2.3.2 Network sharing in the fixed sector Co-investment in fixed markets occurs relatively infrequently compared to mobile network sharing. It is especially rare to see co-investment agreements for fixed infrastructure without some pressure or incentive by a government. The other main example of fixed-service co-investment has been when non-incumbent competitors have agreed to co-invest in a new network without involving the incumbent. These agreements, however, face the risk that the incumbent will cherry-pick prime customers and otherwise compete aggressively wherever the Trends in Telecommunication Reform 2016 59 Chapter 2 Figure 2.1: A cost-savings comparison of different types of sharing This image has no alternative textThis image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative textThis image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative textThis image has no alternative textThis image has no alternative textThis image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative textThis image has no alternative textThis image has no alternative text This image has no alternative text This image has no alternative text This image has no alternative text Source: GSM Association and Vodafone Group Box 2.3: Fixed Network Co-Investment Examples Netherlands: In an example of a commercially driven co-investment arrangement, the Dutch incumbent operator KPN co-invested with Reggefiber to deploy FTTH connectivity to 2 million homes. The initial arrangement was for KPN to pay 41 per cent, with Reggefiber funding 59 per cent of the deployment cost7. But in November 2014, KPN acquired 100 per cent of Reggefiber, effectively ending the co-investment arrangement8.Singapore: Singapore’s OpenNet is an example of how a government incentive was used to effectively require a co-investment strategy. Singapore’s policy objective was to introduce a structurally separate entity at the passive layer, so it forbade the fixed incumbent from having a controlling stake in that entity9. As a post-script, the co-investment arrangements were unwound in 2014, when all of the OpenNet shareholders, including the incumbent, sold their interests to NetLink Trust, which was set up with the incumbent operator as the beneficiary10. Portugal: Vodafone Portugal and Optimus entered into a long-term cooperation agreement calling for each operator to build next-generation access networks independently (mainly in the Lisbon and Porto areas). The agreement spelled out conditions granting each operator access to the other’s networks11.France: In France, the regulator has mandated network sharing for in-building wiring. This has led operators to grant a passive access to other operators at the concentration point12. Under the French model, one operator signs a contract with the building owner and becomes the main operator within the building. This operator is in charge of constructing and maintaining the networks and offering passive access to the other operators, either through a dedicated or shared fibre line. Access is granted through a long-term (24- or 30-year) cooperation agreement.