A study on telecommunicationn tower sharing among mobile network operators in Zambia
Date
2018
Authors
Chihana, Emmanuel Lusungu
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Volume Title
Publisher
The University of Zambia
Abstract
Mobile Network Operators (MNOs) Airtel, MTN, and Zambia Telecommunication (Zamtel) in Zambia adopted a tower-sharing model practised in developed countries such as the United States, Canada. At network roll-out, the operators retained ownership of the towers and at the same time provided telecommunication services. As the cost of providing network services to the growing active subscribers increased, recognized revenues dropped. To cut down on costs and improve their services, quality, pricing, and incentives offered, operators sold their towers to IHS Towers and began to lease back space on the towers. The capital recovered from the sale was then invested in new technologies to not only improve services but also to retain and attract more customers. Within this research study, the adoption and effects of the models used during the infrastructure sharing was investigated.
Quantitative research was conducted on the telecommunication tower industry and mobile network operations. The research found that all network operators share infrastructure passively through IHS Towers and Zamtel, and no active infrastructure is shared. Among these, 75% of the towers are self-supporting used for voice and data. 54% of these towers are being shared while 46% of the towers share only the sites. The tower-sharing business model was mainly adopted to reduce capex. It is likely that potential entrants could adopt this model as they enter the market. The main
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Keywords
Telecommunication systems--Mobile communication systems--Zambia