Shared Carrier Services Market: Clear Understanding of The Competitive Landscape and Key Product Segments

Shared Carrier Services Market – Overview

A carrier network is an exclusive network infrastructure which belongs to a telecommunications service provider, for instance AT&T, Verizon, or Sprint. Telecom carriers are authorized by regulatory agencies to operate telecommunications systems. With the continuous growth of Long Term Evolution capacity and coverage requirements, operators want to introduce Long Term Evolution (LTE) in their existing Global System for Mobile (GSM) and Wideband Code Division Multiple Access (WCDMA) bands and are eyeing ways to exploit the spectrum efficiency to its maximum potential.

With the implementation of shared carrier solutions, companies could also introduce advanced technologies such as 4×4 MIMO, multi-band carrier aggregation, FDD/TDD convergence, and might also allow better spectrum flexibility and migration between WCDMA, GSM, and LTE. These enhancements will also prepare a company’s network to be compatible with 5G technology and Internet of Things. 4×4 multiple-input, multiple-output (MIMO) needs four antenna ports at the receiver and transmitter to increase the capacity of a Radio Frequency (RF) link. Multi-band carrier aggregation is used to effectively connect the non- adjacent bits of radio spectrum (both licensed and unlicensed) together, into a broader channel.

Shared Carrier Services Market – Drivers and Restraints

Major driving factors behind the growth of the shared carrier services market are the increasing pressure on telecom operators for profit margin. There are several reasons for this such as penetration in many markets has saturated limiting the number of subscribers further, intense price rivalry, increased churn plus pressure on Average Revenue Per User (ARPU) and operators to offer increasingly generous bundling packages. Furthermore, there is continued need for heavy investments in capacity expansions and new technology, mainly LTE, to satisfy the ever growing demand for higher data speed. Shared carrier services also provide opportunities for reducing the cost for running the network. Operating Expenses (OPEX) can often be reduced by terminating duplicate leased lines.

The shared carrier services market is currently concentrated with very few major firms controlling a majority of industry share. Furthermore, various licensing schemes and government regulations are likely to lead customers initially toward recognized players in the shared carrier services market.

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Automatic sharing of spectrum between GSM/ WCDMA and LTE; further enhanced user experience and capacity for LTE while taking advantage of legacy systems; and easy software upgrade are some of the driving forces of the shared carrier services market. Shared carrier services influence businesses at every level as it supports limitless offerings and spectrum and low network investment strategy. Companies are coming up with the concept of running both GSM and LTE at once, in the same spectrum band. Provision for legacy mobile handsets using GSM technology embedded in more or less all the devices is essential and more realistic, while instantly migrating mobile networks to the LTE technology would be considered best.

Shared Carrier Services Market – Segmentation

When segmented geographically, North America is expected to dominate the shared carrier services market with the presence of a large number of service providers in the region. North America is expected to be followed by Asia Pacific and Europe and other regions.

IT & Telecommunications industry is expected to be the primary contributor to the shared carrier services market as it would be the sole provider of the technology. Nevertheless, other industries would also be taking advantage of shared carrier services to run their daily operations faster and more effectively as every industry is becoming digital and opting for automation in more and more operational areas. The shared carrier services could help manage the cost to some extent.

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The shared carrier services market is expected to strengthen during the coming years. Given the aggressive rivalry in the shared carrier services market and the projects already underway, more operators will come under pressure to seriously evaluate different options for shared carriers.

Shared Carrier Services Market – Key Players

Some of the major players in the shared carrier services market are AT&T, cellXica, Ericsson, Sprint Corporation, Huawei Technologies Co., Ltd., ZTE Corporation, Cisco Systems, Inc., and Verizon Wireless.