A report commissioned by Optus claims that Telstra doesn’t need TPG’s regional spectrum holdings, it just needs to stop under-utilising its existing spectrum.

That report by UK economist firm CEPA was submitted to the Australian Competition and Consumer Commission’s inquiry into the proposed network sharing deal between Telstra and TPG.

The report disagrees with Telstra’s assessment that the deal with TPG is necessary due to the regional spectrum the latter holds.

CEPA found that Telstra could “address capacity problems by making greater use of its current spectrum assets.”

“Further, Telstra has scope to invest in newer spectrally efficient equipment on existing frequencies to improve capacity.”

CEPA suggested that a similar agreement between Optus and TPG would have been fairer for Australians, and  “result in a more symmetric spectrum allocation between Optus and Telstra” in the regional coverage zero.

“I believe, on the basis of economic evidence, this would lead to a better outcome,” CEPA’s Dr Chris Doyle said.

“In addition, the greater mid-band spectrum available to Optus would enable it to offer 5G FWA retail services and hence provided much-needed effective competition.”

A joint Telstra/TPG submission entered last year said “it is unlikely that TPG would be able to enter into an active network sharing arrangement with Optus for at least three to five years”.