Scheme to share telecom infrastructure to be finalised

Tue, May 31, 2011 12:00 AM on Others, Others,
KATHMANDU, MAY 31 -
The government plans to finalise a modality for sharing telecom infrastructure and start three pilot projects, one each in the mountains, hills and the Tarai, under this scheme in the next fiscal year.

A study on infrastructure sharing done by Civil Informatics and Solution in association with Gate-In Services has recommended three methods to the Nepal Telecommunications Authority—share infrastructure among existing operators, introduce an independent third-party infrastructure service provider or have operators invest jointly in infrastructure for sharing purposes. According to the authority, the study report will be finalised within a few weeks with a concrete action plan and the best modality.

For the pilot project, the consultants have recommended Siraha, Rautahat and Kanchanpur in the Tarai; Gorkha, Solukhumbu and Sindhupalchok in the mountains, and Gulmi, Kavre and Okhaldhunga in the hills based on population, penetration rate and economic potential. “We will evaluate all nine the districts and select one district each in the mountains, hills and the Tarai to start pilot projects to expand access to telecom service,” said Kabindra Shrestha, deputy director of the authority. He added that the report would also help develop guidelines for infrastructure sharing in the country.

The main objective of the pilot projects is to give a basic idea about infrastructure sharing in a phase-wise manner before a full-fledged implementation. The projects also target for a faster roll out of the network, particularly in rural areas, where there is no alternative to wireless service and operators are reluctant to go citing less return, according to the authority.

Six Nepali telecom operators who are being forced to expand their network by setting up their own separate infrastructure have long been urging the government to come up with guidelines for sharing infrastructure to develop the telecom sector in a cost effective way. The report said the sharing of telecom infrastructure would save operators’ investment by 40-50 percent by eliminating duplication of investment to reach same locality.

Kiran Raj Mishra, director of Civil Informatics and Solution, said that they would submit the final report to the authority within two weeks. “Our study has shown that of the three modalities, establishing an independent infrastructure service provider would be the best one for Nepal,” he added.

Six telecom service operators—Nepal Telecom, Ncell, United Telecom, Smart Telecom, Nepal Satellite and STM Telecom—are building base transcribers stations (BTS) and other necessary infrastructure on their own. There are an estimated 3,000 BTS across the country against the need of some 10,000 to provide mobile telecom services to the entire population.

“Sharing of infrastructure will bring down the investment of operators and tariffs will also go down,” said Shrestha. He said the provision would also help operators reach rural areas with less investment.

Source: Kantipur