3. Benefits
Sharing of infrastructure can lead to several benefits. Operators resorting to
infrastructure sharing would reduce their payback time significantly by reducing
both their operating expenditures and capital expenditures.
Infrastructure sharing can be used in both the start-up phase to build coverage
quickly and longer term, and to build more cost effective coverage in rural areas.
Sharing arrangement provides the highest savings in cases of low traffic demand and
more efficiency is achieved by pooling resources.
For new telecom companies such infrastructure sharing will mean not just faster rollout
but also savings in billions of Peso’s. To set up every telecom towers the cost ranges
between Php 1.5 to Php 4.0 million
5. Sharing can be broadly classified into 2 groups
Passive Infrastructure sharing
Active Elements
Passive Infrastructure sharing (tower sharing) : Passive infrastructure being one of the
most important components of a mobile network, the same has been a critical area
of operations for telecom companies in the past. With increasing competition
posing an urgent need for telecom companies to expand their coverage and sharpen
their focus on core operation.
Active Elements: Two or more operators deploy a completely shared radio network and
in some case, a partly shared core network. The shared radio network consist of Radio
base station, Radio network controllers, Transmissions. Active sharing is not allowed
by regulations
18. Key benefits relating to the tower sharing :
• Greenfield tower sites requires a capital expenditures of Php 1.5 to Php 4m.
Given the high capital investments required in the business, tower sharing
are highly leveraged.
• Stable and predictable cash flow. Once a tower asset is rented out, it usually
generates a stable and predictable cash flow of tower rentals.
• Tower operating expenses can be shared, such as site rentals, O&M expenses,
and energy and fuel expenses
• Enhancement of profitability. Tower sharing can help operators lower their operating
cost and capital expenditures and earn better margins.
• Shorter and faster Roll out time
19. Construction Cost
Greenfield SST MD Sites
30m Tower 36m Tower 45m Tower 53m Tower 65m Tower 71m Tower
Construction plan & As-built drawings 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00
Site Design
GF OD SST MD 458,918.91 513,055.91 690,068.06 946,149.75 1,137,130.15 1,477,529.82
Foundation and Earth Work
Masts, Towers and Monopole Work
Equipment Stand and Housing Work
Electric and Mechanical Systems Work
SST MD 30m, material 275,875.37 348,468.60 467,770.58 707,096.13 1,132,826.89 1,229,596.13
Masts, Towers and Monopoles
Electrical and Mech. Systems-Material
ME Outdoor 59,669.58 59,669.58 59,669.58 71,794.58 71,794.58 71,794.58
Site Preparation
Masts, Towers and Monopoles
Electrical and Mech. Systems-Material
Base frame2/3G(WF200x100-L4900m) 43,565.08 43,565.08 43,565.08 43,565.08 43,565.08 43,565.08
Equipment Stands and Housings-Material
Transp. cost for CME Kitting 14,132.26 14,132.26 14,132.26 30,179.82 39,874.13 95,208.93
Transportation
Fence & Yard 146,845.85 146,845.85 155,901.87 180,845.66 166,128.13 184,652.50
Site Preparation
Transp. Tower materials 19,691.06 24,921.74 33,518.01 76,062.03 110,774.18 322,362.97
Tower Transportation
Power Connection 170,000.00 170,000.00 170,000.00 170,000.00 170,000.00 170,000.00
Electrical and Mechanical System Work
Amount 1,202,698.09 1,334,659.01 1,648,625.42 2,239,693.05 2,886,093.13 3,608,709.98
Site Acquisition / Permits 350,000.00 350,000.00 350,000.00 350,000.00 350,000.00 350,000.00
Permits : Pre-Con to Post-Construction
Total Cost PHP 1,552,698.09 PHP 1,684,659.01 PHP 1,998,625.42 PHP 2,589,693.05 PHP 3,236,093.13 PHP 3,958,709.98
22. Conclusion:
• Sharing of infrastructure reduces significantly the capital expenditures of
every mobile operators, and provides faster rate in terms of roll out activities.
•The concept will provide savings on operational expenses.
•Tower sharing is a viable alternative in rural areas, and for the purpose of
road coverage.
23. References :
Growth Opportunities in the Philippines, Frost & Sullivan Press Release 2009
Philippines Telecom Brief, Ken Zita
Trends of Technological Innovation style in the Philippine Mobile
Telecommunication Industry
Philippine Economic Growth: Can it last? , Emmanuel S. De Dios