Abstract: The Australian Competition and Consumer Commission (ACCC) has approved the regional mobile network and spectrum sharing agreement between Optus and TPG. The approval strengthens retail competition in regional Australia and supports infrastructure-based competition. The ACCC’s decision aligns with its stance against combinations that could reduce infrastructure-based competition, particularly involving Telstra.
The agreement will also improve the return on invested capital (ROIC) for both companies. This addresses a critical issue in the telco industry. But long-term pricing adjustments remain necessary in order to sustain digital infrastructure investment.