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Optus boss Kelly Bayer Rosmarin has fired up her attack on a network sharing deal between telco rivals Telstra and TPG Telecom, claiming the partnership will curtail infrastructure investment in regional Australia and damage the economy.
The deal would destroy competition between mobile networks because the cost of TPG’s access to the network would be “dictated by Telstra”, Rosmarin said in comments to this masthead. She said TPG customers would pay more and the deal would restrict “vital” alternative network options during emergencies in rural areas.
Optus CEO Kelly Bayer Rosmarin says the proposed deal will give Telstra “unprecedented control” over national spectrum assets.Credit:Dominic Lorrimer
“This arrangement is not a sharing arrangement,” Rosmarin said. “It is an arrangement where TPG withdraws from rural Australia and gets access to a network owned and operated by Telstra, paying Telstra for every customer it onboards to Telstra’s network.”
Under the deal between the rival telcos, Telstra would give TPG (which operates brands such as Vodafone and iiNet) access to 3700 mobile towers in regional areas, while TPG would shut down 725 of its mobile sites and give Telstra access to another 169 sites.
Rosmarin said the deal would increase Telstra’s “dominant competitive advantage” and force out rivals from rural Australia. “If Optus can’t rationally justify future investment, without any competitor to keep Telstra in check, regional consumers and businesses will inevitably experience less investment in regional Australia, higher prices and less resilient communities.
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“Our economy and digital future rely on communications infrastructure so if this merger is allowed to proceed, Australia can expect overall lower levels of economic activity and job impacts arising from the less competitive sector this merger will create.”
James Rickards, TPG Telecom general manager of external affairs, said Optus was “distorting facts” to further its commercial agenda. “Under the network sharing deal, we will go from having 5500 sites with only a small number in regional areas to around 8500 mobile sites across metro and regional Australia connected into our core network where service quality, pricing and product differentiation are all controlled by us,” Rickards said.
“TPG’s entire reason for this deal is to increase the size of its network so it can win customers from both Telstra and Optus, meaning all mobile consumers will benefit from greater choice and competition.”