Shared Mobile Phone Network Infrastructures

Mobile Phone Antenna Tower
Image Source: Gizmodo

Source: 'Mobile telecoms: Sharing the load,' The Economist, March 26th 2009.

In developing nations, firms providing mobile phone services often share physical infrastructure, and this article suggests that that may also increasingly take place in developed nations. Moreover, "three big European operators—France Telecom, KPN and Vodafone—have recently decided to outsource the running of their networks in some countries to equipment-makers: Nokia Siemens Networks, Alcatel-Lucent and Ericsson respectively."

Modalities include “site sharing” in which operators use the same antenna masts and equipment cupboards.

However, operators are reluctant to share one thing: the radio gear, known as the “radio access network” (RAN), that communicates with subscribers’ handsets. Telefónica and Vodafone have ruled out such sharing, at least for now. One reason is that firms which have competed for years on the quality of their networks still see the RAN as a source of advantage. Moreover, regulators in many countries do not want operators to get too chummy, because it could limit competition. In some countries RAN sharing is not allowed.

Advantages of sharing infrastructure include reductions in capital requirements, reduced operating costs, enabling providers to focus on core competencies, and smaller environmental footprint.