Outsourcing Will Solve 3G Licence-Holders' Biggest Problems, Says Crown Castle International
Targeting the winners of the forthcoming 3G licence auctions, Crown Castle believes that a combination of outsourcing of network operation and management and site sharing of network towers and equipment, such as base stations, is the optimum solution for many of the commercial and technical challenges facing prospective 3G licence-holders.
Research by Crown Castle, in conjunction with consultants KPMG reveals that an Operator's traditional self-provided network model in the UK could cost the equivalent of around £700 million annually over the term of the licence. This amount is simply for network infrastructure, excluding the costs of the licence, content and service provision. It is projected that a combination of outsourcing the network and sharing radio transmitter sites could save a 3G licence-holder some 40% of total network costs.
Nick Davies, Development Director 3G, Crown Castle, explained: "These savings can result in a significant positive impact on the whole business proposition of 3G licencees. Additional savings of £1 billion or more would be freed up for the prospective 3G operator, with a potentially dramatic effect on their business plan, both short and long-term. This reduced cost of an outsourced network is likely to be a significant factor in the success or failure for the 3G licencee."
Crown Castle develops, deploys, owns and operates some of the most technologically advanced, outsourced and shared communications infrastructures in partnership with world-class carriers and broadcasters. While such clients share the facilities of Crown Castle's expanding infrastructure, each customer receives a tailored service subject to performance and service standards.
"Because we are independent and wholesale, we do not compete with our customers. Our sites and services are a neutral zone in which our clients do not have to compromise performance levels and enjoy a 'turnkey' service from Crown Castle. For the 3G operator, Crown Castle's services should translate into a faster time to market, faster return on investment, greater financial flexibility and more opportunity to focus on the new, complex 3G business, confident that the operational network is in safe hands. Outsourcing and site-sharing in this way also help ensure minimal planning delays and impact on the landscape," said Davies.
Crown Castle is poised to become the leading provider of wholesale infrastructure to 3G operators in the UK and has an unparalleled track record in providing advanced outsourced wireless services. Leading the transition to digital broadcasting in the UK, it won contracts in 1998 to build and run the networks of four of the six digital TV service licences awarded that year - ONdigital and the BBC.
Nick Davies concluded: "Excitement in the communications industry surrounding 3G is already high, but prospective licence-holders face some harsh realities and serious challenges turning the opportunity into a genuine, successful service business. With Crown Castle, new operators and incumbents can get off to a flying start, confident that along with our expanding network and years of experience, we will be an independent partner."
NOTES FOR EDITORS Crown Castle International Corp. is the leading supplier of independent communications infrastructure and services to the broadcast and telecommunications industries world-wide.
Created in February 1997 through the privatisation of the BBC's transmission division, Warwick-based Crown Castle acquires, develops and manages broadcast and telecommunications infrastructure, including wireless support structures such as towers and rooftops, fibre optic routes and in-building communications services world-wide.
Crown Castle currently owns and manages over 2,000 radio communication sites in the UK, serving the leading players in UK broadcast and telecommunications, including the BBC, ONdigital, Virgin Radio, Orange, BT Cellnet, One 2 One and Vodafone.
Globally, Crown Castle International brings together companies with an aggregate of over 75 years experience in broadcasting and 20 years in telecommunications. It owns, operates or manages over 10,000 sites, having built up an unrivalled network through an impressive string of acquisition deals and is the outsourcing partner of choice for the world's leading broadcasters and telecommunications operators.
For further information, please contact:
Nick Davies
Development Director 3G
Crown Castle UK Limited
Tel: +44 (0) 1926 416250
nick.davies@crowncastle.co.uk
Michael Schueppert
Director of Sales and Marketing
Crown Castle UK Limited
Tel: +44 (0) 1926 416060
michael.schueppert@crowncastle.co.uk
Press relations:
Edward Lloyd or Simon West Barrington
Lloyd International Tel: +44 (0) 1799 506187
edward.lloyd@bli.co.uk
Or visit Crown Castle International's websites: www.crowncastle.com and www.3g-thefuture.com