Australian regulator ACCC has approved the proposed regional network-sharing agreement struck by Optus and TPG Telecom earlier this year.

First announced in April, the agreement paves the way for the telcos to create a regional Multi-Operator Core Network (MOCN), which will last for 11 years.

The regional MOCN will use both Optus and TPG Telecom spectrum.

Providing its take on the proposed network-sharing agreement, ACCC said it would not oppose the plans in a statement earlier today (September 5).

The ACCC said that the proposed agreements are "unlikely to substantially reduce infrastructure competition from TPG," but instead the competitive impacts of the agreements are likely to be limited to geographic areas where TPG is not currently a significant competitor and is unlikely to become one in the future.

“The ACCC carefully considered the arrangement proposed by Optus and TPG, as it represents a structural change to the mobile services landscape,” ACCC Commissioner Dr Philip Williams said.

“The agreements will allow TPG to provide better coverage in regional areas, which will likely enhance its ability to compete during the term of the agreements, improving choice for regional consumers. The agreements are also likely to support Optus’ regional 5G rollout, particularly through access to TPG’s spectrum."

As part of the agreement, in the regional coverage areas, Optus will use certain TPG spectrum to supply mobile services, while Optus will in turn provide TPG with network services. TPG will decommission most of its sites in the coverage area, while some will be transferred to Optus.

TPG said it expects to pay Optus approximately AU$1.17 billion (US$759 million) over the 11-year term. It notes that this figure "represents around one-third of the costs TPG Telecom estimates it would incur to build, operate, and maintain a similar network in regional Australia."

Both carriers will continue to operate their own mobile networks in metropolitan areas where 81.6 percent of the country's population live.

TPG Telecom had sought a similar agreement with rival telco Telstra.

However, that particular proposal was rejected by the Australian Competition Tribunal on the grounds that it would harm competition.