Vodafone and Optus network sharing agreement expands coverage for regional Australia. Great news for Cmobile C Red plan customers, expanding the coverage from 96% of the Australian population to 98.4%.
It also more than doubles the geographical size of the mobile network from approximately 400,000 square kilometres to around one million square kilometres. The network will extend to regional and rural Australia, including popular holiday destinations that were previously without Vodafone network coverage.
The deal was finally approved by the Australian Competition and Consumer Commission (ACCC) in September, allowing the mobile carriers to complete the network build which is expected to be completed by early 2025.
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Under the terms of the multi-year deal, TPG Telecom (which operates brands such as Vodafone and iiNet) and Optus will share network infrastructure, including mobile towers and related equipment. This approach will enable both companies to broaden their reach without the substantial costs associated with deploying individual towers and facilities, particularly in sparsely populated regions where network expansion has been financially challenging.
Expanding Reach to Rural and Regional Australia
The move will bring more reliable connectivity to parts of rural and regional Australia, where mobile blackspots and inconsistent network performance have long been a concern for residents, businesses, and emergency services. Through the agreement, TPG Telecom and Optus will leverage existing assets and new investments to strengthen coverage, with an initial focus on locations that currently suffer from limited access.
Iñaki Berroeta, CEO of TPG Telecom, expressed optimism about the benefits the partnership will deliver to customers. “This agreement marks a major milestone for TPG Telecom as we work to provide more people across Australia with reliable and affordable mobile service options,” he said. “Network sharing allows us to meet the increasing demand for connectivity in regional areas, without duplicating infrastructure.”
Enhancing Resilience and Sustainability
In addition to improving service reach, the companies noted that shared infrastructure could enhance network resilience by providing additional redundancies, potentially reducing the impact of service interruptions caused by natural disasters and other unforeseen events. By reducing the number of standalone towers, the companies also aim to cut carbon emissions associated with tower construction and maintenance, in line with sustainability commitments held by both Optus and TPG Telecom.
However, the agreement does not signify a merger or the complete integration of each company’s network. Instead, the arrangement will involve a collaborative framework that allows each provider to retain control over its core operations, while allowing shared use of infrastructure to provide service to customers of both networks.
Industry and Consumer Implications
The network-sharing deal follows a trend observed in telecom industries globally, where infrastructure sharing is becoming more common as companies seek to manage rising operational costs and respond to growing demand for high-speed mobile data. Network sharing has been lauded by industry experts as a cost-effective solution that can reduce redundancies, lower costs, and bring rapid improvements to connectivity.
For consumers, the agreement could result in better pricing and improved access to high-speed data, particularly for those in rural and regional areas. The collaboration also holds potential to accelerate the rollout of 5G in these areas, potentially bringing next-generation connectivity to communities that previously had limited access to advanced mobile technologies.
Looking Ahead
As TPG Telecom and Optus embark on this network-sharing initiative, industry stakeholders and consumers alike will watch closely to see how the agreement unfolds and its impact on Australia’s telecommunications landscape.
For now, residents and businesses in regional Australia can look forward to a future where improved mobile coverage and connectivity are on the horizon.