Vocus eyes 5G to offset low-margin NBN business

Vocus has renegotiated its existing group-wide mobile virtual network operator (MVNO) agreement with Optus to cover 5G services when they are brought to market.

In a statement, Vocus said that the renegotiation “includes access to the Optus 5G network and future technologies” and covered Vocus-owned brands like Dodo, iPrimus and Commander.

Vocus group managing director and CEO Kevin Russell said that while Vocus had historically “had a sub-scale market share” of mobile, the company was keen to change that, and saw 5G as a pathway to do so.

Russell also said that growing the company’s mobile reach would be welcome because it could take some of the heat off the low-margin NBN resale business.

“[This new Optus deal] enables our consumer resale business to rebalance its economics away from a complex and increasingly costly NBN wholesale broadband model to more sustainable and commercial margins in mobile,” he said.

Optus said that the renegotiated agreement is expected to be worth “in excess of $200 million” over five years.