1. Unlocking Broadband for All: Introduction to Infrastructure Sharing The Key Opportunities and Benefits SADC-CRASA Stakeholder Validation Workshop May 20-21 2015 Capital 20 West, Sandton, Johannesburg, South Africa Association for Progressive Communications (APC)

2. Key Network Infrastructure Priorities (1) Optic fibre links between neighboring countries – at least two physically independent links are required for reliability and competitive pricing International submarine cable landings – access to at least two or more independent submarine cable landings are required for reliability and low pricing Competitively priced and reliable national backbones (often also provides cross-border links)

3. Key Network Infrastructure Priorities (2) Middle-mile fibre infrastructure reaching smaller population centres High capacity links from wireless base stations to backhaul (increasingly fibre) Affordable choices in fixed and mobile retail broadband providers for end-users Efficient low-cost interconnection, including between IP networks, and between IP and public voice networks (mobile and fixed) I.e: IXPs, DIDs, voice network interconnection

4. Key Network Infrastructure Challenges Expensive international, national and last-mile access & limited coverage of networks due to: Duplication of infrastructure => high overall finance needs, slower time to market Low levels of competition Low ICT skills and awareness of new technology options Low income levels and economies of scale High network costs (import duties, taxes, power, license fees) Limited financing due to low returns on investment, high risks (perceived or real), unclear or changing policy environments

5. Network Infrastructure and Institutional Frameworks (1) ISO Layers 1-4: Lit Fibre Cables Copper cables Radios & Satellites Switches & Routers Servers & Storage Numbering and IP addresses/ASNs Interconnection between networks Direct Stakeholders: Government – policy makers and regulators Telecom Operators – fixed, mobile, satellite Internet Access Providers Data Centre Operators Exchange Points (IXPs) Content providers Civil Society & Consumer Associations

6. Network Infrastructure: Passive / Linear/ Utility Infrastructure Land & Rights of Way (ROW) Ducts and Dark Fibre Sites, Masts & Poles Radio Spectrum Satellite Orbital slots Energy, AirCon & Housing Primary stakeholders: Governments & Regulators Land Owners Dark Fibre & Mast Operators Utility Infrastructure Operators: Rail, Energy, Roads, Water, Waste Various national and local authorities, and parastatals People living/working in close proximity to facilities Cost effective access to passive/utility infrastructure is vital to affordable broadband, but is often given less attention in policy development

7. Major Benefits of Infrastructure Sharing Source: APC/Deloitte Study 2015

8. Scope & Ease of Infrastructure Sharing Source: APC/Deloitte Study 2015

9. Mast Sharing Among the most common forms of infrastructure sharing – especially for mobile operators High site establishment costs and environmental impact restrictions encourage may voluntary site sharing Absence of grid power and the high capex of solar or high operational costs of diesel fueled base stations also encourages sharing Operators may implement this through rental agreements, site/mast swaps, or by outsourcing to third party independent tower operators Universal service funded towers are usually required to be shared

10. Mobile network sharing can go beyond masts Source: Vodafone Across a network of 10,000 sites costing about $80K/site, a two-way mast sharing agreement could save operator $365m/yr Source: Deloitte

11. Fibre Network Sharing Retail Telecommunication Services Active Services Passive Telecommunication Services Roads, buildings, etc Wholesale Active Network providing structured transmission capacity Retail service for residential and business Dark Fibre, Power Air Con, Tubes, Ducts, Room, Trenches Rights of Way ExamplesProject Link Kampala Many Govt Backbones Parkhurst Community FibreDark Fibre AfricaMost Metro Networks Source: NSRC

13. Duct Sharing In fibre deployment 70-80% of the cost is in the civil works for the ducting – if this can be shared, the savings are substantial - $16m per operator saved for a 1000km of fibre shared by three operators A variety of models: Highway authority as duct operator Outsourced independent private duct operator (concession) Telco shares ducts with other operators

14. Rights of Way Gaining access to rights of way (ROW) can be highly costly and time-consuming Massive savings can be made by implementing dig once policies requiring operators to share civil works, and requiring all new transport or energy infrastructure to include ducts - Coordinating network roll-out with road construction is estimated to add only 0.9-2% to the total cost of the road (Deloitte) Often seen as a revenue stream by the ROW owner Image source: Kictanet

15. Local Loop Sharing FTTx Facilities Competition Unbundled Network Elements Open Access

16. Passive infrastructure sharing requirements Making sharing a condition of financing Telco infrastructure sharing requirements as part of Interconnection and Collocation rules Regulations to allow any operator the right to request sharing from another – fibre & masts Ensuring new fibre and mast buildouts comply with standards to support sharing E.g universal service fund requirements but could be could apply to all new buildouts, need for common standards Key Policy Issues for Infrastructure Sharing (1)

17. In-building planning requirements Ensuring ducts are in all new public buildings and housing estates Supporting active infrastructure sharing – wholesale & retail Wholesale fibre (including open access l anding stations and 4G networks (govt, private, PPPs), Mobile Roaming, MVNOs Duct sharing policies & dig-once land-use planning rules Public Works Policies, Communication regulator policies requiring first operator to dig to make sufficient space available for other operators Key Policy Issues for Infrastructure Sharing (2)

18. Limit cost and procedures for rights of way Pole, municipal ROW and premises mast site rental price caps Simplified cross-border digging procedures One stop shops for permitting Supporting infrastructure buildout co-ordination Multi-sectoral infrastructure databases and GIS Key Policy Issues for Infrastructure Sharing (3)

19. Thank you! Association for Progressive Communications http://www.apc.org access@apc.org