Network sharing is one of those topics that makes economic sense, but often falters when it comes to adoption and implementation. Recently, I was asked about the prospects for network sharing given 5G capital investment requirements at a time of economic crisis. This is, of course, related to active sharing models where operators share the radio access network and spectrum. From financial perspective, service providers should be inclined to adopt some form of network sharing to reduce cost and improve their financial performance. Regulators who approve network sharing agreements are eager to encourage 5G adoption and reduce barriers to deployments. But in practice, it’s not that straight forward.
Network sharing has multiple complex dimensions: what is logical may not be practical. We have been in the same situation during the 2008 financial crisis when LTE was about 1 year from commercial deployments. This is roughly analogous to the situation today when we are still in the early phase of 5G deployments. I believe the 2008 financial crisis did help bring about active network sharing in particular, but it was limited to a few markets. Rather, the dynamics in each market plays the dominant role in determining the type and prospects for network sharing.
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