Vodafone Optus deal improves EV connectivity across Australian rural and regional areas

Owners of popular EVs such as the MG4, Kia EV6 and Volvo EX30 with built-in Vodafone or Optus connectivity, will be able to get more network coverage when driving in rural and regional areas of Australia from early 2025.

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Image by - Neerav Bhatt

This is because of a new ACCC decision not to oppose a regional mobile network and spectrum sharing agreement between Optus and TPG.

Many MG Australia cars including popular EV models like the MG4 and ZS EV have included Vodafone connectivity used by the built-in Sat Nav and iSmart remote control app.

These EV drivers will get the most benefit out of this deal because to the best of my knowledge MG is the only EV manufacturer in Australia that chose Vodafone as the mobile operator for their built-in car connectivity.

Until this Optus deal Vodafone had by far the smallest mobile coverage of Australian mobile telcos, running a distant third compared to second place Optus and first placed Telstra.

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MG Australia Comment

A spokesperson for MG Australia told me that MG cars with connectivity will enjoy over double the network coverage:

"Vodafone will expand its national 4G coverage from approximately 400,000 square kilometres to around 1,000,000 square kilometres, reaching 98.4% of the population".

"They're also fast-tracking 5G network rollout in key areas, which means faster download speeds, smoother video calls, and enhanced online experiences for 5G compatible plans and devices in more places across the country".

"As the Vodafone and Optus coverage agreement, our vehicles become part of this network share agreement".

"In terms of functionality, if a car is in an area where it cannot pick up Vodafone signal, it will switch to Optus as back up. Likewise when Optus is unavailable, Vodafone will be used again".

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Optus Comment

Optus Interim CEO Michael Venter said the:

“ACCC’s decision is a great outcome for regional Australia, with the rollout of 5G infrastructure to be completed by around two years earlier than previously planned.

“By sharing our infrastructure and technology, Optus and TPG will be able to deliver even more choice and better services for regional customers.

“This arrangement will allow Optus to press the fast forward button on 5G infrastructure roll-out to more regional communities. It will also provide Optus with access to more spectrum so regional customers can experience 5G’s fast speeds, low latency, and increased capacity".

TPG Telecom Comment

TPG Telecom Chief Executive, Iñaki Berroeta, said the decision marks a new era for mobile services competition and consumer choice in rural and regional Australia.

“We are pleased with today’s decision and thank the ACCC for its consideration of our regional network sharing arrangement which will bring much needed competition to rural and regional areas,”

“With this arrangement, for the first time the TPG Telecom mobile network will cover most towns in Australia. We are excited about the opportunity to extend the reach of our awardwinning mobile services to even more people and businesses, and to deliver more competition and choice to all Australians"

Summary of ACCC Decision

• Three interrelated agreements for a Multi-Operator Core Network (MOCN) arrangement.
• Initial term of 11 years, with TPG having an option to extend by 5 years.
• Covers regional areas where about 17% of Australia's population resides.

Key Components:

• TPG authorizes Optus to use certain TPG spectrum in defined regional areas.
• Optus provides TPG with network services through active mobile network infrastructure sharing.
• TPG will transfer or decommission some of its existing mobile sites in the coverage area.
• TPG and Optus will continue to operate their own mobile networks in metropolitan areas (covering 81.6% of Australia's population).

ACCC's Assessment:

• The agreements are unlikely to substantially lessen competition.
• They represent a significant structural change to the mobile services landscape.
• Improved coverage for TPG in regional areas, enhancing its competitive ability.
• Support for Optus' regional 5G rollout through access to TPG's spectrum.
• Increased choice for regional consumers.
• Limited impact on infrastructure competition from TPG in areas where TPG is not currently a significant competitor.
• The improvement in TPG's services is likely to be greater than what TPG could achieve independently.