Telstra has pledged to address the competition regulator’s concerns about competition in 5G. 

The Australian Competition & Consumer Commission (ACCC) has accepted a court-enforceable undertaking from Telstra to address competition concerns about Telstra’s registration of radiocommunications sites in low band spectrum that interfered with Optus’ plans to roll out its 5G network nationally.

The ACCC is concerned that Telstra’s registrations of these 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. 

Low-band spectrum such as 900 MHz has the ability to transmit over greater distances and is typically used by mobile network operators to provide core network coverage and capacity.

Access to low band spectrum is crucial to providing core network coverage for mobile services and the rollout of 5G.

Earlier this year, Telstra registered 315 sites in the 900 MHz band, predominantly located in major cities or inner regional areas, under its existing licence. 

Of the 315 sites registered by Telstra on 31 January 2022, Telstra later deregistered 153, and 162 remain registered. Since January, Telstra has only used a limited number of these sites.

The new 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.

“Telstra’s undertaking promptly addresses the ACCC’s competition concerns and stops the likely harm to competition and consumers quickly. It is 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.”