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Infrastructure sharing and shared operations for mobile network operators From a deployment and operations view

The traditional and still prevailing mobile network operator (MNO) business model is based on the carrierpsilas full ownership of the physical network assets. However, rapid and complex technology migration, regulatory requirements, and increasing capital expenditures on one side and competitive environments, saturated markets, and pressure on margins on the other side advocate a new paradigm: the focus on ldquocritical success factorsrdquo and ldquokey assetsrdquo. Simultaneously, telecommunications equipment is commoditized. These trends are paving the way for the sharing of network infrastructure in the core and radio access networks among multiple operators. Challenges arise with regard to technical solutions to enable such business models in a multi-vendor landscape, but also in the context of the principal-agent-problem accompanying the re-allocation of assets and operational duties. This paper investigates the current technological, regulatory, and business landscape from the perspective of sharing network resources, and proposes several different approaches and technical solutions for network sharing. We introduce a model for estimating savings on capital and operating expenses, and present the results of our simulations for the various scenarios. Finally, we assess the benefits of ldquoManaged Servicesrdquo for the shared network case, a potentially highly attractive model to overcome some of the challenges posed by infrastructure sharing.