Data consumption and overall mobile penetration have massively increased in CALA over the last few years. Satisfying this positive boom requires considerable infrastructure efforts as well as innovative and forward thinking approaches. Traditional macro sites need complementary technology and regional governments and regulators will have to play a key role in supporting the necessary development to drive the industry forward.
Telecom experts sat down in a crowded room at the TowerXchange Meetup Americas in Boca Raton to discuss what operators need to build in CALA. Many different Spanish accents but a clear common view: MNOs and towercos should work together to maximise the benefits that telecoms infrastructure can bring to the region — and to do so, they will have to be very creative.
Data demand is increasing among subscribers, who are pushing for higher quality services and new technologies, especially in urban areas. In theory, that is a very favourable situation for operators, but they are now struggling to develop the required infrastructure to satisfy upcoming demand.
In fact, building a tower is becoming an arduous and lengthy process in some locations across Latin America, due to permitting and other hurdles, and regional MNOs are actively seeking alternatives to speed up the process and facilitate infrastructure advancements. Moreover, new technologies such as small cells and fibre require synergies across the value chain as well as a very proactive approach from everybody involved.
“One of our main infrastructure concerns is dealing with municipalities and local permits. The lack of energy capacity and the need for backup solutions are additional crucial issue.” Roundtable’s chair Eduardo Concha from Entel Chile summarised two of the main barriers for operators and towercos when deploying traditional infrastructure in Latin America.
The energy efficiency roundtable, which TowerXchange summarised in this article, extensively covered how power supply has become an operational and financial headache for the telecom sector in CALA. And it is not the only one. Social opposition, long permitting processes and regional laws are slowing down infrastructure expansion.
“In historic districts like La Serena or Central Santiago, there are so many law restrictions that is almost impossible to build a tower. Nowadays macro towers are expensive and the approval process takes way too long,” said the moderator. “Entel,” he explained, “is not going to stop building towers, but we definitely need to actively explore Distributed Antenna Systems (DAS) as well as other alternatives.” Chile is a very restrictive environment where towercos and operators have to deal with the infamous Ley de 12 metros, a challenging piece of regulation that complicates the construction of any tower that overpass 12 metres in height.
Entel’s representative shared a very interesting case study. Their existing infrastructure in Santiago did not have enough capacity to satisfy the area requirements and the local government would not allow the construction of another tower. They then suggested an agreement to the regulator where they would co-locate security cameras in their posts, which appealed to the municipality and accelerated the permitting process of a new site.
As highlighted by several panellists, municipalities are one of the first barriers that both operators and towercos have to face when creating a new initiative. “Local governments are making our lives very difficult. Their approval process often takes longer than what it should and they keep coming up with new fees and extra charges,” said one of the participants.
Contributors agreed that every small urban or rural jurisdiction in CALA has its own methods and it is very challenging for them to deal with each individual request. In some cases, even if you have the local government on your side and all the permitting is in order, local communities could try to stop your project.
Finally, urban areas present new additional challenges. In the effort to modernise cities like Santiago, local constructors are now using rooftops to build recreational zones and swimming pools, so any kind of telecom infrastructure does not fit in their plans.
Innovation as a key solution
“Take the attention out of the infrastructure itself and focus on the many benefits that is going to bring to the area and the local communities,” stated one of the participants. The extra services that the tower can add to both consumers and citizens can increase the operator’s revenue as well as help them in boosting social license to operate in specific areas.
Design innovations and functional features are another alternative. One of the manufacturers mentioned how their modern and visually-friendly structures are becoming more and more appealing. “We are developing innovative, sophisticated shapes, very different to the traditional tower infrastructure, and the reception has been great so far. We are also reserving small spaces that allow cameras and screen integration, which perfectly works in urban scenarios.” Creativity is the way forward and increasing the services that your tower provide can thus increase your revenue.
Adding new features to the infrastructure cannot just improve the portfolio but also help accelerating permitting processes. First, companies need to be able to bring real value to the community; then they need to explain, communicate and engage with community and authorities to highlight the infrastructure’s benefits. Consequently, reducing your permitting process will cut down your cost and improve your efficiency.
Urban furniture such as traffic lights or stop signs can also allocate alternative infrastructure. One of the participants shared a very original idea that his company successfully executed. They got in touch with the local municipality and convinced them to use the old phone booth to allocate transmission systems, and the process took much less than usual. As mentioned, the role of local government and regulators is critical and the effort of educating them is absolutely worth it.
Public Wi-Fi services and fibre connection were other alternatives suggested. They can definitely appeal to local authorities when they evaluate the extra value of any infrastructure initiative, and they could drive potential IoT projects in the future.
In terms of technologies, DAS are the obvious, most popular choice. However, in big malls like the Costanera Center in Santiago, they are not going to be enough to satisfy the demand. Complementary small cells will be required and operators have to deal with local stakeholders again. Partnership with third parties such as advertising companies were another debated option. It would allow infrastructure providers and operators to share risks and split the initial investment. The evolution from standard macro towers to shorter, lighter structures have been a positive sign so far.
Different realities across CALA
CALA is a massive region and as it becomes obvious in each roundtable, every country faces so many different and specific challenges.
“Most professionals that work on technology areas in municipalities across Latin America are too focused on lighting and security, but telecommunications is out of their agenda,” mentioned one of the towercos. It might seem obvious, but nobody can question the crucial role of the internet in education, culture and overall social development. Towers and alternative infrastructure are a social need and operators must spend time and resources educating the society on their benefits. Lighting and security are two areas where synergies with telecommunications are not just possible but proven. Several participants mentioned cases where telecom infrastructure was used to allocate surveillance and lighting systems, which could work the other way around.
A well-experienced developer who has been operating in the region for years recognised the importance of social license to deploy infrastructure successfully: “The dialogue with the community is critical and we spend lot of time and resources dealing with social groups and authorities. We have a dedicated division that works with local communities and stakeholders.”
The towercos’ mission is not an easy one, as they also have to handle the pressure from MNOs too. “Operators usually demand the project to be ready quickly without taking into account the gruelling process of permitting,” stated one of the towercos, who later highlighted the need for dialogue and collaboration: “We indeed need to be more proactive and integrate new possibilities in the infrastructure. It would benefit operators and make a positive impact wherever the solutions are implemented.”
“In Argentina, the role of operators is key when deploying any infrastructure,” commented one of the interlocutors. “Operators are conceived as public service providers and in some cases, they are the only entity willing to take the risk of putting the infrastructure in place.” Going through the permitting process would be such a long, painful journey that Argentinian operators often skip the bureaucracy and choose to pay a sanction fee to the local authorities afterwards – which, by the way, will be reduced due the service to the public that they are providing.
What do operators need to build in CALA?
And most importantly, how are they going to do it? Dialogue, flexibility and innovation have to be the drivers to new and modern infrastructure in CALA. Towercos must consider new features and possibilities in their sites and operators have to engage in a proactive conversation to make them understand their requirements. The industry needs to spend time and resources in educating relevant stakeholders on the benefits and new horizons that infrastructure can open.
A long and very dynamic conversation in Boca Raton proofed that adding extra services to the equipment will improve your portfolio, ease the permitting process and increase efficiency in both sides. Operators and manufactures are open and already exploring cutting-edge solutions. How far are towercos willing to go?
