ACCC seeks ‘further views’ over Telstra (ASX:TLS), TPG (ASX:TPG) deal

October 03, 2022 12:00 PM AEDT | By Sonal Goyal

Image source: © Sedovukr | Megapixl.com

What is Telstra and TPG mobile network deal?

As per the media release by ACCC,

Back in February 2022, TPG and Telstra had an inked network-sharing agreement for ten years. According to ASX announcement dated 21 February 2022, the commercial agreement would offer substantial value to the wholesale mobile revenue of Telstra. On the other hand, TPG group’s subscribers would get 4G and 5G services within elucidated coverage zones across urban fringe and regional areas.

TPG Telcom shared that as a part of the deal, it would gain access to circa 3,700 Telstra’s mobile network assets. With this, TPG Telecom’s 4G coverage increases from 96% to 98.8% of the population.

Telstra would get access to TPG’s spectrum across 5G and 4G, which would assist it in growing its network, enhancing capacity and continuing to be the largest and fastest network in the country.

ACCC highlighted that Telstra is the largest mobile network operator in Australia, and TPG is the 3rd largest wireless carrier in the country after Optus.

What issues are raised by ACCC?

ACCC said the competition amongst the mobile companies depends on the spectrum and infrastructure they own as it impacts the speed and coverage, which are important for the customers.

Now, the competition regulator is assessing the impact of the proposed spectrum and infrastructure arrangements between TPG and Telstra on the ability of the telecom companies (Telstra, TPG, Optus and other participants) to invest in infrastructure and to compete in the market.

Liza Carver, ACCC commissioner, said,

By early December 2022, ACCC's decision regarding the authorisation to TPG and Telstra can be expected, informed ACCC.

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