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  • Introduction
  • Passive Infrastructure Sharing Basics
  • Passive to Active Sharing
  • TRAI's Role and Recommendations
  • Impact and Benefits
 
Progressive Sharing of Indian Telecom Infrastructure

The Indian government has progressively liberalized telecom infrastructure sharing, moving from passive to active sharing, to optimize resource utilization and reduce costs for service providers. As reported by the Economic Times, this evolution began with sharing passive elements like towers and has expanded to include active infrastructure such as radio access networks, potentially leading to significant cost savings and improved network efficiency across the country.

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Telecom infrastructure sharing may spur gear sharing too, experts say
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Consultation Paper on Telecommunication Infrastructure Sharing ...
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[PDF] Recommendations on 'Telecommunication Infrastructure Sharing ...
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Passive and Active Infrastructure Sharing
Passive Infrastructure Sharing Basics

Passive infrastructure sharing in telecommunications was introduced as a cost-effective approach to expand network coverage and reduce capital expenditure for service providers. This form of sharing involves non-electronic elements such as towers, poles, ducts, and premises1. The Telecom Regulatory Authority of India (TRAI) has been actively promoting passive infrastructure sharing among telecom service licensees2. According to TRAI, passive sharing allows operators to share civil engineering elements of telecommunication networks, which can lead to significant cost savings3. This approach is particularly beneficial in developing countries like India, as it enables faster roll-out of services, avoids infrastructure duplication, and helps direct investments towards underserved areas4. The introduction of passive sharing has paved the way for more advanced forms of infrastructure sharing in the Indian telecom sector.

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Passive to Active Sharing

Initially focused on passive elements like buildings, towers, and dark fibers, infrastructure sharing in India has evolved to include active components. The Department of Telecommunications (DoT) allowed active infrastructure sharing, including antennas, feeder cables, Node B, RAN, and transmission systems, in February 20161. This progression aims to enhance resource utilization and reduce costs for telecom service providers. However, the adoption of active infrastructure sharing has been slow, partly due to the government not allowing payments between TSPs for sharing as a pass-through expense2. To facilitate wider adoption, industry experts suggest allowing pass-through for payments related to active infrastructure sharing and permitting the sharing of core network elements2.

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TRAI's Role and Recommendations

The Telecom Regulatory Authority of India (TRAI) has played a pivotal role in promoting both passive and active infrastructure sharing. TRAI has recommended creating a separate category under the unified license for Digital Connectivity Infrastructure Provider (DCIP) authorization, which would allow sharing of both active and passive digital connectivity infrastructure without additional license fees1. Key proposals include:

  • Allowing sharing of all telecom infrastructure types, including core network elements, under mutual agreements

  • Proposing inter-band spectrum sharing between service providers within a licensed service area

  • Suggesting leasing of up to 50% of spectrum holdings acquired through auction or trading, subject to a non-refundable sharing fee

  • Emphasizing the need to maintain at least two independent core networks for any telecom service when sharing core network elements2

These recommendations aim to enhance resource utilization, reduce costs, and improve network efficiency across India's telecom sector.

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Impact and Benefits

Liberalization of telecom infrastructure sharing is expected to yield substantial benefits for the Indian telecom sector. Active infrastructure sharing could lead to 33-35% savings in capital expenditure and 25-33% in operating expenses, significantly reducing costs for operators1. This approach has already shown promising results, as demonstrated by the shared RAN deployment by RailTel and CloudExtel at nine railway stations in Mumbai, which brought 50-60% savings for Bharti Airtel and Vodafone Idea while increasing download speeds by 10-15 times1. Additionally, the initiative aims to improve connectivity in remote and underserved areas by promoting the sharing of infrastructure laid under universal service obligation fund (USOF) projects, potentially bridging the digital divide across the country2.

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