ITU advocates infrastructure sharing

Infrastructure sharing will serve the global ICT sector well, especially in the face of the current economic downturn, according to a report by the International Telecommunication Union (ITU) released last week.

The ninth edition of Trends in Telecommunication Reform, with the theme "Six Degrees of Sharing," encapsulates new market and regulatory strategies that seek to optimize investment in broadband networks and ICT equipment and services.

These strategies include the sharing of civil engineering costs in deploying networks and the promotion of open access to network support infrastructure, essential facilities, radio-frequency spectrum and end-user devices.

"At its best, an approach based on the Six Degrees of Sharing will lower market-entry barriers and reduce and share network build-out and maintenance costs for investment in ICT networks and services. The idea is to move toward a second wave of sector reform in developing countries," the report states.

The most important reason for sharing infrastructure, according to the ITU, is the potential to lower the cost of deploying broadband networks to achieve widespread and affordable access to ICT.

The union does recognize two broad issues viewed as stumbling blocks to the speedy roll-out of national telecommunication infrastructure: opening up access to "bottleneck" or "essential" facilities (where a single dominant infrastructure operator provides or leases facilities) and promoting market investment in deploying high-capacity infrastructure to unserved or underserved areas.

However, the report maintains that network-sharing agreements will help operators avoid costs associated with building or upgrading redundant network sites, while providing them with additional revenue streams from leasing access. Such agreements will also allow operators to combine rent, maintenance and transmission costs to achieve considerable savings.

"Sharing strategies are increasingly necessary to ensure that operators can deploy their networks at low cost while guaranteeing that consumers have access to affordable services," said Sami Al Basheer, director of the ITU's Telecommunication Development Bureau. "Now more than ever, sharing strategies make sense as operators are forced to reduce the costs of network deployment as they compete for scarce investment funds. This is a forward-looking perspective in light of the current financial and economic uncertainty."

In addition to the cost-saving benefits, the report states that network-sharing agreements may also bring about substantial environmental benefits by reducing the number of network sites and improving the landscape.