Passive Infra Sharing in Telecom Industry - An overview

Abstract

It is beneficial for mobile operators to share the infrastructure of tower companies rather than expanding their own network as it will result in faster and cheaper rollout of networks as well the improved tenancy ratio. During initial years the telecom operators were involved in the installation, maintenance and operation of mobile network resulting in huge capital investment&Operational cost. The intense competition between various players in the telecom space forced the operators to reduce the cost of operations by outsourcing the non -core activities including network related operations. In this process, operators segregated their tower assets into separate tower company and focused on core activities of providing the quality of service and enhancing customer relationship.