Encourage infrastructure sharing

Initially, 5G areas are being created by upgrading existing telecommunications sites. However, the nature of 5G (particularly for mmWave in metropolitan areas) means each network will need to build many more base stations to provide deep coverage.

The number of small cells that will be needed to fully deploy 5G will be considerable, with Optus noting in a Parliamentary submission that to offer 1 Gbps speeds, cells would have to be around 200 to 300 m apart.74

Mobile network operators are obliged to offer access to transmission towers, tower sites and eligible underground facilities to other network operators under the ACCC's Facilities Access Code (FAC). However, for commercial operators to make these assets available, the commercial case for other uses must be clear. The cost and rollout speed of small cell deployment can be significantly reduced if three players share the same infrastructure.75

Physical access will have a diminishing importance as alternative solutions, such as Open Radio Area Network (Open RAN), become more widely adopted. The potential benefits extend beyond cost. Sharing means less installation of excessive equipment, reducing urban disruption and minimising visual pollution.

Other countries, including geographically smaller countries such as the United Kingdom, offer several examples of well-established network-sharing agreements, between very large network operators, that have expedited 4G and 5G network rollout and reduced costs for operators and customers without compromising competition. The case for both passive and active asset sharing has never been stronger.

Australia's mobile telephony market is highly competitive and has delivered world-class levels of coverage, speed, innovation and value. The substantial investment needed to deliver 5G infrastructure presents the risk that only one dominant provider, such as Telstra, will be able to profitably build a truly national 5G network. Greater incentives and standardised processes for sharing infrastructure would lead to a faster 5G rollout, comprehensive 5G coverage and more choice, ultimately creating better value for users.