The document discusses new business models for wholesale network sharing to help telecom operators address various challenges. It outlines drivers for new models like competition, license shortages, coverage obligations, and debt. Wholesale network sharing allows operators to leverage one another's infrastructure and assets to improve scale and reduce costs. The models involve a neutral third party managing shared infrastructure through service level agreements. Regulators are becoming more open to such arrangements and investors are interested in telecom infrastructure. Case studies show how wholesale sharing can help operators gain access to new licenses or expand rural coverage. The ecosystem is developing to facilitate new business models in response to industry pressures.

1. New business models
wholesale network
sharing
Bo Carlgren
Senior Engagement Director Network Sharing,
Ericsson Managed Services

2. Accelerating drivers for new
business models
› Leverage scale advantages to meet ARPU pressure
Competition
› Example: Spain, pressure on mobile broadband tariffs
License/ › Spectrum and licenses shortage
spectrum
shortage › Example: LTE 800 typically only available in three slots
Coverage › Regulators requirements for LTE rural coverage
obligations › Example: Italy, Czech Republic, Germany
Debt › Free-up cash through asset divestures
situation › Example: Southern and Western parts of Europe
Commercial in confidence | 2012-09-28 | Page 2

3. Managed services Taking next
steps in capacity models to
respond
Managed Services
models’ maturity Customer centric
managed services
New capacity models
Wholesale network sharing
-RAN
Existing capacity models Telecom -Small-cells
Backhaul providers managed services
Cloud
Hosting
Carriers carrier
2000 2012
Capacity models like wholesale network sharing
part of long-term view of Managed Services market
Commercial in confidence | 2012-09-28 | Page 3

4. New demands met by
wholesale nw sharing
Operator Y
Operator X Operator Z
End-to-end Capacity
Wholesale NetCo
Infrastructure investors Ericsson
3-party model providing shared capacity on demand
Independent NetCo owns active and passive assets and uses operators licenses
3-party provides neutral governance and individual differentiation through SLA/KPIs
Commercial in confidence | 2012-09-28 | Page 4

5. Regulator development and
interest from investors
› Investors interested in telecom as infrastructure
Operators Investors
Wholesale
model
Regulators
› Regulators more liberal for LTE and new licenses
Vendors
Experiencing momentum in the market
Commercial in confidence | 2012-09-28 | Page 5

6. How wholesale can be
done in reality – case 1
Issue Drivers Solution
Operator A
No LTE 800 Reduce costs
license Combined 2G/3G
Improve network modernization and
NetCo
LTE build out
Existing Nw
Operator B acquired + shared
build-out by NetCo
License, but no Become a true
sites MNO
Commercial in confidence | 2012-09-28 | Page 6

7. How wholesale can be
done in reality – case 2
Issue Drivers Solution
Consolidation of
Operators looking to existing low
Economics to divest network NetCo frequency network
meet regulator assets to reduce
requirement for debt Shared build-out of
early coverage LTE in rural areas
in rural for LTE Off-set lost revenues
800 when termination Existing network
rates to be cut acquired + shared
build-out by NetCo
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8. How value is created in
wholesale
Just in time
Multi-party Better
expansions/
sharing risk/reward
roll-out
Commercial in confidence | 2012-09-28 | Page 8

9. the foundations to make
wholesale happen is there
› Wholesale models developing to meet
license/spectrum shortage and financial distress
Operators Investors
› Investors interested in telecom as infrastructure
Wholesale
model
Vendors Regulators
› Regulators more liberal for LTE and new licenses
Eco-system forming to respond to accelerating drivers
for new business models
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