New business models wholesale network sharing


Published on

THIS IS THE EVOLUTION/ NEXT STEP WITHIN MANAGED SERVICES by Bo Carlgren,Senior Engagement Director Network Sharing,
Ericsson Managed Services

New business models wholesale network sharing

  1. 1. New business modelswholesale networksharingBo CarlgrenSenior Engagement Director Network Sharing,Ericsson Managed Services
  2. 2. Accelerating drivers for newbusiness models › Leverage scale advantages to meet ARPU pressure Competition › Example: Spain, pressure on mobile broadband tariffs License/ › Spectrum and licenses shortage spectrum shortage › Example: LTE 800 typically only available in three slots Coverage › Regulators requirements for LTE rural coverage obligations › Example: Italy, Czech Republic, Germany Debt › Free-up cash through asset divestures situation › Example: Southern and Western parts of EuropeCommercial in confidence | 2012-09-28 | Page 2
  3. 3. Managed services Taking next steps in capacity models to respond Managed Services models’ maturity Customer centric managed services New capacity models Wholesale network sharing -RANExisting capacity models Telecom -Small-cells Backhaul providers managed services Cloud Hosting Carriers carrier 2000 2012 Capacity models like wholesale network sharing part of long-term view of Managed Services market Commercial in confidence | 2012-09-28 | Page 3
  4. 4. New demands met bywholesale nw sharing Operator Y Operator X Operator Z End-to-end Capacity Wholesale NetCo Infrastructure investors Ericsson 3-party model providing shared capacity on demand Independent NetCo owns active and passive assets and uses operators licenses 3-party provides neutral governance and individual differentiation through SLA/KPIsCommercial in confidence | 2012-09-28 | Page 4
  5. 5. Regulator development andinterest from investors › Investors interested in telecom as infrastructureOperators Investors Wholesale model Regulators › Regulators more liberal for LTE and new licensesVendors Experiencing momentum in the marketCommercial in confidence | 2012-09-28 | Page 5
  6. 6. How wholesale can be done in reality – case 1 Issue Drivers SolutionOperator A No LTE 800 Reduce costs license Combined 2G/3G Improve network modernization and NetCo LTE build out Existing NwOperator B acquired + shared build-out by NetCo License, but no Become a true sites MNO Commercial in confidence | 2012-09-28 | Page 6
  7. 7. How wholesale can bedone in reality – case 2 Issue Drivers Solution Consolidation of Operators looking to existing low Economics to divest network NetCo frequency network meet regulator assets to reduce requirement for debt Shared build-out of early coverage LTE in rural areas in rural for LTE Off-set lost revenues 800 when termination Existing network rates to be cut acquired + shared build-out by NetCoCommercial in confidence | 2012-09-28 | Page 7
  8. 8. How value is created inwholesale Just in time Multi-party Better expansions/ sharing risk/reward roll-outCommercial in confidence | 2012-09-28 | Page 8
  9. 9. the foundations to makewholesale happen is there › Wholesale models developing to meet license/spectrum shortage and financial distress Operators Investors › Investors interested in telecom as infrastructure Wholesale model Vendors Regulators › Regulators more liberal for LTE and new licenses Eco-system forming to respond to accelerating drivers for new business modelsCommercial in confidence | 2012-09-28 | Page 9
  10. 10. Commercial in confidence | 2012-09-28 | Page 10