This document discusses infrastructure sharing, which refers to the joint use or development of telecommunications infrastructure between operators to efficiently deliver services. It defines infrastructure sharing, outlines the strategic drivers like cost reduction, discusses benefits such as optimized resource use and reduced costs, and provides examples of successful infrastructure sharing initiatives. The document also covers considerations for infrastructure sharing and provides recommendations, emphasizing the need to carefully study technical, geographical and commercial fit based on a long term vision and partnerships built on trust.

1. Bora Varliyagci
Head of Africa: Digital Infrastructure
Affordable Infrastructure Development
Infrastructure Sharing

2. • Definition
• Strategic Drivers
• Benefits
• Successful Examples
• Considerations
• Recommendations
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3. Infrastructure Sharing
Within a wide context
Definition

4. 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

5. Passive
Sharing of
space, electrical
and civil
engineering
components
Example
Sharing of
electronic, active
or intelligent
components
Active
Example

6. Infrastructure Sharing
Why share?
Strategic Drivers

7. Affordable Infrastructure Development
What drives Infrastructure Sharing?
1
Cost reduction
and/or optimization
(both CAPEX and
OPEX) 2
Extending services
to rural and
uneconomical
areas
3
Facilitation of
market entry and
new revenue
sources
25/07/2016 7
4
Time to market and
innovation agility
Mott MacDonald | Infrastructure Sharing

8. Infrastructure Sharing
For All !
Benefits

9. Optimized
utilization of
scarce
resources
1
Avoid/reduce
duplications
2
Reduced Cost
3
Reduced Risk
4
Improved
Quality of
Service
5
Effective
Competition
6 Innovative
Services
8
New revenue
opportunities
10
Reduced time
to market
11
Infrastructure Sharing
Key Benefits
25/07/2016 9
More options
7
Enlarged
service
coverage
12
9
Green
Mott MacDonald | Infrastructure Sharing

10. Optimized
utilization of
scarce
resources
1
Avoid/reduce
duplications
2
Reduced Cost
3
Reduced Risk
4
Improved
Quality of
Service
5
Effective
Competition
6 Innovative
Services
8
Green
9
New revenue
opportunities
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

11. Connect 2 Connect
No more an aspiration but reality with fast adoption
and success in a very short time.
Successful Examples

12. TowerCo Africa Undersea Cables
Cloud/SDN/NFV
MVNOs
OTTs
Open Access FTTH
Carrier Neutral
DataCentres
Open Access
Fibre Backbone
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13. 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)

17. Infrastructure Sharing
One doesn’t fit all!
Considerations

18. Does it make sense?
Considerations
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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.

19. Infrastructure Sharing
For a successful partnership
Recommendations

20. 25/07/2016 20
Share
more & more
Mott MacDonald | Infrastructure Sharing

21. 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
Mott MacDonald | Infrastructure Sharing

22. 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
Mott MacDonald | Infrastructure Sharing

23. 25/07/2016 23
Bora Varliyagci
Head of Digital Infrastructure
E bora.varliyagci@mottmac.com
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

24. Connect 2 Connect
Infrastructure Sharing
Thank you