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To share or not to share? The impact of mobile network sharing for consumers and operators

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  • Koutroumpis, Pantelis
  • Castells, Pau
  • Bahia, Kalvin

Abstract

This paper assesses the impact of mobile network sharing in Europe during the 2000-2019 period, looking at 140 mobile operators in 29 countries. We find that - consistent with economic theory - network sharing generated significant benefits for operators and consumers, including lower prices and improved network coverage and quality. This was driven by cost reductions, higher returns on investment and increased competition. These effects materialised heterogeneously, with the impact of network sharing depending on the type of sharing, the technology cycle in which it is entered into as well as the market position and size of the operators entering the agreement. This has important implications going forward as it shows that network sharing can play a vital role in the deployment of new 5G networks and that the technological and market specificity of each type of sharing agreement can significantly affect its outcomes.

Suggested Citation

  • Koutroumpis, Pantelis & Castells, Pau & Bahia, Kalvin, 2023. "To share or not to share? The impact of mobile network sharing for consumers and operators," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 277989, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse23:277989
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Network sharing; infrastructure sharing; mobile communications; network competition;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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