Telecom Network Sharing Agreements

Existing reports and research on mobile network sharing confirm that sharing infrastructure can lead to a substantial reduction in costs. Ericsson[2] (2012) predicted that asset savings from infrastructure sharing could reach 40% and the improvement in cash flow could reach 31% depending on the type of release. Booz-Company[3] (2012) stated that sharing infrastructure can save operators up to 30-40% of network costs. Coleago[4] (2010) has calculated that savings on CAPEX deployment and savings on network operation and network-sharing maintenance can be as much as 65%. The cases show that infrastructure-sharing transactions, in any form, must take into account the following anti-competitive effects: first, more cooks are spoiling the broth. Common assets, particularly assets, require agreement and coordination between the sharing parties. There are many challenges, including the direction of the parties` business objectives and other signatures. The development of these sites could certainly take longer in the future. However, the complete closure of legacy networks is a major, if not impossible, challenge, as there are many equipment that are not tracked by the operating equipment management system (for example.B. Bring their own devices inside corporate customers) or be in inaccessible locations (for example.

B subway tunnels). A joint venture is the place where, in the agreement, the companies form a joint venture to own and operate the networks, which means that the common infrastructure is consolidated, owned and operated (but the companies do not directly own the infrastructure). Note that joint ventures can also be tower companies that own towers and lease them to mobile operators for use. Finally, in this report, we discussed the experience gained in different European countries with regard to the exchange of mobile networks and fixed co-investments, with a review of the relevant legal cases, if any. Legal cases show that infrastructure-sharing agreements are generally seen by competition authorities as promoting faster network development and increased competition, and that there is no single form of cooperation advocated by competition authorities. The dominant classification criterion for network sharing is technology. The following figure gives an overview of the types of infrastructure sharing, depending on which features can be released. The reason for these two mergers was the creation of a unit in which the profitability of running a large-scale telecommunications company was more attractive. As Mr.

Talmesio pointed out, joint network exchange initiatives are very important to ensure that the sector progresses in a way that takes into account the consumer and the business. Combining or joint asset financing also reduces the resilience of a country`s communications infrastructure. Mobile networks or less independent infrastructure could make a country more vulnerable because it reduces the number of error points and robustness.