After the departure of former Optus boss Kelly Bayer Rosmarin, the rival telco groups decided to let “bygones be bygones”.
Less than two years ago, TPG Telecom was firing off letters insisting it didn’t need to share regional phone networks with rival Optus as it tried to cement a $1.8 billion deal with Telstra.
“We’re definitely seeing some green shoots emerging in terms of customer wins and things like that. So I’m much more positive now than what I was, say, 12 months ago on where that business is headed,” Venter says.“It’s not out of the woods yet. It’s got a long road ahead, but we’re clear on what our strategy is.”
The deal is non-exclusive, which means Optus can add other operators to the new network and TPG can leave it.“There are smaller operators, especially in parts of regional Australia, which may be interested,” says Venter.While Telstra will continue to have the most comprehensive network in Australia, the TPG-Optus deal will allow TPG to market its services to more people. Optus currently controls some 29 per cent of the mobile phone market, while TPG has 17 per cent.
TPG, which sells cheaper phone plans than Telstra or Optus and has been gaining mobile customers, will reduce the cash burn by shutting down up to 755 of its own mobile towers.The company has been struggling with higher leasing costs for towers and is carrying more than $6 billion in net debt.
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