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Telstra And TPG Sign Decade-Long Tower, Spectrum Share Deal

Telstra and TPG have entered into a decade-long network sharing agreement, which Andy Penn says will mean less congestion for all.

The deal means that Telstra will gain access to TPG’s 4G and 5G spectrum, and 169 mobile sites. TPG will, in turn, access 3,700 Telstra cellular towers, bumping its 4G coverage to 98.8 per cent of Australians.

TPG will decommission 725 mobile sites, allowing for better access for customers of both telcos.

“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,” explains Telstra CEO Andy Penn.

“In particular, the spectrum agreement will ensure that regional and rural customers will now. experience faster speeds in more locations on their mobiles.

“The deal provides TPG Telecom with the opportunity to access some of our network assets within the defined zone. The access is similar to the way Telstra currently provides wholesale services to its MVNOs and Belong in this zone,” he said.

“Similar to monetising our passive infrastructure, it allows Telstra to have an innovative way of monetising some of our active mobile infrastructure, in areas where the population coverage is much smaller and more challenging in terms of returns and further investment and where there are already a number of competitors.

“Additional scale from this agreement therefore supports return on invested capital in these areas and makes ongoing investment in the network and innovation more sustainable.”

TPG Telecom CEO Iñaki Berroeta added: “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 deal is still subject to watchdog approval, and is expected to be in play by the end of 2022.



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