Collaborations in Telecom: Allies or Competitors?
Posted: Thu Dec 05, 2024 9:33 am
Should operators join forces to build fifth-generation networks?
Recently, mobile operators in the United States have come up with united kingdom phone number library an initiative: 5G networks should be built with active support from the government. Part of this initiative was due to the reduction of the risk of spying by Chinese network equipment manufacturers. However, the main reason is the cost of deploying a nationwide 5G network. It is unreasonably high compared to the potential profit that each of the mobile operators can make individually.
Each operator built the previous generation mobile networks (4G, LTE) independently. Although there are cases of joint use or lease of antenna-mast structures and towers in world practice, for the most part, operators are the owners of the 4G network infrastructure.
5G deployment is associated with high capital expenditures, as the number of cells per square kilometer must be significantly increased in order to provide high data rates and low signal latency.
You to me, I to you
Experts believe that despite the fact that 5G standards are still in development, successful business cases will be based on the shared use of infrastructure: both active and passive parts.
If the government does not shoulder most of the costs of 5G deployment, operators will be forced to share tower resources, radio access networks, and transport networks. If this scenario is realized, operators will no longer be able to compete on basic communication services and their quality, since they will be the same for everyone. Competition will lie in the plane of digital services with added value.
From public to private
If mobile operators share networks, how exactly will they be able to differentiate their services and attract subscribers?
According to Virat Patel, managing director of Pioneer Consulting Asia, who researches network sharing in the 5G era, telecom companies must adopt the latest technologies to offer services based on ever-changing consumer demand.
One such technology is the so-called digital ecosystem applications. The first application of this kind on the market was Wechat. With just one application, the user can manage their daily needs, from voice communication and messaging to ordering a taxi, groceries and paying bills. A reliable application and a strong partner network will allow mobile operators to increase the loyalty of existing customers, as well as sell them additional services.
The next "technology of success" is video services. If today telecom companies compete with OTT services and even try to fight them, then in the era of 5G the situation may change dramatically. If the operator offers a content aggregator platform on which various OTT applications will be collected, then it will be able to use its own billing - which will become an additional source of growth.
Recently, mobile operators in the United States have come up with united kingdom phone number library an initiative: 5G networks should be built with active support from the government. Part of this initiative was due to the reduction of the risk of spying by Chinese network equipment manufacturers. However, the main reason is the cost of deploying a nationwide 5G network. It is unreasonably high compared to the potential profit that each of the mobile operators can make individually.
Each operator built the previous generation mobile networks (4G, LTE) independently. Although there are cases of joint use or lease of antenna-mast structures and towers in world practice, for the most part, operators are the owners of the 4G network infrastructure.
5G deployment is associated with high capital expenditures, as the number of cells per square kilometer must be significantly increased in order to provide high data rates and low signal latency.
You to me, I to you
Experts believe that despite the fact that 5G standards are still in development, successful business cases will be based on the shared use of infrastructure: both active and passive parts.
If the government does not shoulder most of the costs of 5G deployment, operators will be forced to share tower resources, radio access networks, and transport networks. If this scenario is realized, operators will no longer be able to compete on basic communication services and their quality, since they will be the same for everyone. Competition will lie in the plane of digital services with added value.
From public to private
If mobile operators share networks, how exactly will they be able to differentiate their services and attract subscribers?
According to Virat Patel, managing director of Pioneer Consulting Asia, who researches network sharing in the 5G era, telecom companies must adopt the latest technologies to offer services based on ever-changing consumer demand.
One such technology is the so-called digital ecosystem applications. The first application of this kind on the market was Wechat. With just one application, the user can manage their daily needs, from voice communication and messaging to ordering a taxi, groceries and paying bills. A reliable application and a strong partner network will allow mobile operators to increase the loyalty of existing customers, as well as sell them additional services.
The next "technology of success" is video services. If today telecom companies compete with OTT services and even try to fight them, then in the era of 5G the situation may change dramatically. If the operator offers a content aggregator platform on which various OTT applications will be collected, then it will be able to use its own billing - which will become an additional source of growth.