Vodafone and TPG Telecom have signed two transmission and wholesale agreements worth more than $1 billion.
Under the first 15-year agreement, TPG will provide dark fibre and network services to more than 3,000 Vodafone Australia sites.
To provide the services, TPG will extend its current fibre infrastructure by building 4,000km of new fibre to Vodafone cell sites across the country. TPG has already provided 900km of fibre for VHA sites between FY11 and FY13.
Construction of the network will start immediately with deployment of the majority of the existing Vodafone network to be completed by 2018.
TPG estimated that it would incur incremental capital expenditure of between $300 million and $400 million over the next three years.
Vodafone CEO, Inaki Berroeta, said the agreement will deliver lower latency, an exponential increase in capacity, and enhanced resilience to the Vodafone network.
“Dark fibre is about preparing Vodafone for the future,” he said. “It is the next step in our network evolution and builds on our multi-billion dollar network investment in recent years to further enhance our customer experience,” he said.
“For customers, it will mean a higher-performing, 5G-ready network which will enable exciting future opportunities such as virtual an augmented reality applications.”
TPG CEO, David Teoh, said the agreement will enable Vodafone to deliver a premium network service without the capacity limitations of legacy technologies.
The second agreement will see TPG migrate its mobile wholesale customer base to the Vodafone network under one of the industry’s largest ever mobile virtual network operator arrangements.
TPG’s Teoh said the agreement will provide reliable 4G data speeds to the company’s mobile customers.