Business

Infrastructure Provider: License for sharing Infrastructure

India’s Low Per Capita Internet Consumption

Even though presently, in India, the total data consumption is one of the highest in the world, per-user data consumption is much lesser compared to East Asia, Europe, and America countries. As per the Digital Economy and Society Index (DESI) Connectivity Report 2019, published by the European Commission, Internet traffic per capita in Western Europe is 44 GB per month, and this mobile networks’ contribution is only 6%. In contrast, Internet traffic per capita in India is approximately 10 GB per month, mostly through mobile networks. Here, Government needs to cater to more telecom Infrastructure Provider license holders in the country.

Also Read: Who is infrastructure provider

Why is data consumption low in India?

In India, growth in data consumption through mobile networks has limitations due to spectrum availability constraints and the fact that, due to the non-availability of optical fibre in the access backhaul network, most of the Base Stations are working on Microwave Backhaul transmission links, which have capacity limitations.

Infrastructure Provider solution: Optical Fiberization

At the end of the financial year 2018-19, the number of Base Transceivers Sites having optical fibre connectivity is approximately 30% only. The widespread deployment of optical fibre for connecting 4G and 5G Base Transceivers Stations (BTS) and rolling out broadband wireline access networks require substantial fresh investments across the country. Here ‘access network’ refers to only the ‘Access’ part of a telecommunication network. The ‘Backbone’ and ‘Core’ are other significant parts of a telecommunication network. Accordingly, the NDCP-2018 emphasizes investments in telecom infrastructure, facilitating the development of Open Access Next Generation Networks, increasing access to fixed line broadband, and fiberisation of mobile networks.

Infrastructure Provider Investment in 5G Technology

Further, the upgradation of the existing mobile networks to 5G technology will require additional investments at an accelerated pace. The roll-out of 5G networks is expected to use higher frequency bands. This upgradation will entail, amongst other things, the deployment of a large number of small cells. This will result in a massive increase in the number of Base Transceivers Stations compared to existing networks. The upgradation of the existing mobile networks to 5G and network densification requirements may create a greater incentive for fiberisation of the networks.

Also Read: Adjusted Gross Revenue

Infrastructure Provider’s Small Cell Deployment

By deploying small cells, mobile operators will be able to support significantly higher capacity in dense areas. Also, it can improve coverage in areas where building blockage otherwise reduces signal strength.

What are Small Cells?

Small cells are a technology shift for operators and are leading to the emergence of a new ‘as-a-service’ business model. This can be a new opportunity for Infrastructure Provider (IP) companies in our country.

SCaaS

Small-Cell-as-a-Service (SCaaS) models allow operators to avoid much of the CapEx involved in massive small-cell roll-outs. It also enables cost savings through multi-operator deployments. SCaaS providers may seek to leverage existing asset ownership of sites, backhaul connections, etc., to deliver cost savings to operators.

HetNet: An Integrated Telecom Infrastructure

Technological advancements, as well as capacity requirements, are driving the network evolution towards an integrated network. These networks are called HetNet (Heterogeneous Network). A HetNet consists of macro cells, micro/small cells, and Wi-Fi Access Points. Fabrication of these integrated networks by each TSP in non-sharing mode would be quite costly and time-consuming. It may increase the cost-of-service delivery to customers substantially. Any substantial increase in customer cost-of-telecom services would affect affordability and demand for these services.

Also Read: TEC Registration: How to file an appeal with the TEC?

Infrastructure Provider: Existing Structure Utilization

With technological advancement, sharing an antenna, feeder cable, Base-Band unit, and transmission systems with multiple mobile service providers has become possible while still using their own assigned spectrum. Each mobile service provider must also maintain the quality of service and other operating parameters separately. Despite using shared access networks, the advances in technology and applications have enabled service providers to differentiate their offerings in the market. This will be more visible after the roll-out of 5G cellular networks. In addition, in some remote and less accessible areas, sharing access networks could facilitate the provisioning of telecom services at affordable prices. In view of all these benefits, globally, infrastructure (Active as well as Passive) sharing is being encouraged.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button