Telstra, TPG undergo project to improve mobile network quality

Value: Undisclosed.

Area: Technology, media and telecommunications.

Key players: King & Wood Mallesons technology law partner Kate Creighton-Selvay led the transaction, with support from solicitor Jonathan Beh.

Deal significance: As per a statement provided by King & Wood Mallesons, the agreement sees Telstra and TPG defragment and restack their respective 1800 megahertz and 2100 megahertz spectrum bands in Adelaide, Brisbane, Canberra, Darwin, Hobart and Perth, resulting in overall Telstra 4G speeds improving by between 10 and 20 per cent.

“This is the first time ever that two mobile network operators in Australia have agreed to mutually re-stack their spectrum holdings in the absence of regulatory direction. Spectrum is a highly regulated asset and telcos must comply with licences that only allow them to operate radiocommunications devices (eg antennas) within pre-determined spectrum bands,” King & Wood Mallesons said.

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“To implement the re-stack, Telstra and TPG agreed to temporarily authorise each other to use spectrum that they own so that they can adjust their radiocommunications devices to work in the new spectrum ‘blocks’ that are being defragmented. Telstra and TPG also agreed to work together to request that the Australian Communications and Media Authority (ACMA) vary their existing spectrum licences to reflect their final spectrum holdings after the re-stack.”

Commenting on the restack, King & Wood Mallesons lead partner Ms Creighton-Selvay said: “Being a first, a key challenge for this project was ensuring regulators, in particular the ACMA, understood the agreement structure and what Telstra and TPG were trying to achieve.

“We’re delighted to assist Telstra achieve an outcome that is already having a clear and tangible benefit for the company and its customers.”