A new network sharing agreement between Optus and Vodafone will result in vastly improved mobile coverage for the two carriers. While Telstra boasts coverage to 99.7% of the Australian population, the new agreement gives Vodafone access to 98.4% of the population.
With Australia’s 3G network winding down, expanded coverage of 4G and 5G is becoming increasingly important. The new deal, which is valued at about $100M per year for the next 11 years, enables both carriers to expand their 5G footprints many years ahead of previous schedules. The arrangement will not be opposed by the ACCC.
The new arrangement is already active and includes Mobile Virtual Network Operators (MVNOs). These are companies that on-sell access to the main carriers’ wholesale networks.
The outback regions of Queensland, South Australia and the Northern Territory are set to reap the biggest benefits. But other regional towns, including Coffs Harbour (NSW), Gladstone (QLD), the Grampians (VIC) and the Eyre Peninsula (SA) will all see massive improvements.
This isn’t the first time network sharing arrangements have been tried in Australia but the ACCC previously knocked back a proposed arrangement between Vodafone and Telstra on the grounds that it would not boost competition because of Telstra’s already dominant position. This new arrangement seems to have placated the regulators concerns.
Anthony is the founder of Australian Apple News. He is a long-time Apple user and former editor of Australian Macworld. He has contributed to many technology magazines and newspapers as well as appearing regularly on radio and occasionally on TV.