Abstract: TPG Telecom has entered a binding Share Purchase Agreement to sell its fibre network infrastructure and Enterprise, Government, and Wholesale (EGW) fixed  business, including Vision Network, to Vocus Group for $5.25 billion. 

Following the Optus/TPG mobile deal, this transaction reflects a network consolidation trend. This is in response to low returns on invested capital in Australia’s telecommunications industry. The industry is moving towards improved capital efficiency by separating assets with different risk/return profiles, and restructuring of ownership to improve efficiency. This deal will position Vocus as a more significant player in enterprise connectivity, while TPG will focus on mobile operations.