What Is A Ran Sharing Agreement

To accommodate these devices while minimizing capacity, mobile operators may consider sharing legacy network infrastructure. This means that there will be only one national legacy network, which will be used jointly by all operators, and operators will be able to redirect resources (for example, hand. B-work and frequencies) to next-generation networks. 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. 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%.

As has been said in previous literature, the benefits and costs of sharing infrastructure depend on the types of infrastructure sharing agreements. Sharing agreements can be categorized according to shared technology unit, commercial ownership and geographic distribution. Finally, a third-party provider that is not necessarily linked to a mobile operator leases the infrastructure to mobile operators to use it. This type is also called neutral host, with successful examples already on the market. There are tower companies (which are made up of 31.8% of the 154 infrastructure sharing agreements, as shown in Coleago`s network sharing database) that own towers and lease them to mobile operators to use them. The potential strategic implication of the neutral host is that the control power over the sites moves from mobile operators to the neutral host. In other words, the value of the website is transferred and additional counterparties for mobile operators are required. Active infrastructure sharing is the sharing of the network`s electronic infrastructure, including the radio access network (including antennas/transducers, a base station, networks and backhaul controllers) and the central network (servers and basic network functions). This form can also be categorized in MORAN (Multi-Operator Radio Access Network), where radio access networks are shared and dedicated frequencies are used by each sharing operator, MOCN (Multi-Operator Core Network), where radio access networks and access frequencies are shared, and basic network authorization, where central network and server functions are shared.

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