FILE PHOTO: View of an Optus shop in Sydney, Australia November 8, 2023. REUTERS/Kirsty Needham/File Photo
(Reuters) - Australia's competition watchdog has started an informal review of the network sharing deal between TPG Telecom and Optus, owned by Singapore Telecommunications, the regulator said on Friday.
Under the deal signed in April, TPG would expand coverage to 2,444 mobile network sites in regional Australia, up from 755, and would gain access to Optus' regional 5G network as it is rolled out.
The Australian Competition and Consumer Commission (ACCC) said that it is seeking views on the likely impact of the deal on the pricing as well as non-pricing aspects of the mobile service infrastructure in the country.
The deal, upon completion, will also help TPG avoid operating and capital expenditure for upkeep and expansion of its regional mobile network.
TPG will pay A$1.17 billion ($791.39 million) to Optus over the 11-year agreement term.
In 2023, the ACCC and the Australian Competition Tribunal had blocked a similar asset swap deal between TPG and larger rival Telstra, citing competition concerns and potential impact on Optus.
"In this arrangement we have taken account of learnings during a similar process in 2023 and will work collaboratively with the ACCC throughout this approval process," a TPG spokesperson said in an emailed response.
An Optus spokesperson also acknowledged the review process and said the company will provide any information that may be required as part of the review.
The deadline for submitting views on the deal to the regulator is July 26. The ACCC plans to announce its findings on Sept. 13.
($1 = 1.4784 Australian dollars)
(Reporting by Aaditya Govind Rao in Bengaluru; Additional reporting by John Biju; Editing by Sonia Cheema and Mrigank Dhaniwala)
