Vodafone Taps Into TPG’s Dark Fibre For Mobile Data

On Wednesday Vodafone Hutchinson Australia announced it had signed a AU$1 billion dollar deal with the telecommunications provider to use its infrastructure for the next 15 years.

As part of the agreement, TPG will provide Vodafone with access to its Dark Fibre network, and build 4,000km of new fibre to help connect 3000 mobile cell towers across Australia.

This will allow Vodafone to expand its available bandwidth and the possibility of expanding to 5G.

The build will start immediately, with the majority of the additional network due to be completed in 2018.

Vodafone Australia will source Dark Fiber and network services from TPG Telecom, while TPG will migrate its mobile wholesale customers to Vodafone network. “What we are able to do with dark fibre is TPG will then provide the physical glass, we will ourselves, light up that fibre with our own equipment – that actually decouples the relationship of more data for more cost”. TPG also previously provided 900km of fibre to Vodafone sites between 2011 and 2013. TPG estimates it will spend A$300 million-A$400 million (€188 million-€251 million) on the project, and said it expects to generate a minimum of A$900 million in revenue over the terms of the contract.

Optus has responded to the surprise announcement of a TPG Mobile-Vodafone partnership, claiming it is still working with TPG to nut out a revised wholesale agreement.

Vodafone chief executive Iñaki Berroeta, said that the transmission agreement was a step change for the Vodafone network and would deliver lower latency, an exponential increase in capacity and enhanced resilience. For the customer, this means that they won’t have to worry about slow mobile data speeds, receive better coverage and see cheaper plans. “For customers, it will mean a higher-performing, 5G-ready network which will enable exciting future opportunities such as virtual and augmented reality applications”, Vodafone Inaki Berroeta said.

As for TPG mobile phone plan customers, the company is shafting Optus as its mobile phone service provider in favour of Vodafone.

TPG’s Teoh noted TPG’s customers ‘can look forward to the reliability and super-fast 4G data speeds of Vodafone’s network’.

David Teoh, TPG’s chief executive, said that he is very excited and proud about the deal.