unlocking broadband for all: introduction to infrastructure sharing the key opportunities and...
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Unlocking Broadband for All:
Introduction to Infrastructure SharingThe Key Opportunities and Benefits
SADC-CRASA Stakeholder Validation Workshop May 20-21 2015
Capital 20 West, Sandton, Johannesburg, South AfricaAssociation for Progressive Communications (APC)
Key Network Infrastructure Priorities (1)
Optic fibre links between neighboring countries – at least two physically independent links are required for reliability and competitive pricing
International submarine cable landings – access to at least two or more independent submarine cable landings are required for reliability and low pricing
Competitively priced and reliable national backbones (often also provides cross-border links)
Key Network Infrastructure Priorities (2)
Middle-mile fibre infrastructure reaching smaller population centres
High capacity links from wireless base stations to backhaul (increasingly fibre)
Affordable choices in fixed and mobile retail broadband providers for end-users
Efficient low-cost interconnection, including between IP networks, and between IP and public voice networks (mobile and fixed) I.e: IXPs, DIDs, voice network interconnection
Key Network Infrastructure Challenges
Expensive international, national and last-mile access & limited coverage of networks due to:
Duplication of infrastructure => high overall finance needs, slower time to market
Low levels of competition Low ICT skills and awareness of new technology
options Low income levels and economies of scale High network costs (import duties, taxes, power,
license fees) Limited financing due to low returns on
investment, high risks (perceived or real), unclear or changing policy environments
Network Infrastructure and Institutional Frameworks (1)
ISO Layers 1-4:
Lit Fibre Cables Copper cables Radios & Satellites Switches & Routers Servers & Storage Numbering and IP
addresses/ASNs Interconnection between networks
Direct Stakeholders: Government – policy
makers and regulators Telecom Operators –
fixed, mobile, satellite Internet Access Providers Data Centre Operators Exchange Points (IXPs) Content providers Civil Society & Consumer
Associations
Network Infrastructure: Passive / Linear/ Utility Infrastructure
Land & Rights of Way (ROW) Ducts and Dark Fibre Sites, Masts & Poles Radio Spectrum Satellite Orbital slots Energy, AirCon & Housing
Primary stakeholders: Governments & Regulators Land Owners Dark Fibre & Mast Operators Utility Infrastructure
Operators: Rail, Energy, Roads, Water, Waste
Various national and local authorities, and parastatals
People living/working in close proximity to facilities
Cost effective access to passive/utility infrastructure is vital to affordable broadband, but is often given less attention in policy development
Major Benefits of Infrastructure Sharing
Source: APC/Deloitte Study 2015
Reduced Opex and Capex & Release of capital assets
Lower asset duplication:
Expansion of network and coverage
Increase in take up and connectivity
Lower barriers to entry increase competition
Reduced visual and environmental impact
Economic & Social Benefits
Lower service prices
Scope & Ease of Infrastructure Sharing
• Civil engineering works of other operators
• Existing sites and masts
• Existing rail links & powerlines fibre
• Existing telecom fibre networks
• Local loop of existing operators
New construction :
• Roads, powerlines& gas, water and oil pipelines
• Building and housing estates
Easier sharing
Harder sharing
Ease of Infrastructure sharing
LAND AND BUILDINGS
• Civil works
• Rights of way
• Kerbs and in-building
OTHER SECTORS INFRASTRUCTURE
• Sewage /water systems
• Railroads
• Power grids
• Roads
• Gas and oil pipelines
TELECOM INFRASTRUCURE
• Ducts
• Poles
• Sites
• Masts
• Dark fibre
• Wavelength
• Active network elements
Scope of Infrastructure sharing
Source: APC/Deloitte Study 2015
Mast Sharing Among the most common forms of
infrastructure sharing – especially for mobile operators
High site establishment costs and environmental impact restrictions encourage may voluntary site sharing
Absence of grid power and the high capex of solar or high operational costs of diesel fueled base stations also encourages sharing
Operators may implement this through rental agreements, site/mast swaps, or by outsourcing to third party independent tower operators
Universal service funded towers are usually required to be shared
Mobile network sharing can go beyond masts
Source: Vodafone
Across a network of 10,000 sites costing about $80K/site, a two-way mast sharing agreement could save operator $365m/yr Source: Deloitte
Fibre Network SharingRetail
TelecommunicationServices
Active Services
PassiveTelecommunication
Services
Roads, buildings, etc
Wholesale Active Network
providing structured
transmission capacity
Retail service for residential and business
Dark Fibre, Power
Air Con, Tubes, Ducts, Room,
Trenches
Rights of Way
Examples Project LinkKampala
Many Govt Backbones
Parkhurst Community Fibre
Dark Fibre Africa
Most Metro Networks
Source: NSRC
Duct Sharing In fibre deployment 70-80% of the cost is in the civil works for the ducting – if this can be shared, the savings are substantial - $16m per operator saved for a 1000km of fibre shared by three operators
A variety of models: Highway authority as duct
operator Outsourced independent
private duct operator (concession)
Telco shares ducts with other operators
Rights of Way• Gaining access to rights of way
(ROW) can be highly costly and time-consuming
• Massive savings can be made by implementing dig once policies requiring operators to share civil works, and requiring all new transport or energy infrastructure to include ducts -
• Coordinating network roll-out with road construction is estimated to add only 0.9-2% to the total cost of the road (Deloitte)
• Often seen as a revenue stream by the ROW ownerImage source: Kictanet
LocalLoop
SharingFTTx Facilities
Competition
Unbundled Network Elements
Open Access
Passive infrastructure sharing requirements Making sharing a condition of financing Telco infrastructure sharing requirements as part of Interconnection and Collocation rules
Regulations to allow any operator the right to request sharing from another – fibre & masts
Ensuring new fibre and mast buildouts comply with standards to support sharing
E.g universal service fund requirements but could be could apply to all new buildouts, need for common standards
Key Policy Issues for Infrastructure Sharing (1)
In-building planning requirements Ensuring ducts are in all new public buildings
and housing estates Supporting active infrastructure sharing –
wholesale & retail Wholesale fibre (including open access landing
stations and 4G networks (govt, private, PPPs), Mobile Roaming, MVNOs
Duct sharing policies & dig-once land-use planning rules
Public Works Policies, Communication regulator policies requiring first operator to dig to make sufficient space available for other operators
Key Policy Issues for Infrastructure Sharing (2)
Limit cost and procedures for rights of way Pole, municipal ROW and premises mast site
rental price caps
Simplified cross-border digging procedures One stop shops for permitting
Supporting infrastructure buildout co-ordination Multi-sectoral infrastructure databases and GIS
Key Policy Issues for Infrastructure Sharing (3)
