30th Sep 2015 05:30
NEWBURY (Alliance News) - Vodafone Hutchison Australia and TPG Telecom Ltd announced two commercial agreements with a combined value of more than AUD1 billion: a major Dark Fibre transmission network expansion and the migration of TPG's mobile customer base to the Vodafone network.
As per the first agreement, TPG will provide Dark Fibre and network services to more than 3,000 Vodafone Australia sites over a 15 year term.
In order to provide the services, TPG will extend its current fibre infrastructure by constructing about 4,000km of new fibre to Vodafone cell sites across the country.
The agreement extends the existing relationship between the two companies, with TPG having already delivered 900km of fibre for VHA sites between fiscal year 2011 and fiscal year 2013.
Construction of the dark fibre network will start immediately with deployment to the majority of the existing Vodafone network to be completed during 2018.
TPG estimates that it will incur incremental capital expenditure of AUD300 million- AUD400 million over the rollout period, the majority of which will be incurred over the next 3 years.
TPG will provide the dark fibre services for 15 years from the date each site is delivered, with minimum contracted revenue over the term exceeding AUD900 million.
The two companies have also announced one of the industry's largest-ever Mobile Virtual Network Operator or MVNO arrangements, with TPG to migrate its mobile wholesale customer base to the Vodafone network.
Copyright RTT News/dpa-AFX
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