Optus and TPG Telecom Forge Network-Sharing Deal

Optus, a subsidiary of Singtel, has entered a network-sharing agreement with TPG Telecom. Under the agreement, the two companies will establish a regional multi-operator core network (MOCN), sharing spectrum in regional Australia.

Optus anticipates receiving A$1.6 billion in total service fees over the 11-year initial term, with approximately A$900 million in incremental cash flows. The non-exclusive agreement allows for a potential five-year extension.

TPG will gain access to Optus's regional radio access network, expanding its 4G coverage from 400,000 square kilometers to 1,000,000 square kilometers, covering 98.4% of the population.

Retail and wholesale customers, including Vodafone, iiNet, Lebara, and felix, will benefit from Optus's 4G and 5G regional network on par with Optus customers.

Additionally, Optus will utilize some of TPG's spectrum in the MOCN, enhancing its capacity, speed, and service quality in regional Australia.

The collaboration aims to reduce 5G network rollout costs, enabling infrastructure deployment two years earlier than planned.

Both companies will maintain independent control of security and resiliency by operating their core networks. They will continue to operate separate 4G and 5G radio access networks in metropolitan areas.

The agreement expands on their existing passive equipment-sharing joint venture, covering 3,500 sites in metropolitan regions.

Pending regulatory approvals, the network is expected to be operational for customers in early 2025.