Vodafone Australia announced its fiber network outsourcing and MVNO deals with TPG Telecom. The combined value will be more than $1 billion.

Vodafone Australia will source Dark Fiber and network services from TPG Telecom, while TPG will migrate its mobile wholesale customers to Vodafone network.

MT: Pleased for @VodafoneAU & @TPG_Telecom announcing major dark fibre network expansion & a MVNO agreements: http://t.co/nVntV2u3HS

— Vodafone Group (@VodafoneGroup) September 30, 2015

TPG will provide Dark Fiber and network services to more than 3,000 Vodafone Australia sites over a 15 year term. TPG will expand its fiber infrastructure by constructing about 4,000 km of new fiber to Vodafone cell sites across the country.

“Dark Fiber is about preparing Vodafone for the future. It is the next step in our network evolution and builds on our multibillion dollar network investment in recent years to further enhance the customer experience,” said Vodafone Australia CEO Inaki Berroeta.

Traditionally, telecoms have used microwave technologies and fixed-line infrastructure for backhaul, however legacy technologies are costly to operate. Dark fiber solves the challenges with backhaul and legacy infrastructure. The capacity of dark fiber is virtually unlimited, and the technology can be upgraded without the need to install new cables.

TPG has already delivered 900 km of fiber for VHA sites between FY 2011 and 2013. TPG will kick off the dark fiber network expansion immediately. Its deployment plan is to complete the majority of the existing Vodafone network in 2018.

TPG will investing $300 million – $400 million over the roll out period over the next 3 years. TPG will provide the dark fiber services to Vodafone Australia for 15 years from the date each site is delivered, with minimum contracted revenue over the term exceeding $900 million.

Baburajan K
[email protected]