CADE releases study on RAN Sharing in telecommunications sector

On 11 February, the Administrative Council for Economic Defense (CADE) released the 23rd volume of the Cadernos do Cade series, starting a special edition of the collection. Unlike previous editions, traditionally focused on systematising the agency's case law in specific markets, the new volume aims to select and analyse a main antitrust subject.

The first edition provides an in-depth analysis of RAN Sharing operations in the telecommunications sector, focusing on the competitive effects arising from network sharing agreements among mobile operators.

The study is based on the recent consolidation of the telecommunications sector, as well as the growing competitive pressure faced by mobile network operators, driven by increased demand for data, and reduced average revenue per user, associated with the expansion of over-the-top (OTT) services, such as messaging, video, and streaming platforms.

In this context, operators have sought alternatives to reduce investment costs and speed up the implementation of their networks, including mergers, joint ventures, as well as infrastructure sharing agreements.

The study highlights that infrastructure sharing agreements may range from passive sharing, such as the joint use of sites and towers, to active sharing, which involves radio access network (RAN), as well as sharing the core network itself in certain arrangements.

Contracts are structured either through the establishment of joint ventures or specific network sharing contractual instruments, such as memoranda of understanding, infrastructure sharing agreements, or RAN sharing agreements.

In addition, the document emphasises that commercial decisions, such as pricing and market strategies, remain the sole responsibility of each operator.

However, the competitive effects of RAN Sharing agreements depend on the specific characteristics of each contract, and the market context in which they are signed, reinforcing the need for careful assessment of these instruments.

Its main objective is to analyse how RAN Sharing agreements have affected competition in the Brazilian telecommunications sector, identifying the main types of network sharing in the country, the relevant regulatory aspects, as well as the potential anticompetitive effects among the agents involved, considering the agreements notified and cleared by CADE.

The new volume is divided into six sections, including introduction, review of theory and regulations, analysis of international and national experiences, assessment of market structure, examination of the competitive effects of network sharing agreements, and final remarks.

With the publication, CADE expands its production of sectoral studies aimed at promoting competition and sharing technical knowledge, thereby contributing to a qualified debate on relevant topics for antitrust policy enforcement in Brazil.

Access the full study here