
By contrast, many European countries lease out space on their airwaves for eight- to 15-year terms. The perpetual licenses in the U.S. gives phone companies the incentive to invest. The large, contiguous slices of spectrum the U.S. sold in its latest auctions make it easy to build fast networks.
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Catherine Haslam, wholesale analyst at Ovum, says operators need to change their attitudes towards mobile wholesale and enhance their wholesale portfolios to become enablers of more advanced and differentiated MVNOs.
“The limitations of many mobile operators’ wholesale services means that they are competing only on price and perpetuating a race to the bottom amongst budget MVNOs. If mobile operators enable more niche and value-added MVNOs, they can build a more effective wholesale revenue stream. Many are currently leaving wholesale revenues on the table by failing to see it as a mainstream revenue stream,” Haslam added.