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TPG and Optus Team Up to Challenge Telstra in the Hunter Region After 3G Shutdown

today30 January 2025

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TPG and Optus Shake Up Hunter Region Mobile Market

In a game-changing move, TPG Telecom (which owns Vodafone) has entered a network-sharing agreement with Optus to dramatically increase coverage in regional Australia. As of 30 January 2025, this partnership is live, and TPG’s mobile coverage has more than doubled, increasing from 400,000 square kilometres to over 1 million square kilometres.

For Vodafone customers in the Hunter region, this means a significant improvement in coverage when travelling outside of Newcastle’s urban areas and into the countryside. Previously, Vodafone’s reach in regional NSW was limited, often making Telstra the only viable option for mobile service outside of major towns. Now, TPG Telecom’s family of brands, including Vodafone, TPG, iiNet, Felix, Lebara, Kogan, Lyca Mobile and AAPT Wholesale and will benefit from expanded coverage using 2,500 Optus mobile towers across Australia.

This is good news for anyone who regularly commutes between Newcastle and rural areas. Whether it’s:

  • Farmers and regional businesses that have struggled with poor Vodafone coverage
  • Tourists heading to Barrington Tops, the vineyards of the Hunter Valley, or Lake St Clair
  • Miners and FIFO workers in the Upper Hunter and out west towards Mudgee and Dubbo
  • Truck drivers and tradies needing reliable mobile service in fringe areas

Will This Put Pressure on Telstra?

For years, Telstra has held a monopoly in regional areas, with some estimates placing its market share at 70% in rural Australia. With Vodafone’s regional market share previously in the single digits, customers had little choice but to use Telstra if they wanted reliable coverage outside of cities.

Now, this network-sharing deal provides a real alternative, putting pressure on Telstra to improve its regional network to remain competitive. If Vodafone and Optus can provide similar or better coverage at a lower price, it could force Telstra to further invest in new towers and expand its network to keep its market share.

How Will Optus Benefit?

The deal also has major advantages for Optus customers. Under the agreement, Optus gains access to TPG Telecom’s spectrum, increasing network capacity and reducing congestion in certain areas. In simple terms, this means faster data speeds and improved call reliability for Optus users, particularly in growing regional towns like Maitland, Cessnock, and Singleton, where more users are competing for bandwidth.

Optus will also receive a financial boost, with $1.59 billion in payments from TPG to help expand its 5G network, further benefiting its customer base.

What About Newcastle and City Areas?

It’s important to note that in metro areas like Newcastle, Vodafone and Optus will continue to operate separate networks. This means customers in the city won’t see much change, but for those venturing outside of Newcastle’s suburbs, the improved network coverage will be a game changer.

What Does This Mean for You?

✅ Better coverage when travelling to regional and rural areas
✅ More bandwith for Optus customers due to increased spectrum availability.
✅ Potentially more investment in Telstra’s network due to increased competition.
✅ Faster data speeds and improved network reliability in fringe areas
✅ More choice of mobile providers, ending Telstra’s dominance in regional NSW

For many locals, switching providers was previously not an option due to poor coverage. Now, with this network-sharing deal, competition is heating up, and Telstra will likely need to respond with further infrastructure investments to maintain its grip on regional NSW.

The Future of Mobile Coverage in the Hunter Region

With 5G continuing to roll out and new network-sharing deals improving coverage, mobile connectivity in the Hunter region is rapidly evolving. While the 3G shutdown has left some gaps, Vodafone’s expansion via Optus’ infrastructure is a major step forward in ensuring more people stay connected—whether they’re in Newcastle, the vineyards, the Upper Hunter, or beyond.

 

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Written by: Newy Staff


Newy 87.8 FM is an FM radio station established in 2014 targeting Classic Hits music enthusiasts across Newcastle and The Central Coast, Australia. The station plays 60s 70s and 80s music. The station can be streamed online via this website or smart phone apps such as Tunein. In 2024 we opened a local newsroom dedicated to publishing Newcastle News.