NEW YORK (TheStreet) -- Vodafone (VOD) - Get Report stock is rising by 2.59% to $31.70 in afternoon trading on Wednesday, after its Australian division signed two commercial agreements worth more than 1 billion Australian dollars with TPG Telecom.

TPG Telecom will extend its Dark Fibre transmission network infrastructure to provide services to more than 3,000 Vodafone Hutchison Australia sites over 15 years.

This will allow Vodafone to expand its available bandwidth and the possibility of expanding to 5G.

"Network data traffic will continue to grow through customers' appetite for mobile content and the emergence of technologies such as the Internet of Things, and a Dark Fibre network will allow us to cater for future growth," Vodafone CEO Iñaki Berroeta said in a statement.

TPG Telecom will spend 300 million to 400 million Australian dollars for the expansion that will lead to 900 million Australia dollars in revenue over the 15 years.

In exchange, TPG Telecom will transition its mobile wholesale customer base to Vodafone's 4G data networks.

Image placeholder title

VOD

data by

YCharts