Optus, which is owned by Singapore Telecommunications. The agreement, signed in April, will see TPG expanding its coverage to 2,444 mobile network sites in regional Australia, up from 755, and gaining access to Optus’ regional 5G network as it is rolled out. The Australian Competition and Consumer Commission (ACCC) is seeking opinions on the potential impact of the deal on both the pricing and non-pricing aspects of the country’s mobile service infrastructure. Upon completion, the agreement will also enable TPG to avoid the operating and capital expenses associated with maintaining and expanding its regional mobile network. TPG will pay Optus A$1.17 billion ($791.39 million) over the course of the 11-year agreement.
In 2023, the ACCC and the Australian Competition Tribunal halted a comparable asset exchange agreement between TPG and its larger competitor, Telstra, due to concerns about competition and the potential impact on Optus.
“We have taken into consideration the lessons learned from a similar process in 2023 and will collaborate with the ACCC throughout the approval process,” stated a TPG spokesperson in an email response.
An Optus representative also acknowledged the review process and stated that the company would provide any necessary information as part of the review.
The deadline for submitting opinions on the deal to the regulator is July 26, with the ACCC expected to announce its findings on September 13.
(Note: The conversion rate is $1 = 1.4784 Australian dollars)