Government Greenlights 'Telecom Infrastructure Sharing Framework' to Transform Pakistan's Telecom Landscape
In a significant move, the government of Pakistan has given the nod to the Telecom Infrastructure Sharing Framework (TISF), a regulatory mechanism devised by the Pakistan Telecommunication Authority (PTA). This framework empowers licensees to share both active and passive telecom infrastructure in an equitable and competitive manner.
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The TISF, developed in collaboration with the Ministry of Information Technology and Telecommunication (MoIT&T) and the telecom industry, aims to address the substantial capital and operational expenditures associated with telecom network deployment, acting as a catalyst for increased mobile broadband accessibility.
According to the PTA, the approval of TISF marks a pivotal stride toward the growth and sustainability of the telecom sector in Pakistan. The framework is anticipated to yield significant reductions in the costs related to deploying (CapEx) and operating (OpEx) telecom networks, leading to lower prices and improved services for consumers.
The pressing need for telecom infrastructure sharing in Pakistan stems from factors such as escalating inflation, low Average Revenue Per User (ARPU), surging fuel prices, revenue challenges, substantial CapEx demands for 4G and 5G expansion, the need to connect remote areas, and cost-effective capacity growth for nationwide coverage.
Telecom Infrastructure Sharing is seen as a catalyst for introducing new services with broader coverage and an early Time to Market (TTM) for innovative products. The framework is expected to intensify competition among operators, focusing on service differentiation and enhancing customer experience by sharing part of the underlying network.
Outlined in the Telecom Policy 2015, infrastructure sharing (both passive and active) will adhere to regulations and guidelines established by the PTA, in consultation with the federal government, emphasizing principles of neutrality, non-discrimination, and equal access.
The framework also highlights the complexities involved in network sharing, emphasizing the need for careful planning based on extensive deliberations. Key limitations, risks, and challenges include strategic lock-in, complex merger/divestment processes, high termination costs, loss of control and independence, competitive disadvantages, and complex governance and regulatory scrutiny.
Additionally, the TISF notes that a Telecom Tower Provider (TTP) licensee will be authorized for Distributed Antenna System (DAS) for IBS. The associated components include indoor antennas, jumpers, cabling (co-axial/fiber), connectors, taps/splitters, multiplexers, combiners, couplers, attenuators, grounding/earthing, and associated power equipment, with license fees structured based on geographical regions.
