Network sharing: Is this the new norm for telcos?

Summary

Network sharing is becoming a strategic consideration for telecom operators facing rising capital expenditure from 5G rollouts and increasing data demand. This report examines how network sharing is reshaping the telecom landscape, exploring both the financial pressures and the operational opportunities it presents. It covers the core components of network infrastructure, including electronic systems, physical sites, and towers, and explains why these assets are critical for service quality and user experience. The report details two main approaches to network sharing: collaborative agreements between market leaders to accelerate rollout and gain competitive advantage, and the establishment of single wholesale networks accessible to all market participants. It breaks down the types of network sharing—passive and active—highlighting their technical distinctions and regulatory considerations. Active sharing is further analyzed through models such as multi-operator core network (MOCN), multi-operator radio access network (MORAN), and core network (CN) sharing. Case studies from China, Australia, Malaysia, and the United States illustrate how different markets are adopting or resisting network sharing strategies. The report also reviews the impact of network sharing on capital and operating expenditures, total cost of ownership, and service innovation. Key questions addressed include: What are the main models of network sharing? How do regulatory environments influence adoption? What are the cost and operational implications for telcos? How does network sharing affect competition and customer pricing? This analysis is essential for telecom executives, infrastructure strategists, and industry analysts seeking to understand the future of network innovation and the evolving role of telcos.