Given the significant cost of building telecom infrastructure to serve a single market, telecom providers have to pick and choose where they build their own technology, and where they’re content to lease the use of infrastructure built and maintained by other providers—including their competitors.
In telecom, leasing of infrastructure to enable local network access is known as carrier aggregation, and it’s an important component of the business models for both carriers and solution providers.
Solution providers, for example, can use carrier aggregation to build a regional or nationwide network of telecom infrastructure. From there, the provider can use suppliers to lease access on a scale ranging from local markets and regions to individual buildings. Carriers, meanwhile, rely on aggregators as a demand driver to justify expanding their coverage area, increasing their market share in targeted regions.
Although carrier aggregation offers a lot of potential value to solution providers, the cost and resource investment of this process can be a significant obstacle for providers to clear without software solutions to simplify this process.