Telecommunications Predictions - TMT Trends 2008 – Part 2

Getting Mobile Indoors May Spur Network Sharing

Many countries in the developed world boast up to five mobile network operators. Each may have two complementary networks, one based on 2G technology, the other based on 3G. The fixed cost of licensing and building each network can be tens of billions of dollars⁵⁶.

The operational costs are significant. Since the turn of the decade, mobile operators have undertaken numerous upgrades to their network, adding not just 3G but a range of other network enhancements, most recently HSDPA. While the pace of network upgrades has been steady, revenue growth in developed markets has slowed⁵⁷. At the same time competition has generally intensified, further straining margins⁵⁸ .