Sydney, Australia-based mobile network operators TPG Telecom (ASX: TPG) and Singtel-owned Optus Mobile announced a new agreement that will strengthen the mobile network and deliver enhanced capacity, speed, and service quality to TPG and Optus customers in regional Australia.
Under the regional Multi-Operator Core Network (MOCN) agreement, TPG will gain access to Optus’ radio access network on 2,444 macrocell sites in rural Australia, up from TPG’s 755 sites today, and more than doubling its current national 4G footprint to around 386,000 square miles and 98.4 percent of the population. In turn, Optus will license some of TPG’s spectrum for use in the regional MOCN.
Optus has committed to accelerating its 5G rollout in the regions, fast-tracking the number of 5G sites in the regional MOCN to 1,500 by 2028 and reaching the full 2,444 sites by the end of 2030. Once implemented, TPG’s retail and wholesale customers (including Vodafone, TPG, iiNet, Lebara and felix) will use Optus’ 4G and 5G regional network on an equivalent basis as Optus customers.
Optus and TPG will operate and control their own core networks, enabling service differentiation for customers, and independent control of security and resiliency. Each MNO will continue to operate its own 4G and 5G RAN in metropolitan areas.
This active network sharing arrangement brings together two largely duplicated regional networks delivering in total a bigger network with more capacity for both TPG and Optus customers. This builds upon the existing passive equipment sharing joint venture between the two MNOs which includes around 3,500 sites in metropolitan areas.
Similar network sharing agreements are established in other global markets. In Canada, Bell Mobility and Telus share their RAN infrastructure with each other in their respective dominant markets, Inside Towers reported. By contrast, U.S. MNOs have not considered such network sharing agreements.
Optus Interim CEO Michael Venter highlighted the benefits of this network sharing deal. “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,” he said.
TPG Telecom CEO Iñaki Berroeta added that the network sharing agreement would significantly extend the telco’s mobile network reach across Australia and enable growth of its customer base in regional and metropolitan areas at a significantly lower cost than duplicating infrastructure. “This will allow us to reduce rollout and operating costs, make better use of network assets and deliver huge customer benefits,” Berroeta commented.
The non-exclusive MOCN agreement, valued at $1.04 billion according to telecoms.com, has an initial term of 11 years and includes an option for TPG Telecom to extend the agreement for a further five years. Subject to approval by the Australian Competition and Consumer Commission, the MOCN is expected to be available to TPG and Optus customers in early 2025.
By John Celentano, Inside Towers Business Editor
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