In a shared network, multiple mobile operators share a common last-mile access infrastructure, including masts, antennas and radios, while each continues to operate an independent core network.
At the heart of infrastructure sharing is a delicate balance between cost savings and competition. From the early years of mobile, regulators favoured competition to stimulate the development of a nascent market. Regulators issued two spectrum licences for first-generation networks and, as more spectrum became available over time, they enabled additional operators. Today, it is common to have four or even five operators in a market.
Standing on the cusp of fifth-generation (5G) networks, the situation is dramatically different from the past. In 2012, global mobile subscriptions grew 9% year over year while global smartphone shipments increased by 40%. 2017 marks the first year that new smartphone unit shipments did not grow at all, while mobile subscriptions grew at just 3%.
To cover for slowing growth, mobile operators attempted, but largely failed, to monetize a surge in mobile network usage by consumers. For example, while the average number of minutes spent viewing video on smartphones increased by over 30% in 2017, mobile operator revenue grew by a fraction of 1%.
