Monday, March 13, 2006

Telecom Infrastructure sharing for QoS

Finally TRAI has been successful to catch operators by their ears. Declining Quality of service has got operators together to share infrastructure. As compared to previously 30% sharing, operators will now share 70% of their infrasturcture. With existing infra, they will go for revenue sharing and new deployment will see operators chipping in investment.

This will enhance quality of coverage for the consumer and effects can be seen starting from next month in April. There are few areas which out of coverage and they also can't help with it. This step will be starting first in Delhi and Mumbai to further implement in other cities.

Infrastructure sharing is an agreement among operators wherein they share network of each other thus increasing coverage and signal strength. This reduces cost and enhances the reach of coverage. This is a positive step for making consumer as the king. India is world's fastest growing market at 39% in Q4 2005 and has seen lowest tariff with an average ARPU of $10.China is also growing market but has better quality coverage.

With last mile being a challenge and focus shifting to B and C circles,infra sharing is only left option if operators want to avoid extra cost and thus increase their EBITDA.This comes with reduced OpEx.With population in village in low, infra sharing has been proposed there too for increasing the reach.

3 comments:

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