Telecom Infrastructure Sharing Explained

Infrastructure sharing in telecom is a strategic practice where multiple mobile network operators (MNOs) share parts of their network infrastructure. This represents a significant shift from the traditional model. In the past, each operator built and managed its own separate, parallel network. The move towards a more collaborative approach is driven by powerful economic and operational incentives. It allows operators to reduce costs, accelerate network deployment, and improve service quality. This guide provides a comprehensive explanation of this critical industry trend. It covers the different models, benefits, and the future of shared telecom networks.

Defining Telecom Infrastructure Sharing

Infrastructure sharing in telecom involves two or more operators jointly using network components. This practice can range from sharing a simple physical site to sharing complex active radio equipment. The core idea is to eliminate the duplication of costly network assets. This allows operators to focus their investments on areas that differentiate their service to customers. This collaborative model has become a cornerstone of modern network strategy. It is supported by regulators and embraced by operators worldwide as a key to sustainable growth. The concept is a major part of the overall communication tower technology infrastructure.

The Distinction Between Passive and Active Sharing

A fundamental concept in infrastructure sharing in telecom is the difference between passive and active sharing. Passive sharing involves the sharing of non-electronic infrastructure. This includes the physical site, the steel tower structure, power supplies, and shelters. This is the most common and simplest form of sharing. Active sharing involves the sharing of electronic elements of the network. This includes the Radio Access Network (RAN) – the antennas and base stations – and even the core network switches. Active sharing requires a much deeper level of technical and operational collaboration between operators.

Key Motivations for Operators to Share

The primary motivation for infrastructure sharing in telecom is cost reduction. Building and maintaining a mobile network requires enormous capital expenditure (CAPEX) and operational expenditure (OPEX). Sharing infrastructure allows operators to split these costs. This frees up capital for other investments, like new spectrum or marketing. Another key motivation is faster network rollout. By sharing sites, operators can deploy their networks more quickly than if they had to build every site from scratch. This is especially important for the rapid deployment of new technologies like 5G.

The Role of Regulators in Promoting Sharing

Regulators play a crucial role in the landscape of infrastructure sharing in telecom. Many national regulatory bodies actively encourage or even mandate certain forms of sharing. They see it as a way to promote competition, improve service in rural areas, and reduce the environmental impact of the industry. Regulators often set the rules and frameworks that govern how sharing agreements can be structured. Their support has been instrumental in the global adoption of this practice.

Models of Passive Infrastructure Sharing

Passive infrastructure sharing in telecom is the most widely adopted form of collaboration. It deals with the non-electronic, physical components of a cell site. This model allows operators to maintain complete control over their own active network equipment and spectrum. This means they can still compete on network quality and performance. Passive sharing is often facilitated by independent tower companies. They act as a neutral host for multiple operators.

Site Sharing: The Foundation of Collaboration

The most basic form of passive sharing is site sharing. This involves multiple operators sharing the same piece of land or rooftop space for their equipment. They share the ground space, the access road, security fencing, and the concrete foundation for the tower. This is the simplest level of infrastructure sharing in telecom. It helps to reduce the costs associated with site acquisition and civil works. It also minimizes the environmental footprint of the network.

Tower Sharing: The Most Common Model

Tower sharing is the most common and well-known form of passive sharing. In this model, multiple operators place their antennas on a single, shared tower structure. Each operator has its own set of antennas, but they all share the physical steel mast. This eliminates the need to build multiple, redundant towers in the same location. The design of the tower must be robust enough to handle the combined weight and wind load of all the tenants' equipment. The quality of the tower construction materials is therefore critical.

Sharing of Non-Electronic Site Components

Beyond the tower itself, operators can also share other passive components at the site. This includes the equipment shelter or cabinets. It also includes the power supply system and the backup generators or battery banks. The sharing of power systems is particularly beneficial. It allows for the sharing of the high costs associated with power equipment and fuel. This is a key aspect of infrastructure sharing in telecom, especially for off-grid sites that rely on renewable-energy-telecom-towers.

Levels of Passive Infrastructure Sharing

Passive sharing can be broken down into several distinct levels. Each level represents a deeper degree of collaboration and cost-sharing. Understanding these levels is key to understanding the different options available.

• Site Sharing: Sharing the land and basic civil works.
• Tower Sharing: Sharing the physical tower structure for mounting antennas.
• Power and Shelter Sharing: Sharing the power supply, backup systems, and equipment housing.
• Backhaul Sharing: Sharing the transmission link (often fiber) that connects the site to the core network.

Models of Active Infrastructure Sharing

Active infrastructure sharing in telecom is a more complex but potentially more beneficial form of collaboration. It involves sharing the electronic components of the Radio Access Network (RAN). This requires a much deeper level of integration between the operators' networks. It also requires a high degree of trust and operational coordination. While less common than passive sharing, active sharing is gaining traction, especially for 5G deployments and rural network expansion.

Radio Access Network (RAN) Sharing

RAN sharing is the most common form of active sharing. It allows multiple operators to share the same radio access network, which includes the base stations and antennas. There are two main models for RAN sharing. The first is MOCN (Multi-Operator Core Network). In this model, operators share the entire RAN, but they each use their own separate core network. The second model is MORAN (Multi-Operator Radio Access Network). In this model, operators share the base station equipment but use their own separate antennas and radio frequencies. This type of infrastructure sharing in telecom is technically complex.

Spectrum Sharing

Spectrum sharing is another form of active sharing. This is where multiple operators are allowed to use the same block of radio frequency spectrum. This is less common, as spectrum is usually licensed exclusively to a single operator. However, some regulators are exploring models for dynamic spectrum sharing. This would allow spectrum to be used more efficiently. This form of infrastructure sharing in telecom has the potential to significantly increase network capacity.

Core Network Sharing

The deepest level of collaboration is core network sharing. This is where operators share the components of their core network, such as the switches and servers that manage the entire network. This is very rare. Operators view their core network as a key strategic asset and are generally unwilling to share it. However, some forms of core network sharing may be used in specific circumstances, such as for national roaming agreements.

The Role of Tower Companies as Catalysts

The rise of independent tower companies (towercos) has been the single biggest catalyst for infrastructure sharing in telecom. The entire business model of a towerco is based on the principle of passive infrastructure sharing. These companies have professionalized the management of shared infrastructure. They have made it easier and more efficient for operators to co-locate on the same towers.

The Towerco Business Model

A towerco is a neutral-host provider. They build, own, and operate a large portfolio of towers. They then lease space on these towers to multiple MNOs. This is their core business. They are experts in site acquisition, construction, and maintenance. This specialization allows them to manage the passive infrastructure more efficiently than the operators could themselves. This model is the foundation of infrastructure sharing in telecom in many parts of the world.

The Neutral Host Advantage

Because towercos are neutral, they can work with all the mobile network operators in a market. They provide a level playing field for all tenants. This neutrality is a key advantage. It simplifies the process of co-location. Operators do not have to negotiate with their direct competitors to get space on a tower. They simply sign a lease agreement with the neutral towerco. This streamlined process accelerates network deployment.

Economic Benefits for All Parties

The towerco model provides economic benefits for everyone involved in infrastructure sharing in telecom. For the MNOs, it converts a large capital expenditure (building towers) into a predictable operational expenditure (leasing space). For the towercos, it creates a stable, long-term revenue stream from multiple tenants. For the entire industry, it leads to a more efficient use of capital and a faster, more cost-effective network rollout. This efficiency is a key reason for the model's global success.

The Impact of New Technologies on Sharing

New technologies are both driving the need for and benefiting from infrastructure sharing in telecom. The demands of 5G, the rise of smart technologies, and the need to connect remote areas are all pushing the industry towards greater collaboration. Infrastructure sharing is a key enabler for the successful deployment of these next-generation networks.

Sharing is Essential for 5G Networks

The deployment of 5G requires a much denser network than previous generations. It is not economically feasible for each operator to build its own separate dense 5G network. Therefore, infrastructure sharing in telecom is essential for a successful 5G rollout. This includes sharing macro tower sites for wide-area coverage and potentially sharing small cell infrastructure in dense urban areas. The high cost of 5g telecom towers makes sharing a financial necessity.

Smart Towers and Dynamic Sharing

The development of smart communication towers can facilitate more advanced forms of sharing. A smart tower can monitor the resource usage of each tenant in real-time. This could enable more dynamic and flexible leasing models. This data-driven approach can make infrastructure sharing in telecom even more efficient. It allows for a more precise allocation of costs and resources among the sharing partners. The safety of these complex shared sites must adhere to all telecom tower safety standards.

Enabling Connectivity in Remote Areas

Infrastructure sharing is a key enabler for extending network coverage to remote and rural areas. It is often only economically viable to build a single tower in a small, remote village. This single tower must then be shared by all operators who wish to provide service there. This is particularly true for satellite-linked communication towers, where the initial investment is high. This model of infrastructure sharing in telecom is crucial for bridging the digital divide.

The Trend of Shared Backhaul

Another growing trend is the sharing of backhaul infrastructure. This includes the fiber optic cables that connect the tower site to the core network. Multiple operators can share the capacity on a single fiber line. This shared approach to fiber integration telecom towers is very efficient. It avoids the need for each operator to lay their own separate fiber cable. This is a logical extension of the infrastructure sharing in telecom model. The entire lifecycle of these shared assets must be carefully managed, a key part of telecom tower lifecycle management.

Conclusion

Infrastructure sharing in telecom has evolved from a niche practice to a mainstream global strategy. It is a powerful tool for reducing costs, accelerating network deployment, and promoting competition. The models for sharing range from simple passive co-location on towers to complex active network sharing. The rise of independent tower companies has been a major catalyst for this trend. As the industry moves towards the 5G era, the need for collaboration will only grow. Infrastructure sharing in telecom is no longer just an option; it is a fundamental requirement for building the sustainable, efficient, and powerful networks of the future.