How Infrastructure Sharing can help the telecom sector

  • Blog Title
    Blog posted on : 16-10-2020

    How Infrastructure Sharing can help the telecom sector

    Infrastructure sharing or the ability to share active or passive infrastructure with other service providers is a good money saving measure. However, over the past few years, it’s significance has increased among the telecom providers as well. The telecom industry as a whole is now going through a tumultuous time, and with the AGR dues debacle it’s financial conditions are now more stressed than ever. Thus, it’s trying to grab any opportunity to maximize profits, without any apprehension.

    But security and assurance is still a concern. That’s why, it’s more comfortable in using a method that has been tried and tested. That’s where sharing infrastructure provides ample of opportunity.

    It’s not too late to implement the IP1 Sharing

    Infrastructure providers are the life blood of IT industries in India. Surprisingly however, they are also the most vulnerable. Hardly dealing with small ventures, the losses they suffer are usually high. Amidst the pandemic, when nearly all country went into lockdown, those losses rose to an exponential scale. Thus, in order to maintain some balance and hope for a better future, TAIPA or Telecom and Infrastructure Provider Association believes that there should be a venue to share infrastructure among the infrastructure providers.

    The elements of active infrastructure sharing are as follows:

    1. Antennas
    2. Base stations
    3. Parts of core network

    The association believes that sharing these important but non-significant active infrastructure can cut down the operating costs by half.

    What does the global community say about sharing infrastructure?

    The global consensus on the matter of sharing infrastructure is the same:
    Sharing means caring and spreading the resources to cut the operative costs.

    In simple terms, most global companies believe that sharing the infrastructure would:

    1. Reduce the hardware load on infrastructure providers.
    2. Let the Infrastructure providers divide the operative and maintenance cost.

    Current countries in which the sharing of infrastructure is active are as follows:

    1. United States of America
    2. Australia
    3. Scotland
    4. Denmark
    5. New Zealand

    Going by the results of infrastructure sharing in these countries, it’s found that there is 30 to 60% increase in cash flow when Infrastructure Providers share infrastructure.

    Current scenario

    While the demand of sharing infrastructure is deserved, why is it happening now? Well, for the past few years, telecom operators have been allowed to share infrastructure on a non-discriminatory sharing basis. Even though there is nothing wrong with that, the current infrastructure sharing capabilities are limited to:

    1. Dark Fibers
    2. Towers
    3. Duct Space
    4. Right of Way

    The problem with this limitation is that these resources only passive. Active sharing involves sharing on electronic resources which for the infrastructure providers, is far more beneficial.

    Conclusion

    Sharing infrastructure is not limited to OSPs anymore. If you’re an infrastructure provider, you can choose to share your resources with another to reduce operating costs and increase your profitability. However, this prospect is still new and it’s still being worked on. Stay updated for more sharing infrastructure updates with Registrationwala.