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The two companies have entered into three agreements concerning mobile services in specific regional areas. Under these agreements, Optus will use certain TPG spectrum to provide services, while TPG will receive network services from Optus.
TPG will also decommission most of its sites in these regions, with some being transferred to Optus.
TPG and Optus will continue to operate their own mobile networks in metropolitan areas where 81.6 per cent of Australia’s population live.
The ACCC considered the effects of the agreements on competition for retail and wholesale mobile services in Australia. The ACCC found that the agreements are unlikely to substantially lessen competition.
“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.”
“The agreements are also likely to support Optus’ regional 5G rollout, particularly through access to TPG’s spectrum,” Dr Williams added.
The ACCC found that the proposed agreements are unlikely to substantially reduce infrastructure competition from TPG. 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.
“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,” Dr Williams said.
During the review, market participants proposed a range of measures for improving mobile services in regional areas. Market participants proposed that Optus and TPG should provide open wholesale access to their networks, divest certain spectrum, and make obligations to undertake certain regional investments.
“Policies and regulations which promote competition for mobile services in regional areas can help deliver higher quality mobile services and lower prices for consumers.”
“However, in the absence of particular competition concerns about the proposed arrangement, these proposals are better considered through other policy and regulatory processes.”
While the ACCC has found that the proposed arrangement is unlikely to substantially lessen competition, it does represent a significant change in the structure of the mobiles market, and we will continue to monitor this as part of our telecommunications functions.
Read also: Election commitments to boost mobile coverage enter stage 2
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