Virtualised and Open RAN Role in Overhaul of Mobile Network Sharing Regulation in Europe for 5G Rollout

There is an investment gap to reach EU Digital Decade 2030 connectivity targets that require from operators to provide full fixed and mobile broadband coverage. The reason is the lack of economies of scale, therefore return on investment often lags behind cost of capital in fragmented European national markets. Operators argue for market consolidation in form of horizontal merger, or at least market cooperation, like mobile network sharing. Horizontal production agreement, like network sharing is the second best resolution for scale improvement, however regulators also reluctant to approve urban full (active and passive) radio access network (RAN) sharing. Regulators insist on parallel infrastructure-based competition instead of service-based competition on the same infrastructure. Virtualisation and open RAN technology enables mobile 5G transformation from closed to open market organisations, where multivendor upstream market competition strengthen operator downstream and end-user retail market competitions. The research question focused on how virtual and open RAN with open market multivendor concept could mitigate regulatory anticompetitive concerns of network sharing in high density urban areas at end-user mobile services downstream market competition. The research methodology built on qualitative techniques. Exploratory analysis covers relevant academic, research institute and consultancy papers. Secondary market insight data used for market development analysis. The main finding is that, virtualised and open RAN intensifies competition, differentiation and innovation at vendor upstream market, which has similar spillover effect to operator downstream and end-user retail markets. Network function virtualisation and software-based competition enables higher economies of scale via network sharing at least in the physical hardware infrastructure segment, not only in passive, but also for active assets. The novelty of the paper to focus on infrastructure-based competition reassessment via change of infrastructure definition. Regulators reluctant for urban active mobile network sharing approval, but virtual and open RAN bring a resolution and call for new regulatory guidance on mobile network sharing, helping both operators, customers and social welfare increase