Network sharing – From paper product to bottom line impact

On the outset, the benefit seems obvious; Network sharing saves cost = increased profitability

But is it always straightforward or are there pitfalls to consider? The most talked about potential downside is of course how to ensure a collaborative spirit between competitors. Another obvious one is the technical integration with the respective non-shared portions of the networks. And then there are many more, not all being visible in the early stages of Network Sharing agreements. Typical prerequisites for success are clear and thorough planning in the setup phase, agreements on how to handle CAPEX and OPEX investments, a clear decision process and steering procedure between the collaborators and the jointly owned control entity. Agreements to facilitate this setup can preferably be set up and mediated by a standalone neutral party. This white paper outlines some of the common and well known facts about Network Sharing, but – more importantly – it also addresses some of the intricacies and their maybe less obvious resolutions.

But is it always straightforward or are there pitfalls to consider? The most talked about potential downside is of course how to ensure a collaborative spirit between competitors. Another obvious one is the technical integration with the respective non-shared portions of the networks. And then there are many more, not all being visible in the early stages of Network Sharing agreements. Typical prerequisites for success are clear and thorough planning in the setup phase, agreements on how to handle CAPEX and OPEX investments, a clear decision process and steering procedure between the collaborators and the jointly owned control entity. Agreements to facilitate this setup can preferably be set up and mediated by a standalone neutral party. This white paper outlines some of the common and well known facts about Network Sharing, but – more importantly – it also addresses some of the intricacies and their maybe less obvious resolutions.
Network sharing - from paper product to bottom line impact (pdf)
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