New policy: DoT may allow infrastructure sharing

The government is likely to allow active infrastructure sharing in the telecom sector in the new telecom policy, resulting in lower cost for setting up network and less time for rolling out services.

Till now the telecom companies can share only passive infrastructure such as towers. In active infrastructure the players would be able to share antenna and mobile exchanges among others.

"Newer technologies are developing where certain elements of the network infrastructure can be shared to bring down the cost and decrease the roll-out time," Chandra Prakash, member (Technology), department of telecommunication, said in his address to industry players at TAIPA event.

He added that DoT is considering allowing active infrastructure sharing under new licensing regime.

Telecom infrastructure providers come under Infrastructure Provider-I category identified by the Telecom Regulatory Authority of India in 2000.

At present, IP-I, is not permitted to set up or install Radio Access Network (part of active infrastructure) of its own, as it not assigned spectrum and accordingly not granted the Wireless Telegraphy licence.

Trai has proposed to bring IP-I players under licence regime and permit them to provide both passive and active infrastructure, independent of the service providers.

"Sharing of infrastructure will lead to reduced transaction costs and quicker roll-out," Prakash said.

Speaking on the occasion, BSNL chairman and managing director R K Upadhyay said that infrastructure providers should be allowed to share active infrastructure.

"This will be a win-win situation for IPs as well as telecom operators. On one hand IPs will be able to increase their tenancy ratio there by increase their profitability on the other hand telecom operators will reap benefit of lower capex," Upadhyay said.

However, Tower and Infrastructure Provider Association has opposed the proposal of bringing IP-I players under licensing regime.