Network Sharing Super Savings-up to 50 billion Euros off!

Network Sharing Super Savings -up to 50 billion Euros off! CANNES - February 19, 2002 - European operators can save between 30 - 50 billion Euros by sharing networks in the 3G rollout, according to an estimate by leading wireless advisor Northstream. However, without an intelligent and careful approach, these tempting Super Savings can cause a serious drop in efficiency and competition for both operators and users. With an estimated 130 billion Euros due in licence fees and facing at least another 120 billion in investment costs for the 3G rollout, the virtues of network sharing are evident to most European operators. Based on three typical cases in three European countries, Germany, Sweden and the United Kingdom, Northstream estimates the potential cost savings of network sharing at between 29 to 63 percent, depending on the number of operators involved and the level of cooperation. Based on a conservative approach to the total investment costs in technology, Northstream estimates the potential savings of network sharing at a staggering 30 - 50 billion Euros, depending on the level of co-operation and the number of operators. "Although we have always encouraged network sharing, operators should beware! They do face a difficult trade-off. Too much sharing will reduce their ability to differentiate from the competition. And from the regulators' point of view; too much sharing will hamper competition, but excessive financial burdens will result in higher prices for consumers," says Bengt Nordström, CEO at Northstream. Northstream has been actively working with shared networks for its clients, gaining knowledge and experience ranging from hands-on operational matters and technical issues to more analytic work. "For most operators network sharing has indisputable financial advantages. But it requires a thorough analysis of the technical, commercial and strategic issues as well," says Bengt Nordström. Bengt Nordström will discuss "Business Case for Network and Resource Sharing" at the 3GSM World Congress in Cannes, Thursday 21st 15.20 in Track 3-Partnership and Relationships. Meet us at hall 2, stand F46 and Hospitality suite 301 and 303, or follow the event through live updates at www.northstream.se. For more information contact : Bengt Nordström, CEO Tel : +46 70 558 47 09 bengt.nordstrom@northstream.se Northstream provides strategic technology and business advice to the global wireless industry. Northstream has assembled a multinational team with some of the world's best experts and analysts on wireless communication business and technology. Northstream works for several of the world's leading operators and system suppliers, e.g. Vodafone, AT&T, NTT DoCoMo, SmarTone, Sonera, Mitsubishi, Ericsson, Nokia and Siemens. Northstream also works for other consultancies such as Accenture and some of the leading investment banks and financial institutions. Northstream is established in Stockholm (Sweden), Sophia Antipolis (France), Tokyo (Japan), Hong Kong (HK) and Henley on Thames (UK). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/19/20020218BIT01390/bit0001.doc http://www.waymaker.net/bitonline/2002/02/19/20020218BIT01390/bit0001.pdf