Telstra and TPG Telecom have teamed up to share their spectrum and mobile networks over the next 10 years in a landmark agreement.
Under its Multi-Carrier Core Network (MOCN) agreement, TPG Telecom will be able to access approximately 3,700 Telstra mobile network assets, increasing its current 4G footprint from approximately 96% to 98.8% of the population. .
Telstra will have access to TPG Telecom’s 4G and 5G spectrum, allowing it to expand its network and increase its capacity. It will also gain access to and deploy infrastructure at up to 169 existing TPG Telecom mobile sites, improving coverage for TPG and Telstra customers.
Andrew Penn, CEO of Telstra, said that with more people moving to regional areas as a result of the pandemic, congestion in some areas has increased, adding that the additional spectrum will ensure Telstra customers have reduced rush hour congestion.
“Telstra’s network has always been and will continue to be the best network – the structure of the agreement ensures that we will continue to differentiate ourselves in network leadership for our customers in terms of coverage and services,” he said. -he declares.
Penn added that the deal will allow Telstra to monetize some of its active mobile infrastructure in areas where population coverage is smaller and more difficult in terms of returns and incremental investment, and where there is already a a number of competitors.
TPG Telecom CEO Iñaki Berroeta said the network-sharing deal would “significantly expand” the telecom operator’s footprint in the Australian region and strengthen its customer base in regional and metropolitan areas.
“This represents a significant improvement in the capacity of our network and will deliver significant value to TPG Telecom shareholders over the medium to long term,” Berroeta said.
Access to the additional coverage will be automatic for all TPG Telecom customers and will appear to them as being provided by their current provider within the TPG Telecom group.
Meanwhile, TPG Telecom will continue to operate its own 3G, 4G and 5G networks in metropolitan areas reaching around 80% of the population, which includes its infrastructure sharing agreement with Optus in these areas.
It will also decommission the 725 mobile sites it currently operates in MOCN’s coverage area, reducing environmental impact, energy consumption, operating costs and future capital expenditures.
If the deal is approved by the Australian Competition and Consumer Commission, MOCN should be available to TPG customers by the end of this year.