Proposals for network sharing in Central and Eastern Europe

The problem

In a CIS country where the main operators had been awarded 800MHz LTE spectrum, the mobile network operators were interested in some form of LTE active sharing. Our client, a leading global investment bank, believed there was an opportunity for a third party to operate such a shared network, and had been invited to present its ideas to a meeting of the operators' working group. Analysys Mason was asked to develop and present an appropriate business model for third-party mediated active network sharing.

The solution

Our approach was built on a thorough review of sharing models, taking into account the particular situation of the market, and factoring in commercial, technical and regulatory issues. We developed a market-level business plan to estimate the savings that the MNOs could achieve if they engaged with our client's plan, as well as the revenue and cost implications for our client if the plan was implemented.

We supported our recommendations with a network demand forecast and roll-out model, which allowed the business planning team to clearly articulate expected efficiency gains under multiple scenarios to reflect the rapid pace of developments in the country.

The result

Our work enabled the client to engage in detailed negotiations with the MNOs in the market with a clear understanding of the key value drivers and opportunities for both the MNOs and its proposed venture.