TPG Telecom and Optus have announced that they have signed network sharing agreements to create a regional Multi-Operator Core Network (MOCN) to extend TPG Telecom’s 4G and 5G mobile network to reach 98.4 percent of the Australian population. The deal enables sharing regional network assets which can bring coverage benefits to customers at a significantly lower cost than duplicating infrastructure.
The non-exclusive MOCN agreement has an initial term of 11 years and includes an option for TPG Telecom to extend the agreement for a further five years. Both carriers will continue to operate their own core networks, enabling differentiation of service for customers, and independent control of security and resiliency. Subject to relevant regulatory approvals, the MOCN is expected to be available to TPG and Optus customers in early 2025.
Under the MOCN agreement, Optus will provide TPG Telecom with access to its regional radio access network and will share spectrum in regional Australia. TPG Telecom will gain access to 2,444 Optus mobile network sites in regional Australia, increasing its current national 4G coverage from around 400,000 square kilometres to around 1,000,000 square kilometres and 98.4 percent of the population.
Additionally, Optus will licence some of TPG’s spectrum for use in the MOCN, delivering enhanced capacity, speed, and service quality to TPG and Optus customers in regional Australia. Customers and communities will also benefit from Optus’ commitment to accelerate its 5G rollout in the regions, fast-tracking the number of 5G sites in the regional MOCN to 1500 by 2028 and 2,444 by the end of 2030.
Once implemented, TPG Telecom’s retail and wholesale customers including Vodafone, TPG, iiNet, Lebara, and felix customers will use Optus’ 4G and 5G regional network on an equivalent basis to Optus customers.
Optus and TPG will operate their own core networks which will allow them to each maintain network control, enabling differentiation of service for customers, and independent control of security and resiliency. They will also continue to operate their own 4G and 5G radio access networks in metropolitan areas.
Optus Interim CEO Michael Venter identified that the agreement was a significant win for regional Australia. He also noted that 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.
“This deal represents a major breakthrough in TPG’s ambitions to deliver greater choice and value to more Australians and grow the scale of our business in the most efficient way possible,” Iñaki Berroeta, TPG Telecom CEO, says in a media statement. “Network infrastructure sharing of this kind avoids unnecessary capital investment and high operating costs, meaning there is more value for shareholders and less cost to pass on to customers. The transaction will also allow TPG to monetise its spectrum holdings in regional Australia in ways that were not otherwise possible.”
“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,” according to Venter. “Optus and TPG Telecom will be positioned to provide consumers with more choice and better services as we accelerate our investment in the regions.”