WCIS Insight: Network Sharing: a capital-light business model

Table of Contents

Chapter 1

• INTRODUCTION
  • Figure 1.1: The two levels of active infrastructure sharing

Chapter 2

• AUSTRALIA
• First-mover Hutchison sells half its 3G network to Telstra
• Telstra' s focus shifts to WCDMA850
  • Figure 2.1: Australia total mobile capital expenditure by operator, 1H02-1H07
• Hutchison maintains status quo under the network share
• Optus and Vodafone opt for a less integrated sharing arrangement
• Optus and Vodafone break away from the shared network
• Few regulatory hurdles in Australia

Chapter 3

• SWEDEN
• Svenska UMTS-Nat born out of a ' catastrophe for the nation'
  • Figure 3.1: Sweden: original applications of UMTS licence bidders
  • Figure 3.2: Sweden: Svenska UMTS-Nat population coverage, 2002-2006
  • Figure 3.3: Sweden: ownership structure of Svenska UMTS-Nat AB and Svenska UMTS-Licens AB
• Cost-saving potential and focus on service offerings drive joint-venture agreement
• Scope of network sharing extends deep into network
  • Figure 3.4: A schematic view of the shared network
• Tele2 and TeliaSonera develop, market and sell services independently
  • Figure 3.5: Sweden: mobile TV offerings of Tele2 and TeliaSonera over Svenska-UMTS Nat
• Regulator takes positive stance
• Operators purchase capacity on demand
  • Figure 3.6: Sweden: value of capacity purchased by TeliaSonera from Svenska UMTS-Nat, 2004-2007
• Termination rates applied per operator not per network
• Independence of joint venture company is key success factor

Chapter 4

• UK
• Drivers of network sharing: freeing up capex and reducing opex
  • Figure 4.1: Vodafone UK' s planned upgrades to network speeds
• Chronology of negotiations highlights complexity of the deal
• Competitive response: T-Mobile and 3 UK to integrate 3G networks
• Regulatory and competition authorities not likely to block deals

Chapter 5

• INDIA
• Infrastructure sharing yields cost savings
• Reasons for infrastructure sharing
• Improving rural coverage and maintaining quality of service
  • Figure 5.1: India, distribution of rural population by village size
• Sharing of towers expected to increase
  • Figure 5.2: India, non-operator tower companies (situation on 30 June 2007)

Chapter 6

• CONCLUSION