Telecom Infrastructure Sharing May Lead to Equipment Sharing, Experts Say

The telecom regulator’s new proposal to allow telecom infrastructure sharing without an extra license fee might encourage operators to share more active equipment like antennas, base stations, and backhaul networks, according to experts. Currently, telecom companies in India share passive infrastructure such as buildings, towers, and fiber optics. However, sharing active equipment is rare due to the high costs involved.

Prashant Singhal from EY Global explains that sharing active equipment would double the license fee for both operators, making it less appealing despite the potential cost savings.

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The Telecom Regulatory Authority of India (Trai) recently suggested a new category under the unified license called Digital Connectivity Infrastructure Provider (DCIP). This would allow DCIP holders to create and share both active and passive infrastructure without paying a license fee.

Trai’s recommendations could lead to significant savings. According to BEREC, a group of European telecom regulators, sharing active infrastructure could save 33-35% in capital expenses and 25-33% in operating costs, compared to the 16-35% savings from passive infrastructure sharing.

In India, a shared Radio Access Network (RAN) project at nine Mumbai railway stations led to 50-60% savings for Bharti Airtel and Vodafone Idea, and significantly improved download speeds and customer experience, according to CloudExtel’s CEO, Kunal Bajaj.

With data usage rising and the arrival of 5G, the need for a denser network of micro cells is increasing. Existing infrastructure can’t keep up with 5G demands, which require more cells than 4G.

However, the success of this initiative depends on practical factors and how different operators’ networks have developed. For example, Vodafone Idea relies heavily on 2G, while Airtel and Jio have different 5G setups, says Singhal.