TPG Telecom explained

TPG Telecom Limited
Type:Public company
Foundation:2009
Location:North Sydney, New South Wales, Australia
Industry:Telecommunications
Products:Prepaid and postpaid mobile phones, fixed-line and wireless broadband
Num Employees:6,000 (2022)[1]

TPG Telecom Limited, formerly Vodafone Hutchison Australia and renamed following the merger with TPG, is an Australian telecommunications company. It is the second-largest telecommunications company listed on the Australian Securities Exchange. TPG Telecom is the third-largest wireless carrier in Australia, with 5.8 million subscribers as of 2020.[2]

TPG Telecom is the parent company of several Australian internet retail brands including Vodafone, TPG, iiNet, AAPT, Internode, Lebara and felix. TPG Telecom owns and operates nationwide fixed and mobile network infrastructure, including Australia's second-largest fixed voice and data network, with more than 27,000 kilometres of metropolitan and inter-capital fibre and a mobile network comprising more than 5,600 sites and covering over 23 million Australians.

History

TPG Telecom was previously known as Vodafone Hutchison Australia (VHA).[3] VHA was majority owned by Hutchison Telecommunications (Australia), a listed company of CK Hutchison Holdings group[4] and Vodafone. Vodafone Hutchison Australia was formed by a merger of Vodafone Australia and Hutchison Australia's 3 in 2009.[5] VHA started to phase out the 3 brand in 2011.[6]

On 30 June 2020, VHA received a listing on the Australian Securities Exchange. The newly listed company then merged with TPG Corporation, previously known as TPG Telecom on 13 July 2020.[7]

A merger of TPG and Vodafone Hutchison Australia was officially announced on 30 August 2018.[8] Initially rejected by the Australian Competition & Consumer Commission (ACCC), the plan was given permission to proceed via a February 2020 Federal Court of Australia ruling.[9] [10] [11] [12] [13]

TPG Telecom has 27,000+-kilometre inter-capital and metropolitan fibre network and is also the second-largest data and fixed-voice network in Australia.[14] It has an international system of connecting subsea cables to major hubs in Asia and North America from Australia.[15]

TPG has a 4G network covering more than 23 million customers in over 5,600 sites. A 5G network roll-out is currently underway.[16]

Network Sharing Proposal

On 21 February 2022, TPG Telecom announced a proposed network sharing (MOCN) deal with Telstra, which would see TPG gain access to approximately 3,700 Telstra mobile base stations in regional Australia, and Telstra being authorised to use TPG's mobile spectrum in these regional areas. Under the deal, 725 of TPG's mobile sites would be decommissioned, and another 169 of their sites would be used to deploy Telstra infrastructure.[17] The deal was described as being mutually beneficial for both TPG, who would see an increase in mobile coverage area, and Telstra, who would gain access to more spectrum to relieve congestion on their network. The deal was strongly opposed by their market competitor Optus, who argued that the approval of the deal would cement Telstra's position as the monopoly mobile operator in regional areas, stifle competition, and increase prices.[18]

In December 2022, the ACCC denied the network sharing proposal, based on its impact on market competition.[19] The decision was appealed by Telstra and TPG, but the ACCC's decision was reaffirmed in mid-2023. The two parties stated they would consider their options including further appeals.[20]

Some public commentary suggested it would be unprofitable for Optus to invest in regional internet infrastructure even without Telstra and TPG utilising market power.[21]

Brands

Several internet and mobile brands are operated by TPG Telecom including TPG, Vodafone, iiNet, Internode, AAPT, Lebara and felix.

Notes and References

  1. Web site: TPG Telecom Limited Results for Year Ended 31 December 2020 – Appendix 4E.
  2. Web site: Duckett. Chris. Vodafone Australia and TPG merger: Everything you need to know. 2020-09-25. ZDNet. en.
  3. Web site: Duckett . Chris . 2020-06-24 . Vodafone Hutchison Australia to become TPG Telecom on Monday . 2022-03-24 . ZDNet . en.
  4. Web site: Hutchison Telecoms.
  5. News: Vodafone, Hutchinson[sic] complete merger]. 16 August 2009. 17 February 2021. news.com.au.
  6. News: Vodafone moves on 3's demise. 31 August 2011. 17 February 2021. itnews.com.au.
  7. Web site: TPG Share Price & Information. ASX. 2020-08-10.
  8. Web site: PROPOSED MERGER OF EQUALS BETWEEN TPG TELECOM LIMITED AND VODAFONE HUTCHISON AUSTRALIA TO CREATE AUSTRALIA'S LEADING CHALLENGER TELECOMMUNICATIONS OPERATOR .
  9. Web site: Duke. Jennifer. 29 August 2018. Vodafone, TPG to become $15b telco giant to disrupt Optus and Telstra. 30 August 2018. Sydney Morning Herald. Fairfax Media.
  10. News: Reichert. Corinne. TPG and Vodafone Australia to merge into AU$15b telco named TPG. ZDNet. 2018-09-02.
  11. Web site: Concerns about proposed merger between TPG and Vodafone. 13 December 2018. Australian Competition & Consumer Commission.
  12. Web site: Letts. Stephen. 2019-05-08. TPG share price crashes as ACCC blocks Vodafone merger. 2019-05-19. ABC News.
  13. Web site: Danckert. Sarah. 2020-02-12. Court clears way for $15b Vodafone-TPG merger. 2020-02-13. The Sydney Morning Herald.
  14. Web site: Pash. Chris. 2018-08-30. Here's how the TPG-Vodafone merger stacks up against Telstra. https://web.archive.org/web/20180830035532/https://www.businessinsider.com.au/tpg-vodafone-merger-compete-telstra-optus-2018-8. dead. 30 August 2018. 2020-08-10. Business Insider Australia.
  15. Web site: Harpur. Phil. TPG Telecom Limited. BuddeComm. 2020-08-10.
  16. Web site: 2020-07-05. How the new-look TPG could transform the mobile market. 2020-08-10. Australian Financial Review.
  17. Web site: TPG, Telstra to share mobile network and spectrum for decades . 2022-10-22 . iTnews.
  18. Web site: 2022-09-30 . The ACCC Isn't Satisfied With the Telstra-TPG Regional Network Sharing Deal Just Yet . 2022-10-22 . Gizmodo Australia . en-AU.
  19. Web site: 2023-06-21 . Australian Competition Tribunal denies authorisation for Telstra and TPG regional network deal . 2023-07-10 . Australian Competition & Consumer Commission. English.
  20. Web site: Kelly . Zachariah . 2023-06-21 . The Australian Competition Tribunal Shoots Down the Telstra-TPG Network Sharing Deal . 2023-07-10 . Gizmodo Australia . en-AU.
  21. Web site: Wingerei . Kim . 2023-06-25 . Competition Tribunal confirms ACCC folly on Telstra and TPG deal - what's the scam? . 2023-07-10 . Michael West . en-US.