Telstra and TPG Telecom announced a ten-year regional network sharing agreement covering Telstra’s Radio Access Network in defined territory.
The deal provides TPG Telecom with access to around 3,700 of Telstra’s mobile network assets, increasing TPG Telecom’s current 4G coverage from around 96 per cent to 98.8 per cent of the population.
Both carriers will continue to operate their own core network. Telstra will also obtain access to and deploy infrastructure on up to 169 TPG Telecom existing mobile sites, improving coverage for TPG and Telstra customers in the zone. TPG Telecom will decommission the 725 mobile sites it currently operates within the agreed area, reducing environmental impact, energy consumption, operating costs and future capex. The non-exclusive agreement includes the option for TPG Telecom to request two contract extensions of five years each.
TPG Telecom CEO Iñaki Berroeta said the landmark network sharing agreement would significantly expand TPG Telecom’s mobile network footprint in regional Australia and enable growth of its customer base in regional and metropolitan areas.
“It represents a material uplift in the capability of our network and will provide significant value for TPG Telecom shareholders over the medium and long term.
“We will be open for business in regional and rural Australia like never before, offering a 4G network that provides 98.8% population coverage and rapidly growing 5G coverage across the nation.”
TPG Telecom notes that it will continue to operate its own 3G, 4G and 5G networks in metropolitan areas reaching around 80 per cent of the population, which includes its network infrastructure sharing arrangement with Optus in those areas.
