France puts pressure on cellcos to share networks
Published: 11 December, 2008
Sharing the build-out and operation of 3G radio networks is option that many operators are considering for the first time, as they come under pressure to reduce costs, and as network features become less important in differentiating services than software and brand. In some countries, regulators are actively encouraging this strategy in order to maintain the growth of advanced services even during a downturn. In France, the three mobile operators will come under scrutiny from regulator Arcep, with the aim of "encouraging" them to share their 3G network resources.
This would pressurize Orange, Bouygues Telecom and the Vivendi-Vodafone joint venture SFR to follow in the footsteps of the UK's cellcos, as well as those in non-European territories, such as India, where the government recently allowed carriers to share active as well as passive infrastructure.
Arcep, which has made a series of radical decisions lately to encourage the spread of broadband, media and advanced mobile services, states that this will be a public consultation exercise, but sources say the regulator is determined to push sharing through, and is keen to examine and understand the conditions and extent to which the three operators could share their 3G resources across France.
So far, the trio of 3G carriers has apparently been reluctant to share networks, although this is already allowed under French regulations. Like most cellcos, they have concerns about losing competitive edge in terms of coverage of plum areas, and losing control of priorities for future roll-out of the RAN. However, these may well be outweighed over the coming year by the intense pressure on their capex and opex budgets, and a greater willingness to consider sharing could, it seems, be given a helping hand by an element of compulsion from Arcep.
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