- Telstra (TLS) and Vodafone and iiNet owner, TPG Telecom, signs a ten-year regional commercial agreement
- Under the multi-operator core network agreement, TPG will have access to around 3700 Telstra mobile network assets and in return, Telstra is expected to receive up to $1.8 billion in revenue
- However, for the deal to be completed, it will need approval by the Australian Competition and Consumer Commission
- If approved, the access will be available to TPG customers by the end of the year
- On the market, Telstra is up 1.15 per cent and trading at $3.96 per share while TPG is up 1.47 per cent to $5.88
Telstra (TLS) and Vodafone and iiNet owner, TPG Telecom (TPG), has signed a ten-year regional commercial agreement.
The deal will not only improve TPG Telecom’s 4G and 5G coverage in regional Australia but also Telstra’s wholesale mobile revenue.
Under the multi-operator core network agreement, TPG will have access to around 3700 Telstra mobile network assets. In return, Telstra could receive up to $1.8 billion in revenue.
With access to Telstra’s mobile sites, TPG’s current 4G coverage will increase from 96 per cent to 98.8 per cent of the population.
Telstra will also have access to TPG Telcom’s spectrum across 4G and 5G, which will allow it to grow its network, increasing capacity.
However, for the deal to be completed, it will need approval by the Australian Competition and Consumer Commission and if successful will be available to TPG customers by the end of the year.
Telstra CEO Andrew Penn said the deal provided significant value to shareholders and
customers.
“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,” he said.
“In particular, the spectrum agreement will ensure that regional and rural customers will now experience faster speeds in more locations on their mobiles.”
TPG Telecom CEO Iñaki Berroeta said the deal represents a “material uplift” in the capability of the company’s network.
“The agreement demonstrates best-practice asset utilisation and a commitment to
rationalising our operations to deliver a better customer experience, while increasing capital efficiency,” he said.
On the market, Telstra was up 1.15 per cent and trading at $3.96 per share while TPG was up 1.47 per cent to $5.88 at 1:23 pm AEDT