CMI Conference November 2014: A Market Model study

Transcript:CMI Conference November 2014: A Market Model study:
CMI Conference November 2014: A Market Model study of mobile infrastructure Sharing in Africa Mårten Sundquist KTH University Background – Network Infrastructure sharing A strong general trend From vertical to horizontal business model - cooperation by competitors - outsourcing of services - divestment of key network components Different technical solutions Regulatory aspects - Preservation of competitive environment Financial aspects Background – Africa Spectacular subscriber uptake development Mobile broadband dominating internet access Operators stronger position Financial situations increasingly challenging for MNOs Growing economies Research Questions What types of innovative network sharing cases can be identified in Africa and how do they differ from the ones in Europe? What are the business rationales of the new types of network operators? Methodology Market review Identification and data collection of innovative cases Analysis Case 1: Tower companies in Nigeria Tower companies strong development in Africa 2013-15 Business: - buy and lease-back towers - try to get additional operators per site => Network sharing Service scope wide in Africa - power solutions - security - design of new operator site solutions Nigeria Tower Co market 175 M population Growing economy 145 M SIMs (but still majority without phone) Networks growing Tower co 2-3BUSD divestment 2014 Nigeria Tower Co Business Rationale Off-load balance sheet Cost reduction Case 2: Rural Network operator Tanzania Tz 950 000 km2 38M inhabitants ~50% population coverage. Three main MNOs in Tz (Vodacom, Millicom and Bharti) Challenge: how to build cost efficient rural coverage Business idea: - Create independent rural “network operator” - Sell capacity whole-sale to network operators SNT - Rural Network Operator Independent network operator created 900 MHz spectrum from regulator Sell capacity whole-sale to existing operators Three operators on-board Some resistance from MNOs - Core business - SNT not always first Low margin business World unique setup. Rural Operator Business Actors 2G/3G Case 3: National combined LTE network in Rwanda Rwanda 26 000km2 - 12M population Three large MNOs (MTN, Millicom and Bharti) running 2G/3G One LTE license (170MHz on 800, 900 and 1800) given to KT/JV LTE capacity wholesale to three operators Compete via technology advantage World unique setup! Rwanda Integration Rwanda: Views of different actors Rwanda government + JV - Decreased overall investment - Quick rollout - Competition via technology MNOs - Intrusion in Core business - “Network ready for LTE” - Complex integration Vendors - Less sales End-users - Remain to be seen… Case 4: M-Pesa