Network sharing: Is this the new norm for telcos?

Summary

Network infrastructure sharing is examined as a growing response to the capital intensity of 5G rollout, with telecom operators worldwide weighing how to control network costs even as data demand and CAPEX requirements continue to climb as a share of revenue.

Two broad approaches to sharing are contrasted: agreements between established market leaders looking to jointly deliver a superior network and pull ahead of smaller rivals, versus wholesale models where a single shared network entity — as seen in Malaysia’s approach to 5G spectrum — serves all market participants under one infrastructure layer. Passive and active sharing are distinguished in detail, with active sharing further broken into multi-operator core network, multi-operator radio access network, and core network sharing arrangements, each carrying different trade-offs around regulatory approval and operator control.

Case studies from China, Australia, and the United States illustrate how sharing strategy differs by competitive context, along with the potential savings on capital and operating expenditure, and the knock-on effect for customers through reduced pressure on service pricing. The choice between passive and active sharing is shown to carry different implications for how much control an individual operator retains over its base stations, spectrum use, and long-term network differentiation strategy.

• Sharing types covered: passive sharing, active sharing (MOCN, MORAN, and core network sharing)
• Market examples: China Mobile and China Telecom, Telstra and TPG Telecom, and Malaysia’s Digital Nasional Berhad