On the Role of Infrastructure sharing for Mobile Network Operators in Emerging Markets

Abstract

The traditional model of single ownership of all the physical network elements and network layers by mobile network operators is beginning to be challenged. This has been attributed to the rapid and complex technology migration compounded with rigorous regulatory requirements and ever increasing capital expenditures. These trends, combined together with the increasing competition, rapid commoditization of telecommunication equipments and rising separation of network and service provisioning are pushing the operators to adopt multiple strategies, with network infrastructure sharing in the core and radio access networks emerging as a more radical mechanism to substantially and sustainably improve network costs. Through infrastructure sharing, developing countries and other emerging economies can harness the technological, market and regulatory developments that have fostered affordable access to mobile and broadband services. Similarly, the network operators entering or consolidating in the emerging markets can aim for substantial savings on capital and operating expenses. The present paper aims to investigate the current technological solutions and regulatory and the technical-economical dimensions in connection with the sharing of mobile telecommunication networks in emerging countries. We analyze the estimated savings on capital and operating expenses, while assessing the technical constraints, applicability and benefits of the network sharing solutions in an emerging market context.