However, Mr Sheridan warned the proposed deal could create a regional 5G monopoly and hurt regional Australia.
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“An alternative network provider … means that our regional communities have back-up options if one provider’s network succumbs to extreme weather, disaster or power failure. Thankfully, today we have those back-up options. But all of this is being put at risk by the partnership proposed by Telstra and TPG.”
“The proposed partnership should be of major concern to government, our regulators, and regional communities. There is no other industry where a combination of the 1st and 3rd largest players would be considered,” he said.
The ACCC is assessing whether to oppose the deal. It has 90 days to make its decision. Before his departure, former ACCC boss Rod Sims raised concerns about the implication of the deal on prices.
James Rickards, general Manager external affairs at TPG Telecom, said Optus had misunderstood the agreement and its “pro-competitive benefits”. He said the agreement will help TPG increase its regional footprint five-fold.
Former ACCC Chair Rod Sims has raised concerns about the deal’s impact on prices.Credit:Alex Ellinghausen
“Optus is erroneously suggesting this will reduce competition in regional areas when in fact it will do the opposite and introduce more competition and greater choice,” Mr Rickards said.
“The MOCN (Multi-Operator Core Network) agreement will immediately make TPG the second provider to offer 5G in regional Australia. Optus’ suggestion of a regional monopoly infers it is giving up on regional Australia.”
”This is not a resale agreement or even a roaming agreement. This goes much further. It is an infrastructure-sharing arrangement, pooling sites and spectrum to deliver greater choice for regional customers.“
A Telstra spokesman declined to comment directly on claims that it had manipulated competition policy.
“The agreement with TPG will see regional Australia get more choice, more efficient use of spectrum, less congestion, higher speeds, and wider product options,” the spokesman said.
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