5G networks will make network sharing agreements between mobile operators technically possible. However, depending on the agreed and implemented quality-of-service isolation, the provision of services may lead to unsustainable business cases. In this paper, the economic feasibility of such arrangements is analyzed for the case of two operators. Concretely, while one network operator owns the spectrum, one virtual operator does not, and each one provides service to its subscriber base. Two sharing alternatives, namely, pooling and priority sharing, are studied regarding the profits that each operator gets. We conclude that the network operator is worse off under any circumstances under a pooling agreement, while a lump sum payment may leave the network operator better off under a priority sharing agreement.
Bibliographical noteFunding Information:
This work was supported by the Spanish Ministry of Economy and Competitiveness through projects TIN2013-47272-C2-1-R (cosupported by the European Social Fund) and BES-2014-068998 and partially supported by the Salesian Polytechnic University of Ecuador through a Ph.D. scholarship granted to the first author.
© 2018 Erwin J. Sacoto-Cabrera et al.