Day 2 C2C - Infrastructure sharing Mott Macdonald

Bora Varliyagci

Head of Africa: Digital Infrastructure

Affordable Infrastructure Development

Infrastructure Sharing

• Definition

• Strategic Drivers

• Benefits

• Successful Examples

• Considerations

• Recommendations

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Within a wide context

Definition

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Joint use or development of

structures, facilities, platforms and

expertise, that all together can be

classified as resources, between

telecommunications and utility

operators and service providers for

efficient and effective service

delivery.

What does “Infrastructure Sharing” means?Affordable Infrastructure Development

Mott MacDonald | Infrastructure Sharing

PassiveSharing of space, electrical and civil engineering components

Example

Sharing of electronic, active or intelligent components

Active

Example


Why share?

Strategic Drivers

Affordable Infrastructure Development

What drives Infrastructure Sharing?

1Cost reduction and/or optimization (both CAPEX and OPEX) 2

Extending services to rural and uneconomical areas

3Facilitation of market entry and new revenue sources

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4Time to market and innovation agility



For All !

Benefits

Optimized utilization of

scarce resources

1

Avoid/reduce duplications

2

Reduced Cost

3

Reduced Risk

4

Improved Quality of Service

5

Effective Competition

6Innovative Services

8

New revenueopportunities

10

Reduced time to market

11


Key Benefits

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More options

7

Enlarged service

coverage

129

Green


Optimized utilization of

scarce resources

1

Avoid/reduce duplications

2

Reduced Cost

3

Reduced Risk

4

Improved Quality of Service

5

Effective Competition

6Innovative Services

8

Green

9

New revenueopportunities

10

Reduced time to market

11

25/07/2016 10

More options

7

Enlarged service

coverage

12


Everybody Wins !

Green

Operator /

Service

Provider

Regulator

Consumer


Connect 2 Connect

No more an aspiration but reality with fast adoption and success in a very short time.

Successful Examples

TowerCo Africa Undersea Cables

Cloud/SDN/NFV

MVNOs

OTTs

Open Access FTTH

Carrier Neutral DataCentres

Open Access Fibre Backbone

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Source: TowerExchange

Cameroon

Cote d’ Ivoire

Rwanda

Zambia

Nigeria

South Africa

Uganda

Kenya

Niger

Burkina Fasso

Malawi

Egypt

Ghana

Congo Brazzaville

DRC

Tanzania

Nigeria 30,996

South Africa 25,000

Zimbabwe 1,400

Kenya 6,600

Ghana 5,983

Tanzania 8,800

Mozambique

5,800

DRC 4,350

Senegal 3,350

Uganda 3,485

2009 2016

0% (100)

10-40% OPEX

Savings

30-60% CAPEX

Savings

42% (51 000)


One doesn’t fit all!

Considerations

Does it make sense?

Considerations

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Trust

Regulatory Framework

Geographic Fit

Technical Fit

Commercial Fit

Alternatives

Market Maturity


Context

Different regulatory and competitive environment in each country may impact the degree and structure of infrastructure sharing.


For a successful partnership

Recommendations

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Share

more & more


In good faith

• Availability, capacity, safety

• Transparent cost base sharing

With due considerations

• Through trust driven partnerships and collaborations

• Study technical, geographical, commercial and cultural fit

Long Term Vision

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• Keep effective completion in mind

• With sustainable reciprocal agreements

• Recognize overall industry benefits


Intervention

Carefully study and understand the problem before formulating a solution

Infrastructure

Investment

Supply side

intervention

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Demand

Stimulation

• Restructuring (Functional or structural separation)

• Co-owned infraco

• National broadband company

• Fiscal measures (Direct & indirect subsidies eg.USF, tax benefits, license fee reliefs, etc.)

• Geographically focused government funded networks (eg. Municipal, provincial networks)

• Education for digital literacy

• End-user subsidies (eg. tax benefits on devices)

• Relevant and local content (eg. health, education, public service, etc.)

Market Failure

Socio-Economic Impact


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Bora Varliyagci

Head of Digital Infrastructure

E [email protected]

T +27 (0)11 052 2199

W mottmac.com/communications

You can reach us by phone, email or through our website. We look forward to talking to you.


Connect 2 Connect


Thank you

Technology

Day 2 C2C - Infrastructure sharing Mott Macdonald