Australia’s competition regulator has confirmed it will not oppose a mobile network and spectrum sharing deal covering regional areas.
Under the deal, Optus will use TPG’s spectrum to supply mobile services; in turn, Optus will provide network services to TPG. The deal is unlikely to bother anybody living in the regions where phone reception is a long-time have or have-not.
The regulator ultimately decided that any sharing of this nature was unlikely to lessen competition in regional areas or otherwise.
In fact – the regulator sees a net win for Australians actually living in those outback areas.
“The ACCC carefully considered the arrangement proposed by Optus and TPG, as it represents a structural change to the mobile services landscape,” ACCC Commissioner Dr Philip Williams said.
“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.”
That can’t really be understated.
This financial journalist was in WA’s southwest only the weekend just past and was bemused to find that his Vodafone coverage appeared to be affected by heavy cloud.
Complaints about Telstra – extremely common, anecdotally – vary from town to town. Williams also added the deal is likely to assist Optus expand its regional 5G network rollout.
“The competition impacts of the agreements are likely to be limited to geographic areas where TPG is not currently a significant competitor and is unlikely to become one in the future,” the ACCC wrote on Thursday.
“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,” Williams further noted.
The ACCC added it will continue to monitor this structural change in the mobile services landscape.
