This document discusses infrastructure sharing, which refers to the joint use or development of telecommunications infrastructure between operators to efficiently deliver services. It defines infrastructure sharing, outlines the strategic drivers like cost reduction, discusses benefits such as optimized resource use and reduced costs, and provides examples of successful infrastructure sharing initiatives. The document also covers considerations for infrastructure sharing and provides recommendations, emphasizing the need to carefully study technical, geographical and commercial fit based on a long term vision and partnerships built on trust.
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Joint use or development of
structures, facilities, platforms and
expertise, that all together can be
classified as resources, between
telecommunications and utility
operators and service providers for
efficient and effective service
delivery.
What does “Infrastructure Sharing” means?
Affordable Infrastructure Development
Mott MacDonald | Infrastructure Sharing
7. Affordable Infrastructure Development
What drives Infrastructure Sharing?
1
Cost reduction
and/or optimization
(both CAPEX and
OPEX) 2
Extending services
to rural and
uneconomical
areas
3
Facilitation of
market entry and
new revenue
sources
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4
Time to market and
innovation agility
Mott MacDonald | Infrastructure Sharing
18. Does it make sense?
Considerations
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Trust
Regulatory
Framework
Geographic
Fit
Technical Fit
Commercial
Fit
Alternatives
Market
Maturity
Mott MacDonald | Infrastructure Sharing
Context
Different regulatory
and competitive
environment in
each country may
impact the degree
and structure of
infrastructure
sharing.
21. In good faith
• Availability, capacity,
safety
• Transparent cost
base sharing
With due
considerations
• Through trust driven
partnerships and
collaborations
• Study technical,
geographical,
commercial and cultural
fit
Long Term
Vision
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• Keep effective
completion in mind
• With sustainable
reciprocal agreements
• Recognize overall
industry benefits
Mott MacDonald | Infrastructure Sharing
22. Intervention
Carefully study and
understand the
problem before
formulating a
solution
Infrastructure
Investment
Supply side
intervention
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Demand
Stimulation
• Restructuring
(Functional or
structural
separation)
• Co-owned infraco
• National broadband
company
• Fiscal measures
(Direct & indirect
subsidies eg.USF,
tax benefits, license
fee reliefs, etc.)
• Geographically
focused government
funded networks
(eg. Municipal,
provincial networks)
• Education for digital
literacy
• End-user subsidies
(eg. tax benefits on
devices)
• Relevant and local
content (eg. health,
education, public
service, etc.)
Market Failure
Socio-Economic Impact
Mott MacDonald | Infrastructure Sharing
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Bora Varliyagci
Head of Digital Infrastructure
E bora.varliyagci@mottmac.com
T +27 (0)11 052 2199
W mottmac.com/communications
You can reach us by phone, email
or through our website. We look
forward to talking to you.
Mott MacDonald | Infrastructure Sharing
