The Australian Competition and Consumer Commission (ACCC) granted permission for the deal with Optus, a subsidiary of Singapore Telecommunications, which focuses on sharing regional networks.
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This comes after the ACCC had previously blocked a similar proposal between TPG and its competitor, Telstra.
As a result of the agreement, TPG's network is set to double in size starting next year, enabling the company to increase its market share.
The initial announcement was made in April and is dubbed the “Multi-Operator Core Network” (MOCN).
However, Telstra will continue to maintain the largest mobile network across Australia. Following the ACCC’s announcement, TPG’s shares saw a rise of up to 1.4%, while Telstra saw its shares dip by over 1%.
TPG has confirmed it will pay Optus service fees totalling around A$1.59 billion over the 11-year duration of the partnership, a detail that was first disclosed when the deal was announced in April.
The ACCC stated that the network-sharing arrangement is unlikely to significantly affect competition in wholesale and retail mobile services, noting that potential concerns would primarily arise in areas where TPG is not already a strong competitor.
Additionally, TPG expects to incur non-cash charges of between A$230 million and A$250 million in fiscal 2024, related to the 755 network sites involved in the deal. The company said that it anticipates the expanded network will become fully operational by early 2025.
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