Meanwhile, satellite operators Iridium and Globalstar have recently raised funds to launch a second generation of low Earth Orbit (LEO) constellations to provide broadband and voice services. In addition, SpaceX, LeoSat and others have plans to invest a total of around USD 13 billion to USD 18 billion in new LEO constellations designed to provide global broadband connectivity11. Their plans seem commercially feasible given the lower cost of satellites and the development of the broadband market.1.2.4 Market consolidation Operators use consolidation and network-sharing strategies, mainly in developed markets, to generate efficiency gains and cost savings to fund further network investments and to develop innovative services. Mobile network operators (MNOs) need scale to compete for 4G licences, invest in mobile network infrastructure and develop services that rival their competitors’. Take BT’s USD 19 billion acquisition of mobile operator EE in the United Kingdom, for example. At first glance, the deal seems designed to expand BT’s market share and service portfolio by offering a \"quadruple play\" package. But there may be additional benefits to both BT and EE from synergies in subscriber acquisition costs (SAC) and lower customer churn, as evidence from quadruple play offerings in other European markets shows. On the negative side, however, \"in-market\" mergers and acquisitions can be expensive and time consuming, and success is uncertain. Operators in developed markets are under increasing pressure to reduce costs as revenue levels decline. When network coverage becomes less of a competitive differentiator, operators may need to consolidate networks (through network sharing) as a means of moving away from infrastructure investment and toward developing innovative services. In France, Bouygues Telecom and SFR concluded a network-sharing agreement in February 2014, enabling them to reduce cell sites by about 40 per cent. This has generated savings of about EUR 100 million per year for Bouygues Telecom and EUR 200 million per year for SFR12. Moreover, network sharing is not limited to developed markets. For example, eight major mobile operators in the Arab States and Africa announced plans in March 2014 to work together on a new network-sharing initiative to reduce costs and to improve rural broadband coverage13.1.2.5 Tech clusters Interesting examples of how to encourage broadband investment can be found in the \"Tech City\" initiative and through global finance technology intiatives. Tech City is a cluster of technology companies and support-service firms based in East London and endorsed by the UK government and the Mayor of London14. It is designed to attract investment in technology firms, creating jobs and economic growth15. In the last three years, Tech City has attracted investment from global markets, including the United States, Europe and Asia, and from investors such as Rekoo, Facebook, Google, Twitter, Amazon, Cisco, Intel, Microsoft, FourSquare and Pinterest16. As a result, UK operators Openreach and Virgin Media have made announcements to invest in affordable, high-speed broadband infrastructure and services in the area17 18.Another noteworthy trend is investment in the financial tech field (or \"fintech\"), an industry that develops technology solutions for the finance sector. Global fintech investment tripled to USD 12.2 billion from 2013 to 2014, creating mobile payment solutions, providing easy access to financing, and reducing fraud and identity theft. These solutions and processes are all factors in the development of a mature Internet ecosystem19. Silicon Valley is the world leader in attracting fintech funding, with over USD 2 billion in investments in 2014 alone. European investment totalled USD 1.48 billion with the UK (mainly in London’s Tech City) accounting for 42 per cent of European FinTech deals in 2014. 1.3 PPP investment strategies in broadband infrastructure Telecommunication operators make routine investments in core, backhaul and access networks by utilizing cash stockpiles, raising private financing, or, as previously mentioned, through consolidation. These \"business-as-usual\" investments are well rehearsed and require little regulatory or govermment intervention (and are therefore not extensively discussed in this report). 6 Trends in Telecommunication Reform 2016