Optus Smashed By TPG Vodafone Deal
Earlier today Vodafone Hutchison Australia announced a $1 billion deal with TPG Telecom to use the latter’s networks for carrying its mobile data across the country for the next 15 years.
TPG in turn will resell Vodafone Australia’s mobile services, dropping Optus as its supplier in the process.
“Dark fibre is about preparing Vodafone for the future,” Vodafone Australia chief executive Inaki Berroeta said in a statement. “It is the next step in our network evolution and builds on our multi-billion-dollar network investment in recent years.”
Insiders claim that the deal could be the first step towards an eventual merger between Vodafone and TPG Telecom with TPG looking to buy the 50% currently owned by Hutchinson.
TPG boss David Teoh was in the UK last week trying to convince Vodafone UK to sell its 50 per cent stake in Vodafone Australia. A full takeover would likely cost around $4bn, but may struggle to clear the competition watchdog claim insiders.
The dark fibre that TPG will construct will provide greater bandwidth and faster data speeds.
“For customers, it will mean a higher-performing, 5G-ready network which will enable exciting future opportunities such as virtual and augmented reality applications,” Berroeta said.
“Network data traffic will continue to grow through customers’ appetite for mobile content and the emergence of technologies such as the Internet of Things, and a dark fibre network will allow us to cater for future growth.”