Why network sharing is a good move for StarHub and M1's 5G plans

It could reduce site requirements by 30% to 40%.

Lesser telco giants StarHub and M1 have signed a MOU to study mobile infrastructure sharing focused on radio access network and backhaul transmission. What does this have to do with the their 5G plans?

According to UOB KayHian, the economics of network sharing become more compelling when sharing to build a new 5G network, which could be rolled out in 2019.

"Network sharing could reduce site requirements by 30-40%. For network sharing that encompasses new coverage, additional capacity and network modernisation, the combined savings in capex could be as high as 20-30%," the firm said, citing Ericsson.

More so, UOB noted that network sharing also reduces network-related opex by 25-30% due to savings from backhaul transmission, site rentals, utilities and maintenance.