Understanding carved-out Mobile TowerCo asset company related incentives for cost efficient 5G rollout and operation in the EU

Földes, Gábor ORCID: (2024) Understanding carved-out Mobile TowerCo asset company related incentives for cost efficient 5G rollout and operation in the EU. In: International Telecommunications Society (ITS) European Symposium Conference, 2024. április 15-16., Berlin.

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EU mobile telco industry faces to lacking economies of scale, asset utilization and efficiency that widen the investment GAP to reach EU Digital Decade 2030 target for full mobile broadband internet coverage. Operators request market consolidation (merger & acquisition) or at least market cooperation (mobile network sharing) to address challenge, however it is not well received by regulators, preferring infrastructure based competition over service based one. Therefore, operators are incentivized to look for efficiency improvement alternatives, like strategic asset reconfiguration, as network carve out into infrastructure, e.g. mobile tower companies (TowerCos). The aim of this paper to contribute to the understanding of TowerCo related incentives for efficiency improvement. The research question focused on addressing to what extant does TowerCo carve-out stimulate the cost efficient 5G rollout and operation in the EU. The research draws a theoretical model framework in which cases study scenarios are assessed with qualitative analysis. The research finding and the novelty is that TowerCo divestiture under common case concentrated incumbent operator market, limited virtual or new entrant operators, mainly operator-wing captive TowerCos, and matured network rollout stage, is less incentivizing the efficiency driven base station consolidation, compared to a network sharing. Nevertheless, on competitive markets with viable virtual operators, being incentivized to become full-scale operator, independent neutral host TowerCos and/or growing network rollout stage, TowerCos lowering entry barriers in value-chain and rollout unit costs, therefore positively contribute to more efficient 5G rollout.

Item Type:Conference or Workshop Item (Paper)
Uncontrolled Keywords:TowerCo, network sharing, cost efficiency, 5G, open RAN
JEL classification:G34 - Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
K21 - Antitrust Law
L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
L25 - Firm Performance: Size, Diversification, and Scope
L51 - Economics of Regulation
L86 - Information and Internet Services, Computer Software
Divisions:Corvinus Doctoral Schools
Subjects:Information economy
Media and communication
ID Code:10030
Deposited By: Erzsó Nyitrai
Deposited On:13 Jun 2024 07:12
Last Modified:13 Jun 2024 07:12

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