This is fine tuning time for 3G. Slowly and steadily things are sorted out.
3G Mobile: Co-location - Operators forced to consider their options
As 3G licensees grapple with ways to finance the rollout of 3G networks, the incumbent 2G operators among them have begun contemplating previously unsavory strategies in a bid to keep their 3G vision afloat.
Co-location, the idea of operators jointly developing a network with the idea of sharing the facilities, was considered a flawed strategy just a few months ago. Cell sites and base stations were considered part of an operator's strategic assets, and the thought of sharing such an essential component was considered untenable.
Now, however, the high cost of 3G licenses and infrastructure has led to a massive shift in thinking as operators and licensees are forced to seek cost- saving solutions in a horribly skeptical credit market. Last week, Swedish incumbent Tele2 openly urged other operators to begin entering co-location agreements in a bid to beat down rollout costs. Sweden's four 3G licensees must build out at least 30% of their own networks, according to bid rules. Tele2 suggests that by using the same vendors, operators could share the cost of rollout and benefit from any economies of scale on the remaining portion of their rollout.
Pan-European operators are already pursuing cost-saving opportunities with vigor never before seen. Last month, France Telecom/Orange awarded the contract to roll out 3G networks across its mobile portfolio to Ericsson, Nokia and Alcatel, and Deutsche Telekom is set to make a similar move across its T-Mobile International unit. With at least 60 3G networks forecast to be rolled out in 2002, infrastructure vendors are likely to be as eager as 3G licensees to see network-sharing gaining pace. |
