Sharing telecommunications infrastructure - Saving investment, healthy competition

Sharing and sharing telecommunications infrastructure has been implemented by domestic network operators. Recently, this issue has been mentioned by the management agency with a more drastic message: Large network operators must share infrastructure with small network operators to provide cheaper services to users.

From infrastructure competition to service competition

At the end of July, Minister of Science and Technology Nguyen Manh Hung emphasized that the trend in countries around the world is to shift from infrastructure management to digital platform management. However, domestic network operators are still "competing" to see who has a larger network and more base transceiver stations (BTS). Instead of competing for infrastructure, it is time to share infrastructure. The management agency will have a policy for large network operators to share infrastructure with small network operators, specifically VNPT and Viettel must share infrastructure with MobiFone...

Along with promoting network infrastructure sharing, the regulator will implement measures to promote service price competition, with the ultimate goal of providing services to the people.

Infrastructure sharing also helps network operators save up to 45% of capital expenditure (CAPEX) and operating expenditure (OPEX), rapidly expand coverage, reduce environmental impact and optimize equipment, thereby bringing benefits to network operators and the whole country. Especially when deploying new 5G technology with high costs in the context of the world telecommunications market tending to be saturated, infrastructure sharing is the optimal solution for network operators.

Illustration photo.

Talking to reporters of Hanoi Moi Newspaper, Director of the Telecommunications Department Nguyen Thanh Chung said that the Department always identifies the sharing of telecommunications infrastructure as one of the important solutions to optimize resources for infrastructure development, ensure urban aesthetics and promote investment efficiency. Infrastructure sharing has also been regulated by law and in fact, between 3 enterprises (VNPT, Viettel and MobiFone ) have signed an agreement to share telecommunications infrastructure.

Currently, businesses have shared passive telecommunications infrastructure, even active telecommunications infrastructure in some low-traffic areas; shared cable lines, cable poles. The total number of BTS stations (number of pole locations, station buildings) in common use is 20,539 stations, accounting for 21.01%.

It is known that among the more than 5,000 BTS locations that VNPT shares with domestic network operators, more than 2,000 locations are shared with MobiFone. Meanwhile, in Hanoi, among the more than 12,000 BTS stations of mobile service providers, more than 4,000 locations are shared by network operators.

Choose the right sharing model

According to the Director of the Telecommunications Department, the unit is continuing to work with the departments of science and technology to guide and urge network operators to include the content of sharing and common use of infrastructure in the planning of passive telecommunications infrastructure in the locality. This clearly indicates the areas, routes, key areas, public administrative areas... that must share infrastructure, especially the sharing of mobile towers and stations.

Sharing with reporters of Hanoi Moi Newspaper, a representative of Vietnam Posts and Telecommunications Group (VNPT) said that VNPT has been a pioneer in sharing infrastructure with network operators in many different forms. Specifically, since 2001, VinaPhone has shared in the form of domestic roaming with MobiFone; shared passive infrastructure (stations, antenna towers, transmission, sewers, etc.) with MobiFone and Viettel; shared infrastructure with 2 other virtual network operators. Notably, VNPT has cooperated with MobiFone to share active 4G, 5G network infrastructure, including BTS infrastructure and mobile radio equipment.

A representative of the Military Industry - Telecommunications Group (Viettel) also said that the network operators have shared and used BTS station locations and implemented roaming in areas affected by natural disasters and floods. Depending on the needs, time, quantity, and location, the network operators will change according to their needs...

According to representatives of network operators, the selection of a model of shared cooperation and use is carried out in accordance with strategic goals, market conditions and the level of trust between network operators, commonly in 3 forms.

With bilateral cooperation, two carriers sign an agreement to share part of the infrastructure, for example, sharing BTS columns, leasing transmission lines or sharing radio equipment.

The joint venture model is that the network operators jointly contribute capital to establish a joint venture company to invest, operate and manage shared infrastructure. Or lease from a third party, which will be a neutral company that invests and manages the infrastructure, then leases it back to many network operators, while the network operators only focus on providing services. Currently, domestic network operators mainly cooperate and share according to the bilateral model.

The strong message from the state management agency shows a clear viewpoint when requiring network operators to share infrastructure to save money, focus on investing in service and application development, thereby providing low-cost services to users. Thus, users have the right to hope that in the near future, customers will be able to experience many new valuable services and utilities…/.

According to Hanoi Moi newspaper

Source: https://mst.gov.vn/chia-se-ha-tang-vien-thong-tiet-kiem-dau-tu-canh-tranh-lanh-manh-197251019183830004.htm