Telstra and TPG Telecom have announced a landmark network sharing agreement which will offer improved 4G and 5G coverage across Australian regional and outer urban areas.
The 10-year multi operator core network commercial agreement will boost Telstra’s wholesale mobile bottom line and give TPG telecom access to more than 3700 of Telstra’s mobile network assets.
As a result, TPG Telecom, the company behind Vodafone, TPG and iiNet, will improve its current 4G coverage from 96 per cent to 98.9 per cent of the population.
In exchange Telstra will also have access to TPG Telecom spectrum on 4G and 5G which will also allow the network to grow its footprint and increase its capacity as the country’s largest and fastest network.
The partnership will see Telstra share its radio access network (RAN) for 4G and soon to be 5G services in the defined coverage zones with both carriers still operating their own core network where the key differences lie.
Telstra will have access to 169 TPG Telecom existing mobile sites which will see an improvement in coverage for both TPG and Telstra customers in those areas.
“This additional spectrum will mean that all Telstra customers will continue to experience Australia’s best and fastest network across the country, in combined 4G and 5G speeds,” said Telstra CEO Andy Penn.
“The spectrum agreement will ensure that regional and rural customers will now experience faster speeds in more locations on their mobiles.”
TPG Telecom CEO Iñaki Berroeta says the deal will significantly expand TPG Telecom’s mobile network footprint in regional Australia and enable growth in other areas of Australia.
“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,” Berroeta says.
“We will be open for business in regional and rural Australia like never before, offering a 4G network that provides 98.8 per cent population coverage and rapidly growing 5G coverage across the nation.
“The agreement demonstrates best-practice asset utilisation and a commitment to rationalising our operations to deliver a better customer experience, while increasing capital efficiency.”
Mr Penn says with more people moving to regional areas because of COVID, congestion in some areas has increased.
“This additional spectrum will ensure that Telstra customers will experience significantly reduced congestion at busy times,” he said.
“Telstra’s network has always been and will continue to be the best network – the structure of the deal ensures that we will continue to differentiate in network leadership for our customers in coverage and services.
“We can do that because we will maintain our one million square km competitive advantage in mobile coverage where no other operators have invested.
“Mobile coverage is often talked about as population coverage, however we all know that it’s the square kilometres of coverage when you travel between towns and cities that also matters. It is the fabric of our mobile network.
“This is critical for customers living and working in those areas. It provides security and safety when travelling long distances on major roads and is only available for our customers travelling through or working or living in those areas.”
Mr Berroeta said the agreement was a win for TPG customers who will now have access to a a larger part of the best regional network in Australia.
“The deal will give TPG Telecom’s consumer, enterprise and wholesale customers seamless access to a national network,” he said.
“This will enable TPG Telecom’s Vodafone, TPG, iiNet, Lebara and felix brands to improve their services for regional Australians.”
