One of the most significant trends in the telecommunication sector in recent years is “Infrastructure Sharing Model”. The fierce competition and rapidly declining prices having started among operators direct operators to review again their expenses and improve their operations. Based on this reality, operators have been required to adopt many strategies. One of the significant ones of such strategies is infrastructure sharing model. By means of infrastructure sharing model, operators provide significant and sustainable savings in their network expenditures.
Low Total Ownership Cost
One of the important reasons forcing the operators to share is the fact that they may find the opportunity to be able to make savings from their costs they assumed in order to establish and operate the infrastructure thanks to the sharing model. The savings may either be in the form of lowering their costs in their existing operations or lowering the costs in the fields to be newly created.
In sharing model, reducing the works to be performed repeatedly and increasing the business volume allow operators to reduce their total costs of having. This reduction occurs both on CapEx and OpEx. At the same time, operators will not have assumed the first investment costs being in very high amounts and will have the opportunity to direct the savings they are to make here to new technological investments.
More Productive Operation Management
By means of the sharing model, operators will find the opportunity to be able to reduce their infrastructure assets and their CapEx they finance with the equity capital in their balance sheet. Taking on lease the network infrastructure from another infrastructure company instead of making such investment to be made by them will prevent operators from being affected by economic fluctuations.
In the globalizing and developing new world order, company shareholders have started adopting the strategy of keeping less assets in their balance sheets in order to be able to obtain more earnings. Many sectors develop and grow with this strategy started by operators by sharing their infrastructure or transferring the same externally.
Keeping less infrastructure assets at their hand by transferring their infrastructures externally, operators transfer the risks they have to infrastructure operators. The most important subject here is their leasing costs increasing with each passing day and the leasing procedures. The price rises made especially in renewal periods have a great risk for operators. The long-term agreements to be made with infrastructure companies eliminate these risks. Operators are required to make available certain expensive equipment such as power supplies, air conditioners, etc. in their field as well. Taking into consideration the pilferage events in many countries, this is one of the great risks to be sustained by operators. With sharing the containers, power and air-conditioning systems, operators shall not have assumed these kinds of risks either.
Environmentally-sensitive Working Model
Network sharing is one of the efficient ways used by operators for them to be able to support their environmentalist personality. With sharing network, operators will use less tower material and consume less energy. For instance, with less usage of 1 tower more, 5.000 KWH less energy, 300 kg less zinc and 10.000 kg less steel shall have been used.
In order to be able to better understand the environmental benefits of network sharing, one is required to look at the subject on how operators conduct their operations. In a typical city, network usage at nights or at weekends is lower compared to the normal working day. In spite of this, the sites of operators do unfortunately continue to work and consume energy at nights and weekends. However, with network sharing model, it is possible to lower the number of towers and ensure that the same service is conveyed to subscribers. And this means that less energy is to be consumed and less carbon release is to be incurred.
Swift Market Access
Network sharing increases the speed of opening new fields and allows operators to cover wider areas more swiftly with low CapEx opportunity. By means of swift coverage, operators will have the opportunity to enhance the satisfaction of their own customers. At the same time, operators start earning income from the very first day by eliminating the period to elapse for installation of site.