Build or merge: Locational decisions in mobile access networks

Mergers between mobile network operators involve merging their respective networks. Though this may represent a chance to optimize the network structure, merging may not represent the cost-optimal solution. In this paper, we compare two different evolution paths, where the networks to be merged are separately upgraded to cover the whole traffic demand or a single network is optimized as the result of the merger (Build vs Merge). Our preliminary analyses show that the Merge approach may lead to 50% higher costs, due in particular to the high costs borne to switch off redundant access points. Any Build vs Merge decision should therefore consider the sunk costs due to the inherited networks, as well as the possible benefits associated to a merger.