TPG has admitted it needs the controversial $1.8 billion network sharing deal with Telstra in offer to be “commercially viable” against competitors.

In a heavily redacted statement to the ACCC, TPG CEO Inaki Berroeta said the increase in regional coverage is vital to the country’s third-biggest telco, who will become the second-biggest upon completion of the deal.

“The proposed transaction aligns with TPG’s ambitions for regional Australia and will enable TPG to deliver regional coverage that rivals its competitors within a time frame and in a manner not otherwise commercially viable for or available to TPG,” he said.

“TPG will be better able to compete for new customers who reside in metropolitan, peri-urban and regional areas by providing a competitively priced mobile service with coverage more comparable to that of Telstra.

“The proposed transaction provides TPG with access to 5G in the 17 per cent regional coverage zone a number of years earlier than it would otherwise be able to deploy such technology itself.”

Berroeta said a similar deal with Optus and TPG wouldn’t have been viable either.

“I am of the view that TPG has no financial case to sustain a full build in regional and rural areas,” Berroeta said.

“The proposed transaction will provide TPG with regional 5G coverage in a much shorter period of time than under any alternative agreement with Optus due to Optus’ need to upgrade its sites to 5G.

“TPG will be better placed to win market share from both Telstra and Optus under the proposed transaction that in any potential counterfactual, whether that is a roaming agreement with Optus or a targeted build.”

The ACCC has until December 2 to make its decision regarding the proposed merger.