Network sharing is crucial for achieving 100% FTTP coverage but model choices will determine outcomes
"FTTP network sharing is evolving rapidly, with deals offering investors benefits such as debt reduction, lower deployment costs, prevention of competitive overbuild and facilitation of legacy network terminations; but the benefits vary depending on how the deals are done."
Operators in Belgium, Germany and Spain have recently announced network-sharing deals to help them to deliver fibre-to-the-premises (FTTP) or gigabit services to greater numbers of customers. Network sharing can theoretically help operators to increase their individual areas of service coverage while minimising the capex needed to expand physical infrastructure, minimise collective capex by avoiding overbuild, bring in additional cash to support deployment, help to share operating costs or provide revenue certainty.
Network sharing can be implemented using a variety of different models, and the way it is done can influence the outcomes at a national level. This article explores the models used for network sharing in those three countries, and considers some of the implications of adopting the different approaches.
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