In a major development, the department of telecommunications (DoT) today allowed telecom service providers to share active infrastructure such as antenna, feeder cables, transmission networks and radio systems. However, the companies will not be allowed to share Spectrum. Sharing of active infrastructure will help new telecom operators that have not yet set up infrastructure for telecom services as it will bring down capital expenditure in setting up the projects. This will make their operations viable in view of intense competition. This will also help in lowering tariffs.“We believe this is yet another positive step by the government to improve the penetration of telecom services, particularly in rural areas. It will also provide the industry an opportunity to bring down its operating costs and hasten network roll-outs. Above all the customer stands to benefit the most in terms of better quality and enhanced affordability,” said Bharti Airtel president and chief executive officer Manoj Kohli.Issuing the new guidelines, DoT said that sharing of active infrastructure among service providers based on mutual agreements entered among them is permitted. “Active infrastructure sharing would be limited to antenna, feeder cable, Node B, Radio Access Network (RAN) and transmission systems only. Sharing of the allocated spectrum will not be permitted,” said DoT in a statement. The licensing conditions of UASL/ CMSP will be suitably amended wherever necessary to permit such sharing. Earlier, only passive sharing of infrastructure was allowed by DoT. Passive infrastructure includes telecom towers, shelters and repeaters.“The guidelines are aimed at reducing the input costs of telecom access providers, which the telecom ministry hopes would facilitate reduced tariff and increased tele-density in rural areas,” said DoT. Passive infrastructure may be shared in accordance with the existing provisions of licences for base stations and unified access services. For giving financial incentives to infrastructure sharing in urban areas, state governments will be requested to charge an amount for setting up of the shared tower, irrespective of the number of service providers sharing it, that is at par with an unshared tower.For giving financial incentives for infrastructure sharing in rural areas, all eligible service providers/ category-I infrastructure providers will be allowed to participate in the forthcoming scheme of Universal Service Obligation Fund on infrastructure sharing, irrespective of whether they were beneficiaries in the first phase of the scheme within that particular area.To encourage the concept of infrastructure sharing in rural and remote areas, no subsidy will be paid if the newly erected tower is not shared.
