ACCC Approves Historic Optus and TPG Merger: Boosting Rural Mobile Coverage and Connectivity

The Australian Competition and Consumer Commission (ACCC) has given the green light to three agreements between TPG and Optus, set to revolutionize mobile services in regional Australia. This deal, comprising three key components – MOCN (Multi-Operator Core Network), Service and Spectrum Authorisation – is a significant development, according to Optus.

For starters, the majority of TPG sites will be decommissioned, with remaining sites being integrated into the Optus network. This will allow Optus to fast-track its 5G rollout plans, with a target of 1,500 5G sites by 2028 and almost 2,444 by 2030. TPG, on the other hand, will increase its 4G coverage from 400,000 to 1,000,000 square kilometers, reaching 98.4% of the population. The licensing of TPG’s spectrum for use in the MOCN will also boost capacity, quality, and speed for both regional TPG and Optus customers.

Those living in metropolitan areas will remain unaffected, as both TPG and Optus will continue to operate separately. The ACCC, after careful consideration, deemed the agreement unlikely to “substantially” lessen competition, citing TPG’s previously limited footprint in regional Australia.

“This is a significant shift in the Australian mobile services landscape,” said ACCC Commissioner Dr Philip Williams. “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.”

So, what does this 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. However, unlike the Telstra-TPG deal that would have given customers fewer legitimate choices, these agreements offer a new era of choice and competition for customers across regional Australia.

“This deal 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. “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. Australians in metropolitan areas 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’s about to change.

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.