By co-investing and sharing network infrastructure where it makes sense, mobile carriers can reduce roll-out and operating costs and make better use of expensive network assets while delivering huge public benefits. This allows more operators to provide services from the same towers resulting in greater competition and choice for customers.
Active network sharing has been implemented in many countries around the world, including New Zealand, Canada and numerous European countries.
In countries with low population density, network sharing has helped lower prices for services and improved network coverage and quality for millions of consumers.
Closer to home, network sharing is fast becoming the political solution of choice to the challenge of connecting Australia’s vast regions.
For example, the Victorian state government has committed $300 million as part of its Connecting Victoria program to fast-track greater mobile coverage in 54 locations across the state.
Under this program, governments and mobile operators are co-investing in under-served areas to build new, and upgrade existing, mobile networks to increase 4G mobile coverage and make more places 5G-ready.
The NSW state government is also looking at ways to improve mobile connectivity in the regions through its use of active network sharing on a trial basis.
In announcing a recent landmark trial for the state, Deputy Premier and Minister for Regional NSW Paul Toole said “network sharing just makes sense”.
“It reduces the need to build additional mobile towers across the landscape, reduces costs for telecommunications providers and ensures everyone can access their mobile phone no matter their provider,” he said.
Trent Czinner is group executive legal and external affairs and company secretary, TPG Telecom.
Being able to quickly bring the benefits of greater competition and choice to regional Australia is why TPG Telecom has entered into a network sharing agreement, which remains subject to ACCC approval.
This proposed 10-year regional network sharing arrangement will see TPG Telecom gain access to five times more mobile sites than it currently has in regional areas, more than doubling our geographic network coverage to 1.5 million square kilometers and extending our coverage to 98.8 percent of Australia’s population.
If approved, the arrangement will allow the more than five million mobile customers on Vodafone, TPG, iiNet, Lebara, Felix and TPG Telecom’s other mobile brands to gain coverage in regional areas not covered today by our mobile network. It also means they will gain access to regional 5G services much faster than would otherwise be achievable.
Way of the future
While the network sharing arrangement makes solid commercial sense for TPG Telecom, most importantly it makes sense for regional Australians, consumers and businesses. Mobile users in both the city and country who need reliable regional mobile coverage will have a greater choice of mobile provider.
Aside from the direct benefits this network sharing will bring to regional communities, it is also a great example of the future of mobile network infrastructure in Australia.
By sharing network infrastructure and pooling assets, telecommunications providers can reduce the intensive capital costs of building a network and reach more customers sooner. Efficient use of assets by avoiding unnecessary duplication is cost-effective and ultimately to the benefit of customers.
We own spectrum in regional Australia, but at present it’s either unused or greatly under-utilized because we don’t have the network reach to make the most of it.
Under the regional network sharing arrangement, operators will pool regional spectrum in the shared network. Finding a way to use this spectrum rather than it being left stranded or underused makes sense for TPG Telecom and for customers in regional areas who will benefit from the high-quality services that can be offered using this spectrum.
Pooling this spectrum will also reduce network congestion and help alleviate the slow data speeds often experienced in regional areas.
For too long, the thriving competitive market for mobile connectivity has been a given in the cities, but a luxury in the bush.
By sharing network infrastructure, we will be able to offer greater connectivity for regional Australia and increase the choice of mobile provider in many communities.
Choice, competition and greater connectivity should be available to all.
Trent Czinner is group executive legal and external affairs and company secretary, TPG Telecom.