pool their assets and outsource the management and operation of their shared network to a third-party manager. This can be an attractive arrangement, as it removes aspects of trust issues that can sometimes complicate joint ventures.More commonly, arrangements for the management and operation of RAN, core and transmission networks are entered into with individual operators (about 25 per cent of operators have entered into these arrangements). Equipment vendors such as Alcatel-Lucent, Ericsson, Fujitsu, NEC, Nokia, Huawei and KT Corp provide various types of third-party outsourcing products that may be suitable in a network-sharing environment.The involvement of a third party will reduce the savings available to the sharing parties and may result in SLA-driven control of that third party. Outsourcing to a third party also involves loss of competence within the operator’s organization, which can have long-term implications.2.8 Future applications of sharing and co-investment This section explores some of the forward-looking applications of the network-sharing and co-investment model, such as for \"smart cities\" or dynamic spectrum sharing.2.8.1 Smart city environments Extensive and ubiquitous high-speed connectivity is a key enabler for the success of so-called smart cities. Telecommunication operators have the opportunity to provide connectivity solutions that will go beyond fixed and mobile broadband. They will include proximity connectivity using WiFi, NFC, Bluetooth, RFID and the like. There will also be a need for other progressive connectivity solutions.Governments, operators, utilities and private entities will need to share and provide access to key infrastructure needed for the proliferation of smart city solutions, such as access to buildings, cabinets and light poles. Sensors and other smart components may need to be installed in strategic locations that are owned by multiple parties, and it may make sense to make those sensors and components available for use by many players in the smart city ecosystem.It won’t just be access to infrastructure that will need to be shared in smart cities. Data sharing and access will also play critical roles, and clear rules and even regulatory intervention may be needed. For example, in the context of a smart emergency services solution, energy utilities may need to share smart-grid data with emergency services agencies so that they can respond immediately – or even pre-emptively – to power outages or power-related emergencies on the basis of that data.2.8.2 Virtualization of core network infrastructure Telecommunication operators can be expected to increasingly use cloud-based infrastructure for their data centre, platform or application requirements. This is a form of sharing, as logical separation through virtualization will make it possible for core network infrastructure and functions to sit on physical infrastructure that is used by other parties, including other operators.2.8.3 Dynamic spectrum sharing Spectrum sharing is likely to feature increasingly in RAN and optical fibres (dynamic wavelength allocation). Traditionally, mobile network operators have been reluctant to consider spectrum pooling, or sharing of spectrum between operators, because they seek to maintain maximum flexibility to manage their networks. Also, frequency allocations are often not equal. India, for example, does permit some RAN spectrum sharing, but it is not permitted in many countries.Up until now – and for the foreseeable future, realistically – governments allocate spectrum mainly on a dedicated basis. This has allowed operators to use higher-power equipment, with resulting wider coverage, while limiting interference. The exception has been unlicensed spectrum, which used by (among other things) Wi-Fi networks.Dynamic spectrum access (DSA) technologies allow devices to use spectrum where it is not being used in a particular geographic area, or at a particular Trends in Telecommunication Reform 2016 65 Chapter 2