Mobile Operators Create Cost Savings in Many Areas

Operating and capital expenses are the two major “controllable” costs for any mobile operator, which is why most of the impact of cost control efforts has to come in those areas. There is only so much a mobile operator can do about spectrum licensing fees, taxes or other costs such as content rights or roaming charges. 

Cost Contributor	Estimated Percentage of Total Costs	Key Components
Network Capex	15-25%	Spectrum: License fees, network deployment costs for acquired spectrum. Infrastructure: Cell towers, base stations, fiber optic cables.
Operating Expenses (Opex)	45-60%	Network Opex: Maintenance, energy costs, site leases. Commercial Opex: Marketing, customer service, billing, IT systems.
Content & Licensing Costs	10-15%	Roaming agreements, streaming content rights, mobile VAS (value-added services).
Regulatory Fees & Taxes	5-10%	Spectrum fees, government licenses, corporate taxes.

Nearly every initiative aimed at cost containment, ranging from use of open source to virtualization and software-defined networks, Wi-Fi offload, infra sharing and energy efficiency are aimed at limiting or controlling opex and capex. 

But savings come in several areas. 

Cost Area	Potential Cost Reduction Range	Key Drivers
Network Optimization:	10-20%	Automation, software-defined networking (SDN), AI-driven optimization, cell site modernization.
Operational Efficiency:	5-15%	Streamlining processes, digitization, outsourcing non-core functions, shared procurement.
Spectrum Sharing & Collaboration:	5-10%	Pooling spectrum with other providers, reducing individual license costs, infrastructure sharing.
Personnel Costs:	3-8%	Reskilling workforce, automation, optimizing staffing levels, outsourcing specific tasks.
Content & Network Management:	2-5%	Targeted content delivery, caching mechanisms, optimizing network traffic, data plan differentiation.
Energy Efficiency:	1-3%	Investing in energy-efficient equipment, utilizing renewable energy sources.