Mobile network sharing: a post-recession reality
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Mobile network sharing – whether it is sharing tower sites or radio access network (RAN) components – is not a new concept in the industry. Despite the challenges associated, its merit as a cost-effective way to deploy or operate a mobile network has been evident for years. As operators look for ways to cut costs following the recession, they are showing increased interest in some form of network sharing, and as interest increases, the scale of announced network sharing deals is becoming larger. This report updates Ovum’s previous report on network sharing, and explores how the concept is gradually changing the structure of the industry.
Mobile network sharing – whether it is sharing tower sites or radio access network (RAN) components – is not a new concept in the industry. Despite the challenges associated, its merit as a cost-effective way to deploy or operate a mobile network has been evident for years. As operators look for ways to cut costs following the recession, they are showing increased interest in some form of network sharing, and as interest increases, the scale of announced network sharing deals is becoming larger. This report updates Ovum’s previous report on network sharing, and explores how the concept is gradually changing the structure of the industry.
Executive summary
In a nutshell
Ovum view
Network sharing is the logical thing to do
It’s time to rethink the structure of the mobile industry
Key messages
Network sharing deals
Network sharing is on the rise
Types of network sharing
Passive sharing
Active sharing
Situations for network sharing
Greenfield network
Fill-the-gap
Full consolidation
What is driving network sharing?
Reducing total cost of ownership (TCO)
Replace capex with opex
Outsource risks
Environmental benefits
Faster network deployments
Move competition to services
Challenges remain
Ideological obstacles
Regulatory obstacles
Loss of independence
Added complexity
The future of network sharing
Lessons from the recession
Coping with LTE network rollout
The need for clear guidelines
A “shared network” future for the industry
A hypothetical new industry structure
Arqiva’s “neutral host” concept
Five key questions for the future
Who owns the mobile network?
Who funds mobile network rollout?
What is the role of governments in new network rollouts?
What are the regulatory challenges?
What about spectrum auctions?
Role of vendors in network sharing
Cellular network infrastructure vendors
Nokia Siemens Networks
Huawei
The managed services viewpoint
Ericsson
Mobile Broadband Network Ltd (MBNL)
The infrastructure owner viewpoint
India – Indus Tower and GTL
UK and Ireland – Arqiva
Africa – Helios Towers
The small vendor viewpoint
Radio Design
Appendix
Methodology
Further reading
In a nutshell
Ovum view
Network sharing is the logical thing to do
It’s time to rethink the structure of the mobile industry
Key messages
Network sharing deals
Network sharing is on the rise
Types of network sharing
Passive sharing
Active sharing
Situations for network sharing
Greenfield network
Fill-the-gap
Full consolidation
What is driving network sharing?
Reducing total cost of ownership (TCO)
Replace capex with opex
Outsource risks
Environmental benefits
Faster network deployments
Move competition to services
Challenges remain
Ideological obstacles
Regulatory obstacles
Loss of independence
Added complexity
The future of network sharing
Lessons from the recession
Coping with LTE network rollout
The need for clear guidelines
A “shared network” future for the industry
A hypothetical new industry structure
Arqiva’s “neutral host” concept
Five key questions for the future
Who owns the mobile network?
Who funds mobile network rollout?
What is the role of governments in new network rollouts?
What are the regulatory challenges?
What about spectrum auctions?
Role of vendors in network sharing
Cellular network infrastructure vendors
Nokia Siemens Networks
Huawei
The managed services viewpoint
Ericsson
Mobile Broadband Network Ltd (MBNL)
The infrastructure owner viewpoint
India – Indus Tower and GTL
UK and Ireland – Arqiva
Africa – Helios Towers
The small vendor viewpoint
Radio Design
Appendix
Methodology
Further reading
LIST OF TABLES
Table 1: Hypothetical cost savings from network sharing in Europe
Table 2: benefit analysis of network sharing in India
Table 3: asset sharing business model
Table 1: Hypothetical cost savings from network sharing in Europe
Table 2: benefit analysis of network sharing in India
Table 3: asset sharing business model
LIST OF FIGURES
Figure 1: Types of network sharing and cost savings
Figure 2: Situations for network sharing
Figure 3: Neutral host cost savings for existing 2G and 3G networks
Figure 4: Neutral host cost savings for future 4G networks
Figure 5: RAN sharing
Figure 6: Radio Design’s network sharing product tree
Figure 1: Types of network sharing and cost savings
Figure 2: Situations for network sharing
Figure 3: Neutral host cost savings for existing 2G and 3G networks
Figure 4: Neutral host cost savings for future 4G networks
Figure 5: RAN sharing
Figure 6: Radio Design’s network sharing product tree
