Bora Varliyagci Head of Africa: Digital Infrastructure Affordable Infrastructure Development Infrastructure Sharing
Bora Varliyagci
Head of Africa: Digital Infrastructure
Affordable Infrastructure Development
Infrastructure Sharing
• Definition
• Strategic Drivers
• Benefits
• Successful Examples
• Considerations
• Recommendations
25/07/2016 Mott MacDonald | Infrastructure Sharing 2
25/07/2016 4
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
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
25/07/2016 7
4Time to market and innovation agility
Mott MacDonald | Infrastructure Sharing
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
Infrastructure Sharing
Key Benefits
25/07/2016 9
More options
7
Enlarged service
coverage
129
Green
Mott MacDonald | Infrastructure Sharing
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
Infrastructure Sharing
Everybody Wins !
Green
Operator /
Service
Provider
Regulator
Consumer
Mott MacDonald | Infrastructure Sharing
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
25/07/2016 12Mott MacDonald | Infrastructure Sharing
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)
Does it make sense?
Considerations
25/07/2016 18
Trust
Regulatory Framework
Geographic Fit
Technical Fit
Commercial Fit
Alternatives
Market Maturity
Mott MacDonald | Infrastructure Sharing
Context
Different regulatory and competitive environment in each country may impact the degree and structure of infrastructure sharing.
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
25/07/2016 21
• Keep effective completion in mind
• With sustainable reciprocal agreements
• Recognize overall industry benefits
Mott MacDonald | Infrastructure Sharing
Intervention
Carefully study and understand the problem before formulating a solution
Infrastructure
Investment
Supply side
intervention
25/07/2016 22
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
Mott MacDonald | Infrastructure Sharing
25/07/2016 23
Bora Varliyagci
Head of Digital Infrastructure
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.
Mott MacDonald | Infrastructure Sharing