We are helping our international clients investigate, evaluate, negotiate and implement all forms of network sharing all over the world. We offer complete support from initial evaluation workshops, to working alongside your teams, through to full implementation. We gained our initial experience through delivering the 3G RAN share between H3G & T-Mobile and the subsequent Orange / T-Mobile network merger in 2010 in the UK, where we were involved from conception through to negotiation, implementation, operations and management. Since then we have advised on multiple sharing agreements globally. RAN sharing in particular is becoming more and more prevalent and does radically transform P&L accounts, balance sheets and NPV. We can help you evaluate the right option for your business.
MNO cost base transformation and network quality improvement can be achieved via network sharing. However, negotiating and implementing sharing agreements is not straightforward. We have experience of designing, agreeing, implementing and operating network sharing agreements within MNOs. We have been instrumental in making sharing agreements deliver cost reduction and improved network quality. We have assisted MNOs globally with designing and implementing their own agreements. This experience enables us to help MNOs get to a deal quickly and start realising the value of the deal as soon as possible.
Sharing can range from basic passive site sharing to full active sharing of base station equipment and even radio spectrum or national roaming. Our experience has shown that the deeper and more willing the parties are to share the more significant the benefits and value that can be generated from sharing.
The Azenby Approach
Azenby has a proven approach used in many situations that has been shown to be very effective in previous engagements. We work side by side with MNO teams within the technical, commercial, legal and regulatory areas and use our knowledge and experience to help shape the technical solution, network design, overall approach and detailed sharing agreement. It is vital that any sharing agreement is constructed to cope with the specific circumstances, environment and local regulatory constraints that the parties are subject to. When appropriate, we work with larger partner consulting firms to form a complete end to end package of solutions from basic principles through to detailed design, business case development and detailed drafting of sharing agreements. We also encourage and recognise the value of engagement from the very top of each organisation downward to ensure all parts of each parties organisations are bought into the sharing initiative. Challenging pre-conceptions and reservations to ensure the right solution for each specific case is key.
Due to our experience we are able to offer solutions as the sharing discussions progress to enable rapid progress; we have been able to progress network sharing agreements from a standstill to a fully agreed set of detailed heads of terms in 7 months.
Even when network sharing agreements have gone through difficult phases we have been there to experience it. We can provide support and advice when times are difficult not just when they are easy.
Case Studies
Reinvigorating a Network Sharing Deal in APAC Country: In 2013 Azenby helped the CEO and CTO of a large MNO in an APAC country reinvigorate their network share deal and break down some of the technical and commercial barriers that were blocking progress. We carried out detailed technical and commercial engagement with both parties, assessed the current status of the deal from a commercial and technical perspective and compared this to other agreements we have seen or directly experienced. We challenged some of the pre-conceived assumptions and barriers that were preventing realization of the full value potential of the deal. In particular, we found areas on the technical approach such as site configuration and design as well as an equipment vendor strategy that could be further optimized to deliver better value whilst also achieving the requirements of both parties. In conjunction with the relevant local experts we devised a site design, vendor strategy and technical implementation approach which significantly reduced the cost of implementing the network sharing deal.
OUTCOME: A clear way forward was agreed with recommendations on commercial/contractual approach, spectrum strategy, operational set up and specific technical solutions.
Advisory support to an affected MNO in a recent European M&A case: Azenby worked closely with the CFO (now CEO) and other members of the management team of a European MNO in dealing with the impact of a merger between two of their competitors over a six-month period. We investigated all the issues and potential remedies, recommended negotiation strategies and tactics as well as drafting the outline Memorandum of Understanding (MOU) for the deal.
OUTCOME: Azenby leveraged previous network sharing and merger clearance experiences to secure a robust network sharing deal with the merged entity as part of the merger clearance remedies. As a result of our work our client’s objective was achieved
Network sharing projects in Europe and Africa: From 2012 to 2015 Azenby provided detailed technical support and brought operational expertise to a global consulting firm on three network sharing and acquisition projects; one in Africa and two in Europe. Azenby provided network architecture, design, engineering, modelling and operational advice and expertise to complement our partner’s end-to-end business development activities. We worked closely with our client and the impacted MNOs teams and completed reviews of differing options of technical and business structures and provided scenarios to navigate solutions for the MNOs concerned.
OUTCOME: As a result of the Azenby work, clear proposals and options were developed for the network technical and operational aspects to enable key decisions to be made by the impacted MNOs.
Technical and commercial advice for a network sharing project in Africa: During Q1 2016 Azenby provided detailed technical and commercial advice to two MNOs considering a network sharing initiative. Azenby provided network architecture, design, engineering, modelling and operational advice and expertise. We worked closely with the MNO teams and led them through the initial phases of the network sharing feasibility study. We developed a set of commercial guiding principles for the agreement, proposed a set of network sharing technical options and created a cost model to calculate the cost/benefit of pursuing each of the technical scenarios.
OUTCOME: Azenby developed and refined the technical and commercial options in conjunction with the MNOs and provided a full TCO comparison of the key Capex and Opex items impacted by the network sharing agreement. This enabled the MNOs to make a decision on proceeding to the next phase of the network sharing initiative.
If you would like to know more or need to leverage our expertise on network sharing and mergers please contact us.