“PASSIVE INFRASTRUCTURE SHARING MODEL” has lately become a trending topic in terms of telecommunication sector. Competition between the operators, and decreasing prices have made the operators review their expenses and restore their operations.
For that reason, operators had to adopt different strategies. “PASSIVE INFRASTRUCTURE SHARING” model is the most important one among these.
Low Total Ownership Cost
One of the most important reasons that push the operators to share is that they have a chance to save the money they spend on installing new infrastructure and controlling it. Saving money could not only be about lowering the costs of current operation, but also lowering the costs of fields that is to be built.
Both reducing the recurring jobs on Sharing Model and increasing the work load help reduce the total ownership cost. This saving is on CapEx and OpEx.
Operators with sharing model could save money on total ownership cost up to %50. In addition, operators would not undertake the first investment money which is quite expensive, and they would use that saved money on new technological investments.
More Productive Business Management
With the sharing model, operators will have a chance to reduce passive infrastructures and CapEx expenses they cash up from their capital stock. Operator’s hiring network investments from an infrastructure company instead of doing this investment on their own would prevent the operator from economic fluctuations.
In increasingly globalized new world order, company shareholders have adopted the strategy of having less property on their company statement in order to earn more profit. In many sectors, this strategy that operators have started by sharing their infrastructures or exporting them has developed.
Operators that reduce their infrastructural property by exporting them to infrastructure companies have lower risk. The main points in this are the hiring procedures and increasing day-by-day hiring costs. Especially highly raised costs in regeneration periods are great risks. Long term contracts with infrastructure companies puts these risks away. Operators have to keep the expensive equipment such as power sources and air conditioner in their fields ready. Considering the robbery events in many countries, this is another risk. By sharing the container, power and air-conditioning systems, companies will also get rid of these kind of risks.
Eco-friendly Working Model
Network sharing is an effective way that operators use to promote their eco-friendly image. With the help of network sharing, operators will use less material for tower building and use less power. For instance, when just 1 tower is not used you will be using less than 5.000 KWH energy, and save 300kg zinc and 10.000kg steel.
To understand the environmental benefits of network sharing, we need to observe how operators run their operations. In a random city, the usage of network at night and on weekend is less than it is on weekdays. Yet, the fields of operators keep on working even at nights and on weekend. However, with the help of network sharing, it’s possible to reduce the number of towers and provide same service to subscribers, which means less usage of energy and less carbon emission.
Quick Market Accessibility
Network sharing increases the speed of opening new fields and enables the subscribers to provide network coverage to wide areas in a faster way with lower CapEx potential. With the quicker network coverage, operators have chance to satisfy their customers. In addition, operators will start making money as of the first day by removing the field installing process.