Infrastructure sharing is more popular in some markets than others, but the logic is always the same: competitors save on capital investment when sharing the cost of building infrastructure.
The trade off always revolves around control, ability to craft distinct value propositions and a shift of spending from capex to opex.
In this typology by Strategy Analytics, the least amount of sharing typically is for all mobile contestants to lease tower capabilities, rather than owning towers. That offloads the real estate, but retains all the rest of the active radio infrastructure, spectrum assets and backhaul.
The greatest amount of sharing might happen when real estate, radio infrastructure, backhaul and possibly some spectrum rights are shared.
Sharing almost always makes the most financial sense in rural areas, where revenue upside is limited and business models are typically most constrained. Sharing typically provides the least value when traffic volume, revenue and potential profits are highest, as in core urban areas.
Under those circumstances, owner’s economics are important.
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