What is the financial impact of network investment and sharing?

Do you believe you need a lower cost per bit to set your company apart? This limits your options for new business. We found that investing in network performance brings financial returns. Explore our new analysis here.

Does network performance lead to better financials for service providers?

It seems the answer is often yes!

For many years, there has been an ongoing debate about communication service providers. Should they race to be the lowest common denominator – the cheapest per gigabit provider – whose network serves as a utility that is largely monetized by others?

This mindset has also led some service providers to engage in aggressive network sharing practice. However, in a new Ericsson analysis, we found that service providers that prioritized network quality during 4G launches typically saw strong return on their investments.

If we compare network quality leaders in 2018 against the network quality laggard for markets with available data, the leaders typically had better churn and ARPU. There was a similar trend in 2016 and 2017 as well.  

Read the report for specific case examples as well as a further analysis of the pros and cons of network sharing.

Download the report
Financial Impact of network investment - map

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