We consider the randomized communication complexity of the distributed $\ell_p$-regression problem in the coordinator model, for $p\in (0,2]$. In this problem, there is a coordinator and $s$ servers. The $i$-th server receives $A^i\in\{-M, -M+1, \ldots, M\}^{n\times d}$ and $b^i\in\{-M, -M+1, \ldots, M\}^n$ and the coordinator would like to find a $(1+ε)$-approximate solution to $\min_{x\in\mathbb{R}^n} \|(\sum_i A^i)x - (\sum_i b^i)\|_p$. Here $M \leq \mathrm{poly}(nd)$ for convenience. This model, where the data is additively shared across servers, is commonly referred to as the arbitrary partition model. We obtain significantly improved bounds for this problem. For $p = 2$, i.e., least squares regression, we give the first optimal bound of $\tildeΘ(sd^2 + sd/ε)$ bits. For $p \in (1,2)$,we obtain an $\tilde{O}(sd^2/ε+ sd/\mathrm{poly}(ε))$ upper bound. Notably, for $d$ sufficiently large, our leading order term only depends linearly on $1/ε$ rather than quadratically. We also show communication lower bounds of $Ω(sd^2 + sd/ε^2)$ for $p\in (0,1]$ and $Ω(sd^2 + sd/ε)$ for $p\in (1,2]$. Our bounds considerably improve previous bounds due to (Woodruff et al. COLT, 2013) and (Vempala et al., SODA, 2020).