Tower body urges DoT to expedite implementation of TRAI recommendations on active telecom infra sharing In its recent recommendations issued during March 2020, the TRAI recommended in favor of allowing active infrastructure sharing of Telecom Access networks within the scope of the IP-1 category of registration. ETTelecom January 19, 2021, 16:04 IST

 

NEW DELHI: Tower and Infrastructure Providers Association (TAIPA), the apex representative body of Telecom Infrastructure Providers Category – I (IP-1), has written to the Department of Telecommunications to expedite the process of implementation of TRAI’s recommendations on the “Enhancement of Scope of Infrastructure Providers Category-I (IP-1) Registration”.

In its recent recommendations issued during March 2020, the TRAI recommended in favor of allowing active infrastructure sharing of Telecom Access networks within the scope of the IP-1 category of registration.

The National Digital Communications Policy (NDCP) 2018 has also envisaged the expansion of the scope of IP-1s to include active infrastructure sharing as well as passive network sharing.

In its letter addressed to telecom secretary Anshu Prakash, TAIPA cited reports by Swedish Ericsson, Booz & Company, Coleago, and McKinsey to highlight that infrastructure sharing can lead to significant cost benefits.

TAIPA said that the enhancement in the scope of IP-1 registration to include active infrastructure sharing would lead to the provision of cost-effective network infrastructure along with faster time-to-market for operators, and it would also invite investments in the sector.

“The steep fall in revenues and ballooning debt is hurting investments in telecommunication infrastructure, networks, and technologies. Telecom infrastructure creation for the rollout of new technologies viz 5G, M2M/IoT and deployment of Smart Cities, requires a huge amount of investment. Considering the present financial condition of the telecom operators, we feel that the enhanced form of infrastructure sharing i.e. Active Infrastructure Sharing by IP-1 is the only way forward for the industry,” said T.R.Dua, Director-General, Tower & Infrastructure Providers Association (TAIPA).

Ericsson predicts that the savings from infrastructure sharing will be up to 40% and cash-flow improvement will improve by up to 31%, while Booz & Company stated that infrastructure sharing can enable operators to save 30-40% of the network costs.

Coleago calculated that savings in roll-out CAPEX and O&M can reach up to 65% each with network sharing.

A McKinsey study estimated that the cost reduction will be up 40%, majorly in the rollout of small cells.

Dua added that at a time when the infrastructure providers are working tirelessly to ensure 24x7 network connectivity, the government also needs to expedite policy decision to “facilitate huge investment required in the networks.. and to foster competition”