Telecom regulator readies directive for infrastructure sharing

KATHMANDU:

Telecom companies from now on will be required to build infrastructure such as mobile towers and optical fibre in a way that they could be shared among at least three companies. This is one of the provisions included in the Infrastructure Sharing Guideline approved by Nepal Telecommunications Authority (NTA).

The directive is slated to come into effect as soon as the Telecommunications Infrastructure Promotion Committee (TIPC) under the Ministry of Information and Communications endorses it. With focus on slashing investment in telecom infrastructure and avoiding

duplication in building infrastructure to take services by operators in the same area, the telecom regulator last week passed the much pending guideline and sought a go-ahead from the committee.

As per the sharing rules, it will be mandatory for NTA licencees to jointly use passive infrastructure including tower, optical fibre, land, building, battery and diesel generators. Sharing of infrastructure is expected to cut capital expenditure of telecom companies in telecommunication equipment imports and operational costs of towers. It has also talked of issuing a licence to a firm as ‘infrastructure sharing company’, which will be allowed to build telecom infrastructure and lease out the facility to other companies.

Any operator wishing to use another company’s infrastructure should first reach a mutual agreement fixing a reasonable sharing fee and apply to NTA for permission, as per NTA.

“If any company refuses to share its infrastructure, the firm seeking the service can appeal to NTA and the regulator’s decision will be final,” said Achyuta Nanda Mishra, assistant spokesperson of NTA. Due to lack of guideline, telecom companies so far have been investing separately to expand services in the same area.

Keeping in mind the joint use purpose, the directive also asks companies to enhance the capacity of their fibre optic cables that have already been extended. Mishra said that NTA could also devise a provision for joint use of active infrastructure like antenna, frequency, base and master station controllers.

Basically, the sharing provision will support small companies like Smart Telecom and United Telecom Ltd that have been planning to expand services nationwide under unified telecom licence, as they would be able to use huge infrastructure network of Nepal Telecom and Ncell by paying a certain amount as fee.

The sharing provision will also be a source of revenue earnings for big companies. As per NTA, it will also be compulsory for small companies that want to use another company’s infrastructure to possess 30 per cent infrastructure required for their network expansion plan.

Companies upon permission from the regulator can also invest jointly to build, operate and manage new infrastructure. To make it easy for possible sharing, companies will also be required to post information on their websites about infrastructure that can be shared and such information should be updated every month.

Some major guidelines

• Sharing of passive infrastructure — mobile towers and optical fibre cable — mandatory

• Companies must have 30 per cent infrastructure required for its network plan to be eligible to use another company’s infrastructure

• Telcos must build infrastructure that can be shared among at least three operators

• Govt to intervene if any company refuses to share infrastructure

• A firm to be issued licence as Infrastructure Sharing Company

• Encourage enhancing capacity of existing optical fibre for sharing

• Companies must update information about their infrastructure on their websites monthly

• Operators to be allowed to invest and use infrastructure jointly

• Sub-sharing of infrastructure restricted

Source: THT