4G services are just around the corner. A number of operators are doing trials. Some are moving towards commercial launches. “Many” are thinking how do we make LTE profitable?
There is perhaps a thing or two to be learnt from the Russians. Russia’s Big 4, (Beeline, Megafon, MTS, and Rostelkom) have signed a deal with Yota whereby the latter will wholesale its LTE network to these operators, enabling their 4G services. The major network operators will be MVNOs of Yota with an option to become part owners of Yota’s 4G network; as a part-owner of Yota they would be entitled to a reduced wholesale rate.
The consortium has until July 1 to prepare proposals for the Russian government for the use of frequencies currently used by the military.
It is quite a practical solution:
stronger bargaining power when they are dealing with the network equipment providers;
lower capital expenditures required to set up and maintain existing networks;
avoid costly duplication of infrastructure. Why have two base-stations in the same location?
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