Mobile Network Operators Should Partner While the Window of Opportunity Exists
What is triggering the surge in cooperation?
Maturing markets are forcing operators to find new ways to reach financial targets – and the financial crunch only brings more pressure to better manage CAPEX to sales ratios. Despite years of cost reductions and various levels of site sharing, there is increasing recognition that more significant and sustainable cost-base redesign is now required. This can be achieved through structural reforms and deeper RAN cooperation.
Spectrum is being reallocated and new frequencies are being awarded through auctions. In addition to raising cash for governments, the objective of these auctions often include extending broadband in rural areas or re-balancing operators’ spectrum ownership, especially at lower frequencies. For this reason, these auctions are being designed to allow, and even encourage, bid consortiums. Bid consortiums enable the sharing of license costs, and can also increase chances of winning valuable spectrum.