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.
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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.
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