When TowerXchange speak to operators and tower companies about what they need from their regulators to best support infrastructure sharing, there is a common list of requests.
Explicit telecoms infrastructure sharing regulations are preferable to policies found within general communications and anti-trust policies or, worse still, policies pertaining to electricity towers
A fairly priced, transparent licensing regime for network providers that keeps less reputable players out of the market
Light-touch regulation supporting competition, backed up with help to resolve disputes, but not getting involved at site level or in pricing
Encouragement, rather than mandating infrastructure sharing is generally preferred to enable the economics of competition to define the market
Consideration of incentives for rural connectivity, with efficient investment of Universal Access Funds
…All supported by tax authorities that share the same ethos of clarity and fairness.
The critical requirements seem to be transparency and speed of response. As ever, time to market is critical, and having a responsive regulator able to swiftly license and support the market entry of value-adding infracos helps attract substantial infrastructure investments.
The regulation of infrastructure sharing in Uganda – a positive example
The operators and towercos in Uganda speak highly of the “helpful, transparent and positive” support for infrastructure sharing received from regulators the Ugandan Communication Commission (UCC).
TowerXchange spoke to Patrick Mwesigwa, Director of Technology and Licensing at the UCC. He told us “the UCC encourages co-location and sharing of infrastructure because it enables maximum optimization of resources and limits duplication of network resources; optimizes capital expenditure and hence frees funds for investment in core network equipment; and contributes to protection of the environment.”
It seems that the UCC are preparing an explicit infrastructure sharing policy: “The UCC is finalizing guidelines which will require operators to share infrastructure wherever feasible under mutually agreed commercial arrangements. Infrastructure sharing is expected to provide good incentives for new entrants in the market, while it will also enable the existing operators to optimse the use of their infrastructure,” adds Mwesigwa.
We asked Mwesigwa: how are towercos licensed in Uganda?
“Tower companies in Uganda are issued with Public Infrastructure Provider (PIP) licenses which enable them to erect towers and other related facilities which are rented by service providers at mutually agreed commercial arrangements.”
What is the UCC’s view on the impact of infrastructure sharing on rural connectivity?
“Tower sharing will lower the costs for development of networks in the rural areas and thus make the business more viable for existing and new operators. We envisage rapid penetration of services in the rural areas as the costs of infrastructure go down.”
We concluded by asking the UCC’s view of active infrastructure sharing – for example, Rural NetCo has a license in neighboring Tanzania.
“The UCC will issue guidelines that require operators mainly to share passive infrastructures such as towers, cable ducts, antennas, buildings et cetera. But the guidelines also permit sharing of active infrastructure under mutually agreed commercial arrangements,” concluded the UCC’s Mwesigwa.
