Australia's TPG Telecom and Singtel's Optus Mobile (Optus) have announced the signing of a network-sharing agreement to strengthen the regional mobile network and enhance coverage for customers across regional Australia. Under the regional Multi-Operator Core Network (MOCN) agreement, Optus will provide TPG Telecom with access to its regional radio access network, and they will share spectrum in regional Australia, Optus said on Monday.
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Benefits of the Network Sharing Agreement
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 per cent of the population.
For its part, Optus will license 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.
Accelerating 5G Rollout in Regional Areas
Optus said customers and communities will also benefit from its accelerated 5G rollout in the regions, fastening the deployment of 5G sites in the regional MOCN to 1,500 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.
Operational Independence and Enhanced Service
According to the official release, Optus and TPG will operate their own core networks, allowing them to maintain network control, enabling differentiation of service for customers, and independent control of security and resiliency. Both operators will also continue to operate their own 4G and 5G radio access networks in metropolitan areas.
“The agreement will reduce combined 5G network rollout costs in regional Australia, enabling the rollout of 5G infrastructure to be completed two years earlier than previously planned," Optus said.
TPG Telecom said the network-sharing agreement would significantly extend the telco’s mobile network reach across Australia and enable the growth of its customer base in regional and metropolitan areas.
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"By sharing regional network assets, TPG and Optus can bring coverage benefits to customers at a significantly lower cost than duplicating infrastructure," TPT Telecom said. "This will allow us to reduce rollout and operating costs, make better use of network assets, and deliver huge customer benefits."
Existing Infrastructure Sharing
This active network-sharing arrangement builds upon the existing passive equipment-sharing joint venture between TPG Telecom and Optus, which includes around 3,500 sites in metropolitan areas.
Reportedly, 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. The MOCN is expected to be available to TPG and Optus customers in early 2025 and is subject to relevant regulatory approvals.
