Vodafone, TPG merger: What you need to know

The long-running deal to merge Vodafone and TPG has finally been completed. This is what Aussie consumers need to know.

The merger between Vodafone and TPG has been completed after the two companies won their court battle against the Australian Competition and Consumer Commission.

The pair faced off with the consumer watchdog after they were originally blocked from merging last year.
The ACCC argued TPG was probably going to build its own mobile phone network and give Australian consumers a fourth choice, thereby increasing competition.

Vodafone mobile customers have been promised a better performing network as a result of the merger. William West / AFP

TPG’s branding will remain for existing customers. Picture: William West / AFP

TPG and Vodafone argued that TPG’s plans for a mobile network were scuttled by the government’s decision to ban Huawei, whose cheaper technology TPG planned to rely upon.

It was also argued the two should be allowed to merge so they could effectively compete with Optus and Telstra, arguing stronger competition would provide better outcomes for consumers than more competition.

The merger is now underway as the new company’s assets are combined to form TPG Telecom.

The name of the new company aside, its brands. which now include Vodafone, TPG, iiNet, Lebara, AAPT and Internode, will remain the same.

The company said Vodafone and TPG customers will remain Vodafone and TPG customers, and there will be no difference in the day-to-day experience on the network for either.

Over the next few months TPG’s existing spectrum (the radio waves that carry mobile communications which telcos bid against each other for access to) and its small cell assets will be added into the Vodafone mobile network, with the plan to bring more capacity to support more customers and boost performance across the network.

Vodafone’s mobile sites will also be connected to TPG’s fibre network to increase performance.

TPG Telecom CEO Inaki Bettoeta ringing the ASX bell as the new company lists on the stock exchange. Picture: Jane Dempster / The Australian.

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“We’ve always said that [the two companies] would be better together, and customers will start seeing many of the benefits of the merger from today,” TPG Telecom CEO Iñaki Berroeta said.

“The network synergies of the merger will provide significant benefits for customers, and we are fast-tracking their delivery to ensure increased network capacity is available as soon as possible.”

Mr Berroeta assumed the office of CEO of TPG Telecom on July 1 and will be paid $1.85 million per year in base salary.

He said customers in Canberra and Melbourne will be the first to benefit from the merger.

Canberran customers will receive a 20 per cent capacity increase as 99 sites have additional spectrum deployed in the 1800MHz band.

Small cells are also being deployed in busier parts of the Melbourne CBD at Collins Street and Docklands, not that as many people as usual will be there due to new lockdowns aimed at stopping the spread of coronavirus after a surge in cases.