There can be two types of telecoms networks:
- Centralised networks
- De-centralised networks
In a Centralised network structure a single global entity (say the head office of the group) assumes the commercial risk of operating the global network.
In a De-centralised network, Local Business Units (LBUs) assume the commercial risk of operating their part of the global network.
The main commercial network that assumes the risks is entitled to the major part of overall network profits but also bears the major part of network losses.
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