Shared networks: more than making wireless communication affordable

In the wake of the substantial financial commitments incurred by European and other UMTS network operators in the form of license fees, licensees have turned to network sharing as a means of reducing the capital requirements needed to bring 3G services to market. The reception from European regulators has been mixed, due to concerns that this inhibits competition, slow build-out, or otherwise result in reduced consumer benefits. The authors believe that the generic product life-cycle model provides insights that indicate that network sharing, within an appropriately constructed regulatory framework, is not a threat to vigorous competition in the 3G industry, and in fact, is one of the keys to stimulating the development of advanced, ubiquitous, affordable services.