| Telecommunications companies have taken a number | | | | -Passive sharing is what the name suggests; it allows |
| of cost-cutting measures to alleviate the massive | | | | for telecom companies to share passive or |
| effects of the ongoing global financial crisis, including | | | | non-electronic infrastructure (non-electronic |
| cutting down their workforce. With investment | | | | infrastructure accounts for the larger chunk of rollout |
| deficiencies piling up, temporary solutions have been | | | | costs). In cell sites, "passive" equipment includes the |
| taken. And while temporary solutions are necessary | | | | tower itself, electrical supply, air-conditioning equipment, |
| for companies to weather the storm, long term | | | | and technical premises, among other things. Thus far, |
| solutions have begun to surface like outsourcing | | | | passive infrastructure sharing is the most commonly |
| network operations, investing in network business | | | | used option by telecom companies around the world. |
| information, and infrastructure sharing. | | | | -Active sharing involves the shared use of electronic |
| These days, telecom companies cannot afford to lose | | | | infrastructure in a cell site, including the base tower |
| money as the global economic climate is still on | | | | station, switches, antennas, transmission and signal |
| unsteady footing, and ironically, one way for telecom | | | | processing transceivers, and microwave radio |
| companies to generate more revenue is to broaden | | | | equipment. |
| their reach by building new cell sites in areas with little | | | | -Spectrum-sharing is basically a lease agreement |
| or no service at all. So how do companies go around | | | | between two companies. With spectrum-sharing, a |
| the fact that they need to shell out money to broaden | | | | company can lease a part of another company's |
| their reach? | | | | spectrum which enables both companies to provide |
| A recent report by management advisory and | | | | service to the same customer. This type of |
| investment firm Delta Partners emphasized the need | | | | infrastructure sharing is utilized in some parts of the |
| to utilize infrastructure sharing strategies. The said | | | | world; it promotes better service at competitive prices |
| report was geared toward the Middle East and North | | | | and benefits customers. |
| Africa (MENA) region and it underlined a projected $8 | | | | There are other types of telecom infrastructure |
| billion in savings over a period of 5 years for telecom | | | | sharing types, each catering to a specific need. These |
| companies. | | | | include site sharing, mast sharing, antenna sharing, RNC |
| If the report's estimated savings are to be believed, | | | | (Radio Network Controller) sharing, backbone sharing |
| then infrastructure sharing could be a good solution to | | | | (switch and router sharing), geographical splitting, |
| counter investment deficiency. Telecom infrastructure | | | | frequency sharing, and base station sharing. With |
| sharing, as the name suggests, is a cost effective | | | | these, telecom companies have a lot of options |
| solution for telecoms to expand their reach to other | | | | available to them. |
| areas. | | | | Today's economic climate calls for companies to run |
| Rollout costs for new sites are far from inexpensive, | | | | like well-oiled cost efficient machines; companies can |
| and they eat up a large chunk of telecom companies' | | | | benefit from even the smallest savings. Measures |
| budgets. A telecom company looking to broaden its | | | | such as telecom infrastructure sharing will provide |
| reach without spending too much on erecting new | | | | companies with a means to save on rollout costs and |
| towers can find a cost effective solution in sharing | | | | in the long run, the said savings can be used to counter |
| another company's assets. | | | | shrinking investments. It is a solution that might prove |
| There are several infrastructure sharing options that | | | | practical, especially for companies looking to expand. |
| companies can take, limited only by the telecom | | | | Infrastructure sharing opens a number of possibilities |
| regulatory and legislation in different countries. Also, the | | | | for telcos; savings translate to more capital to reinvest |
| options of sharing depend on what electronic and | | | | on building new sites, save companies from slimming |
| non-electronic infrastructure companies are willing to | | | | down the workforce, and stay competitive, among |
| share or lease. | | | | others. The customers benefit too, as the healthy |
| Here are some of the possible infrastructure sharing | | | | competition promotes better quality of service and |
| options companies today can tap into: | | | | lower costs. |