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Network Sharing: A Hot Topic, Again
Ovum, June 2008, Pages: 21
Many network sharing partnerships have been announced in recent months and this trend is likely to continue. The main driver is cost saving. Whatever the country, there is significant pressure on mobile operators’ cost structure. In developed countries, 3G coverage requirements and the impact of mobile broadband are among the drivers for network sharing adoption. In developing countries, the operators have to simultaneously face strong capacity growth, fast coverage expansion and low ARPU. These challenges require finding new ways to approach the business, and network sharing is clearly one of the identified strategies.
This report analyses the rationale behind the recrudescence of activity surrounding network sharing in the wireless industry. Potential savings can be tempting initially, depending on the selected network sharing approach, but the associated risks must be carefully assessed.
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