The Urge to Merge: When Cellular Service Providers Pool Capacity

Abstract: As cellular networks are turning into a platform for ubiquitous data access, cellular operators are facing a severe data capacity crisis due to the exponential growth of traffic generated by mobile users. In this work, we investigate the benefits of sharing infrastructure and spectrum among two cellular operators. Specifically, we provide a multi-cell analytical model using stochastic geometry to identify the performance gain under different sharing strategies, which gives tractable and accurate results. To validate the performance using a realistic setting, we conduct extensive simulations for a multi-cell OFDMA system using real base station locations. Both analytical and simulation results show that even a simple cooperation strategy between two similar operators, where they share spectrum and base stations, roughly quadruples capacity as compared to the capacity of a single operator. This is equivalent to doubling the capacity per customer, providing a strong incentive for operators to cooperate, if not actually merge.