A recent study conducted by Nepal Telecom explores the possibilities of sharing telecommunication infrastructures by mobile operators to enhance service quality and lower investment.[break]
Kabindra Shrestha, deputy director of NTA, told Republica that there would be no need of extra investment for same infrastructure if all mobile operators agree to share tower, base transceiver station (BTS) and other equipment.
“In the report, consultants have suggested mobile operators to share tower in the first phase and other equipment like microwave link and optical fibers, among others in the later stage,” Shrestha told Republica.
Telecom infrastructure sharing means sharing of tower, BTS, microwave radio equipment, optical fiber, antenna and generator, among others.
Infrastructure sharing among mobile operators can be more effective if the operators establish a separate company to oversee the issue, the report has quoted consultants as saying.
There are six telecommunication service providers in the country and all of them have the permission to operate mobile service.
The telecom regulator conducted the study to expand mobile services to rural areas and to prevent separate investment of different companies for the same infrastructure.
Meanwhile, two big mobile service providers -- Ncell and Nepal Telecom -- have hinted that they are ready to embrace infrastructure sharing. Talking to Republica, Pasi Koistinen, CEO of Ncell, said the concept of infrastructure sharing was a positive move. “But what is more important is the necessary exercise for the implementation,” Koistinen said.
“Ncell and Nepal Telecom are bigger than other service providers in terms of business volume, and it is important to clarify the issues like distribution of investment and the stakes of the proposed company that they can hold.”
Surendra Prasad Thike, spokesperson of Nepal Telecom, echoed Koistinen and said a regulatory mechanism was necessary to ensure that all the operators are in a win-win situation. “Infrastructure sharing will be beneficial for customers as well, because tariff will come down as operators will have to make less investment,” he added. He also said infrastructure sharing will add new dimensions to the telecommunication sector.
Mobile operators in Sri Lanka and India have already embraced the infrastructure sharing concept.
NTA officials told Republica that the finding will soon be uploaded in the official webpage of NTA to seek suggestions. “The implementation process will begin after collecting suggestions,” Shrestha added.
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