Share and share alike: the rise of network sharing
Published: 26 March, 2008
Continued ...
Considering the savings to be made, it does beg the question as to why operators have not been more embracing of network sharing. One reason is that in the good old days, an operator's network coverage and its network quality (which determined factors like voice quality and call handling) were significant differentiating factors and this diminished the attraction of network sharing. However, given that 2G and 3G cellular technologies are based on standards which enshrine interoperability, operators must have released that differentiation based on network features was a finite opportunity.
Another factor which has prevented network sharing is that in many countries it was simply not allowed by regulators. However, while that may have been true for 2G, many regulators do now permit network sharing for 3G.
Vodafone is a good example of an operator which is now positively evangelical about network sharing for 3G. The operator is engaged in some level of network sharing in several of its national markets including Australia, Egypt, India, Ireland, Italy and Spain. Perhaps its highest profile sharing agreement is with Orange in the UK announced last year, where the two operators are sharing their RAN infrastructure.
Where a market leader like Vodafone journeys, you can be sure that other operators will follow. Late last year, again in the UK, T-Mobile and 3 announced their network sharing agreement.
Knowing what they know today, I wonder how many cellular operators would choose to turn back the clocks and implement network sharing as part of their early deployment strategies. My feeling is that many would and I wonder how many operators who've yet to commence their 3G roll-out will look to do so in a 'network sharing friendly' manner, or even form sharing partnerships from the outset in order to maximise the realised cost savings.
The move to LTE will likely take network sharing activity up a notch. The race will be to extend the services which take advantage of the enhanced network to as much of their subscriber base as possible and as quickly as possible, as opposed to simply trying to compete on network coverage and performance.
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