2 Accelerating Broadband Deployment Through Network Sharing and Co-investment Author: Malcolm Webb, Partner, Webb Henderson 2.1 Introduction: the value of network sharing Governments around the world recognize that there are substantial societal benefits in deploying new broadband networks and services – for example, 4G wireless networks and fibre transmission lines. And many governments feel that current investment levels are insufficient.Of course, these governments need to acknowledge that broadband networks are very expensive, particularly if deployed nationwide. Moreover, construction risks can be high and returns on investment are uncertain. So, governments may need to be creative and innovative to find ways to encourage operator investment and reduce the risks that operators face in deploying widespread broadband networks and affordable services.Governments have tried to address these challenges in several ways. Some have chosen to build broadband networks themselves. Government-built access networks include NBN Co. in Australia and QNBN in Qatar, while backhaul/backbone networks have been constructed in rural areas of India, Argentina and Brazil. But building a nationwide broadband network is beyond the reach of many governments, particularly in the access or \"last mile\" segment. Backhaul and backbone networks are potentially more affordable – for example, the government of South Africa, a middle income country, has invested in backhaul/backbone through Infraco. Other governments have chosen to incentivize a single operator to deploy the network, usually with a mandate to provide open access. Examples include the Malaysian government’s arrangement for Telekom Malaysia to roll out a high-speed, broadband network and the agreement between the New Zealand government and Chorus to roll out a fibre-to-the home network.This chapter considers whether governments should try an alternative approach: encouraging or providing incentives for network sharing (the term commonly used in the mobile sector) or co-investment (the term commonly used in the fixed sector). This approach enlists multiple operators – or even the government itself – as partners in solving the \"further and faster\" challenge of broadband deployment.2.2 Advantages to governments of network sharing and co-investment Governments are likely to view network sharing and co-investment initiatives positively, particularly in areas where there is limited scope for competition among multiple networks. In parts of many countries, there is only limited potential for network-based competition in fixed access and backhaul/backbone market segments beyond the main trunk routes. There is far greater latitude for infrastructure-based competition, however, in the mobile sector. Even then, it may make sense to build only a single mobile network in higher cost, low-ARPU (\"Average Revenue Per User\") regions.This chapter differentiates network sharing from a situation in which a single network operator deploys a fixed or mobile network and then is required to provide open access to third parties. Although open access technically involves a sharing of infrastructure, it is not the same business relationship as a joint venture or other arrangement among multiple operators to deploy a new network.Infrastructure sharing creates a new and different market dynamic. It can change market structures. Trends in Telecommunication Reform 2016 55