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The benefits of Mobile Tower Sharing and Outsourcing

A new paper discusses the competitive differentiation among the telcos from a global perspective.

29 October 2009

While the large operators in Western Europe like Telefonica or Vodafone have instigated advanced active infrastructure sharing and outsourcing, telecom operators in developing markets are now beginning to look into such alliances that would help relieve them of heavy costs and speed their expansion into rural areas.

Network sharing and outsourcing are currently gaining acceptance across new markets including India, the Middle East and Africa as an effective way to cut down coverage costs and reduce time-to-market. India has already seen network sharing initiatives in their industry, while the Middle East and Africa is expected to see such alliances in a near future. Estimates indicate that tower sharing could help operators in India and the Middle East achieve total savings of US$ 4bn and US$ 8bn respectively in the next five years.

In a whitepaper entitled Mobile Tower Sharing and Outsourcing: Benefits and Challenges for Developing Market Operators, Capgemini sets out its vision for how operators across the globe face challenges in sustaining margins with declining ARPU and what the advantages are of adopting network sharing infrastructures.

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