A statement from the two companies said Optus would provide TPG Telecom with access to its regional radio access network and the two firms would share spectrum in regional Australia under the regional Multi-Operator Core Network deal.
In turn, Optus will licence some of TPG’s spectrum for use in the MOCN, to provide better capacity, speed and service quality to customers of both telcos in regional Australia.
The statement said customers and communities would also benefit from Optus’ commitment to speed up its 5G rollout in the regions, increasing 5G sites in the regional MOCN to 1500 by 2028 and 2444 by the end of 2030.
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Both telcos would operate their own core networks allowing them to maintain network control, enable differentiation of service and independent control of security and resiliency.
Both Optus and TPG Telecom will also continue to run their own 4G and 5G radio access networks in metropolitan areas.
Optus interim chief executive Michael Venter termed the agreement a significant win for regional Australia.
“For over 30 years Optus has brought choice and competition to Australia through investment in network services and infrastructure. This is a win for all Australians, especially our regional communities, businesses, and visitors,” he said.
“Optus and TPG Telecom will be positioned to provide consumers with more choice and better services as we accelerate our investment in the regions.
“The agreement will reduce combined 5G network rollout costs in regional Australia, which will enable the rollout of 5G infrastructure to be completed two years earlier than previously planned."
TPG Telecom chief executive Iñaki Berroeta said the agreement would significantly extend its mobile network reach and enable growth of its customer base in regional and metropolitan areas.
“This network sharing arrangement will reset the competitive landscape for mobile services in regional areas and provide Australians with more choice than ever before,” he said.
By sharing regional network assets, TPG and Optus could bring coverage benefits to customers at a significantly lower cost than duplicating infrastructure, Berroeta said.
“This will allow us to reduce rollout and operating costs, make better use of network assets and deliver huge customer benefits,” he added.
“In a country as large as Australia, this is the sustainable approach we need to maximise established infrastructure, and expand the reach of telecommunications services, competition and choice for consumers.”
The arrangement will bring together two largely duplicated regional networks to deliver a total bigger network with more capacity for customers of both companies.
It builds upon the existing passive equipment sharing joint venture, which includes about 3500 sites in metropolitan areas, and paves the way for potential expansion of sharing arrangements.
The non-exclusive deal will initially run for 11 years and TPG Telecom can extend it for a further five years.
Subject to relevant regulatory approvals, the agreement is expected to be in place by early next year.
