TPG-Optus Mobile Network Share Approved by Australian Regulator

By Stuart Condie

SYDNEY--TPG Telecom secured permission from Australia's competition watchdog to expand the reach of its mobile service by piggybacking on a rival's infrastructure, almost two years after a similar plan was refused.

The Australian Competition and Consumer Commission on Thursday said it would not oppose TPG's plan to use mobile infrastructure in regional and remote areas belonging to Singapore Telecommunications-owned Optus.

The regulator previously blocked TPG's plan to share regional mobile assets with Telstra, the country's largest communications provider. The ACCC said at the time that the proposal would have probably lessened competition and lowered service standards.

It had no such concerns about a tie-up between No. 2 player Optus and No. 3 TPG, saying it was unlikely to substantially lessen competition.

"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," ACCC Commissioner Philip Williams said.

In April, TPG, which operates under brands including Vodafone Australia, said it would pay Optus about 1.17 billion Australian dollars (US$787 million) to use infrastructure in regional Australia. It expects to pay service fees of about A$1.59 billion to access Optus sites over 11 years, recouping about A$420 million in mobile spectrum receipts.

The net outlay is about a third of the cost of building and maintaining its own regional network, TPG said at the time.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

September 04, 2024 19:52 ET (23:52 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.