Mobile operator Vodafone Hutchison Australia's $1 billion deal to use TPG Telecom's telecommunications infrastructure is moving ahead of schedule.
Vodafone Hutchison chief technology officer Benoit Hanssen says "progress is slightly ahead of plan" but will take another two years to complete the program.
"The TPG fibre project ... is a multi-year deployment. Drawing fibre to all the base stations takes a bit of time.
"The first sites have come on air, where we replace the existing transmission with the TPG transmission, but the bulk of the network is still to be done," he said.
Vodafone Hutchison - a 50/50 joint venture between Vodafone Group and Hutchison Telecommunications in Australia - announced the infrastructure deal in September.
At the time, TPG said it would spend between $300 million and $400 million on the fibre project, which is projected to deliver minimum revenue of $900 million over the 15-year contract.
Under the deal, TPG will resell Vodafone Australia's mobile services, dropping Optus as its supplier.
The deal would help Vodafone Hutchison strengthen its 4G mobile coverage around Australia, and roll out fifth-generation technology, delivering super-fast download speeds, Mr Hanssen said.
UK-based Vodafone Group hopes to launch 5G mobile services in Europe and Australia in 2020, Vodafone chief technology officer Johan Wibergh told reporters at a breakfast briefing in Sydney on Tuesday.
Mr Wibergh is visiting the company's Australian and New Zealand operations for the first time following his appointment as Vodafone Group's chief technology boss in 2015.
The Australian telecoms market was "fairly advanced, fairly early out", noting the public's keenness to "embrace new technology", he said, adding that local smartphone usage was one of the highest in the world.
Vodafone Hutchison and Vodafone Group saw data traffic jump by around 70 per cent in 2015, with videos on websites accounting for the majority of the spike, according to the two technology chiefs.