Telecoms firms fail to implement infrastructure sharing

of sharing their infrastructure to increase network coverage around the country.
Sharing of infrastructure has become a worldwide phenomenon in the sector as a means to circumvent the high levels of capital expenditure required in the business.
The move has resulted in competitors becoming partners as they try to reduce financing requirements.
It costs over US$400 000 to set up a single base station.
While laws governing the country’s telecommunications sector allow for network infrastructure sharing, the three mobile firms, Econet, Telecel and NetOne have over the past decade struggled to implement the idea; instead of trading accusations over who was thwarting the initiative.
Experts in the sector say there is “very little’ sharing of infrastructure taking place at the moment.
Stakeholders have, in the meantime, heavily criticised the players for competing in setting up of the same infrastructure such as base stations, in virtually the same place while other areas remain neglected.
Arguments for infrastructure sharing stem from the fact that the three companies have in some areas built three towers at the same location.
Experts have also said failure to share infrastructure has been in some cases for selfish reasons aimed at maintaining a competitive advantage, even where it made business sense to share.
Telecommunications Operators Association of Zimbabwe chairperson Mr Reward Kangai said that while it was possible to share infrastructure, there were a variety of reasons why sharing was problematic.
“Infrastructure sharing needs to be done right from inception,” said Mr Kangai, who is also the managing director of NetOne.
The Toaz boss argued that the three companies had been given licences at different times and had, as a result, different structural specifications for their infrastructure.
The towers, for example, were not designed to carry more than one antenna, which made it difficult to share, he argued.
The mobile companies also use different equipment suppliers such as Nokia, Siemens and ZTE of China.
Sharing, Mr Kangai said, could be seriously considered for new infrastructure.
Telecel boss Mr Amiable Mpore recently criticised NetOne for lacking the spirit of cooperation and refusing to share its infrastructure.
The company, which is rated second biggest in terms of subscriber base, is sharing part of its infrastructure with Econet and TelOne.
“I do not believe it (sharing) takes away the competitive advantage but it actually reduces the cost of rolling out the network,” said Mr Mpore.
“We are sharing with Econet and TelOne but it is not happening with the other operator. We have tried but they have refused.”
TelOne is the only fixed telephone provider in the country.
Mr Kangai, however, said the idea of sharing for some networks were using the NetOne infrastructure while they provided nothing in return.
“We were prepared to share but their idea of sharing was to use our infrastructure and so the talks fell by the wayside,” the NetOne boss said.
Both NetOne and Econet claim to have the widest network coverage in the country, with Telecel mostly covering major cities and towns.
Experts contend it was up to the regulator, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) to enforce infrastructure sharing.
“For sharing to happen, there has to be enforcement which cannot be done by the operators but by the regulator,” said a telecommunications analyst. The regulator has previously insisted that it is playing its part by encouraging the players to share their infrastructure.
Major advantages of sharing include limited duplications, improved products and services and improved customer service.
Infrastructure sharing is also lauded for opening up markets for increased competition, as it becomes less expensive for new players.
Zimbabwe currently has about 9,2 million mobile phone subscribers. – New Ziana.