The ACCC has accepted Telstra’s court-enforceable undertaking in addressing its competition concerns regarding its registration of radiocommunications sites in low-band spectrum that interfered with Optus’ plans to roll out its 5G network nationally.
Following an intensive investigation, the ACCC was concerned that Telstra’s registrations of their sites had the substantial purpose or likely effect of preventing or hindering Optus from deployment of its 5G network and from engaging in competitive conduct in the retail mobile market. Access to low-band spectrum is crucial to providing core network coverage for mobile services and the rollout of 5G.
The undertaking requires Telstra to deregister all remaining radiocommunications sites it registered with the ACMA in the 900 MHz spectrum band in January 2022 that would have prevented Optus from early access to the spectrum.
“Telstra’s undertaking will ensure Optus is not hindered from expanding its 5G rollout, giving more Australians access to a choice of 5G services in regional and metropolitan Australia,” ACCC Commissioner Liza Carver said.
“This is critical as 5G network coverage becomes an increasingly important factor in consumer choice in mobile phones and mobile plans.”
Commissioner Carver stated that the company’s undertaking promptly addresses the ACCC’s competition concerns, stopping the harm to competition and consumers while making it an efficient and effective way to achieve a positive market outcome.
“We were concerned that Telstra’s registration of 315 radiocommunications sites in the 900 MHz spectrum band had the substantial purpose or likely effect of lessening competition by Optus, as Telstra knew of the importance of this spectrum band to Optus’ 5G rollout plan,” she said.
“Competition is key to driving innovation and investment in new technology and providing consumers with greater choice, better quality services and lower prices.”
Telstra has also undertaken to ensure that its board of directors, CEO and other senior staff are given competition law compliance training.
Telstra, Optus and TPG hold licences granted by the ACMA under the Radiocommunications Act 1992 to use the low-band spectrum to provide mobile services.
While Telstra holds a licence to use the low-band spectrum until 30 June 2024, the company was making little use of it as it had not registered a new site since 2016.
In December 2021, the ACMA held an auction for licences in the 850 and 900 MHz spectrum. Optus was the successful bidder for all of the 900 MHz spectrum on offer.
When Telstra became aware that the ACMA would consider early access applications for the 900 MHz band spectrum, it began registering 315 sites in the 900 MHz band under its existing licence in major cities or inner regional areas.
Of the 315 sites registered by Telstra, only 162 remain registered and only a limited number of the sites are used.
Source: ACCC Media Release. Content has been edited for style and length.