Encourage sharing of telecommunications infrastructure

Currently, network operators around the world tend to gradually reduce their ownership of passive telecommunications infrastructure such as antenna towers, stations, etc. Instead of investing in new ones themselves, network operators rent infrastructure from other service providers to significantly reduce operating costs. In addition, encouraging network operators to share infrastructure also helps save social investment resources.

According to statistics from research company Omdia, by the second quarter of 2024, there were a total of 253 infrastructure sharing agreements between operators worldwide, an increase of 53% compared to 2020 (165 agreements) and an increase of 208% compared to 2015 (82 agreements).

Pioneering steps

The Global Mobile Association (GSMA) estimates that sharing passive telecommunications infrastructure will help businesses save 16-35% of CAPEX/OPEX costs (initial infrastructure investment costs/operating costs). Meanwhile, sharing active telecommunications infrastructure will help save even more, from 33-45% of CAPEX and from 30-33% of OPEX. In addition, sharing infrastructure also has environmental benefits such as reducing energy consumption and reducing people's concerns about radiation. Recognizing this issue, state management agencies have issued many regulations to promote the sharing of telecommunications infrastructure.

Specifically, the 2009 Telecommunications Law and the 2023 revised Telecommunications Law have specific provisions on "Sharing of telecommunications infrastructure" to create a legal corridor for businesses to implement. In addition to completing the promotion policy framework, since 2020, the Ministry of Information and Communications has directly chaired and organized domestic network operators to sign agreements on sharing infrastructure.

The Prime Minister has approved the information and communications infrastructure planning for the 2021-2030 period, with a vision to 2050, and approved the Digital Infrastructure Strategy to 2025, with a vision to 2030, both of which identify the viewpoint and orientation to increase infrastructure sharing among businesses.

Implementing the direction of the Government and the Ministry of Information and Communications, domestic network operators have deployed many infrastructure sharing activities. A representative of the Vietnam Posts and Telecommunications Group (VNPT) said that the unit is currently sharing and using more than 5,000 station infrastructure with other network operators. Of which, there are more than 2,000 4G mobile stations shared with Mobifone Telecommunications Corporation under the Strategic Cooperation Agreement on Sharing Telecommunications Infrastructure between the two parties (signed in March 2024).

On the other hand, VNPT also increases the sharing of infrastructure of socialized units with more than 19,000 stations. Regarding fixed network infrastructure, VNPT is also sharing with many other units fiber optic cable infrastructure, sewers, and peripheral networks in provinces and cities to maximize the existing capacity of the Group and enterprises.

Enhance cooperation

However, the actual implementation of network operators has shown that there are some barriers, competition in infrastructure instead of competition in service quality. On the other hand, enterprises have different network plans, different key business market segments, while the existing telecommunications infrastructure such as basic mobile networks currently has 4 types of technology from 2G to 5G, so the ability to meet the demand for shared infrastructure is low.

According to experts, state management agencies need to continue to supplement regulations related to the sharing of telecommunications infrastructure among enterprises in the direction of mandatory sharing if it is technically feasible, on the basis of contracts between enterprises; supplement regulations to encourage and promote active infrastructure sharing among network operators according to advanced models in the world.

On the business side, it is also necessary to change the perspective from competing on infrastructure to competing on service quality; accelerate the roadmap for switching off old 2G/3G mobile technologies; work together to solve challenges to promote infrastructure sharing on the basis of mutual benefits and the common benefits of the whole society.

According to Decree 163/ND-CP issued on December 24, 2024, the Government has stipulated the active sharing of telecommunications infrastructure among enterprises on the principle of encouraging sharing to save costs of deploying telecommunications networks, while ensuring appropriate competition and radio frequencies. The Telecommunications Department is also promoting enterprises to deploy the telecommunications infrastructure leasing investment model (TowerCo) in Vietnam.

Vietnam is in the process of strongly deploying the 5G network, the technology uses a higher frequency band than 4G, has a greater attenuation, so the coverage area of ​​each broadcasting station is also narrowed by about 15-20%. According to calculations, network operators wanting to cover the whole country with 5G need to build several hundred thousand broadcasting stations, while the investment cost of each 5G station is 3-4 times higher than the previous 4G station.

Deputy Director of the Telecommunications Department (Ministry of Information and Communications) Nguyen Phong Nha said that the deployment of 5G network infrastructure sharing will help network operators save on investment costs, operating costs, and rapidly expand 5G coverage nationwide, serving national digital transformation. On the other hand, Vietnam is also planning to stop 3G technology in 2029. If network operators see that 3G has completed its mission, they can accelerate this process. At that time, operating costs will decrease and network operators can devote resources to the next generation of networks.

Source: https://nhandan.vn/khuyen-khich-dung-chung-ha-tang-vien-thong-post857261.html