TPG Telecom has warned that Australia's Universal Outdoor Mobile Obligation (UOMO) risks degrading metro mobile services as carriers redirect spectrum to meet vast coverage mandates.
The legislation, effective December 1, 2027, requires Telstra, Optus, and TPG to provide SMS and voice coverage across 5 million square kilometres of landmass and 37,000 kilometres of roads. The plan relies heavily on Low Earth Orbit satellites and direct-to-device technology—standards that remain unproven at scale.
"With finite spectrum supporting critical mobile services, operators need certainty that the connectivity millions of Australians rely on in our major cities won't be put at risk," a TPG spokesperson told iTnews. The company is calling for extended consultation on technology readiness, spectrum allocation, and funding before the mandate takes effect.
What this means in practice
The trade-off is real: spectrum redirected to regional coverage means less capacity where demand is highest. For enterprise customers in Sydney, Melbourne, and Perth—already dealing with congestion during peak hours—this matters.
TPG's concerns stand in contrast to the government's position. Communications Minister Wells maintains the obligation complements existing networks and boosts regional safety without harming urban services. The government calls it a "world-first" for emergency communications and agricultural connectivity.
Three things to watch
First, whether direct-to-device technology matures in time. The standards exist for 4G; 5G implementations are still pending.
Second, how carriers allocate spectrum between metro and regional networks. TPG faces this challenge as the smallest of the big three, with less spectrum to work with than Telstra or Optus.
Third, the February 27 TPG full-year results may reveal more about the financial impact of meeting these obligations.
The fine print matters here
The ACCC rejected a Telstra-TPG regional network sharing proposal in 2022, citing competition concerns. That decision means TPG must build coverage independently—a costlier path that explains some of the pushback.
TPG reports unrelated metro service disruptions in 2025-26, separate from UOMO concerns. The company's track record on network reliability will face scrutiny as it balances urban quality against rural expansion mandates.
History suggests regulatory deadlines slip when technology isn't ready. We'll see if December 2027 holds.