By Carl Selasie AMEKUDZI
I vividly remember the telecom boom in Ghana during the early 2000s. Network service providers rushed to expand coverage in the metropolis and municipalities, and with that came an influx of towers and masts springing up across the country. This typical network architecture adopted by telecom companies meant that these service providers built and owned their infrastructure, including the towers and masts, power supply, site premises, backhaul, and indoor equipment rooms.
This technological evolution was truly impressive and very welcome for Ghana, which was in the prime of its industrialization. “In the telecommunications sector, there has been more than a 200 percent increase in the number of telecommunication services”—The Budget Statement and Economic Policy of the Government of Ghana for the 2000 Financial Year. However, infrastructure sharing, a crucial strategic opportunity, was not fully leveraged and did not receive the attention merited.
The concept of “infrastructure sharing” in telecommunications involves multiple service providers collaborating to share both passive and active network infrastructure. This includes passive infrastructure such as towers, power systems, and fiber cores, as well as active components like backhaul transmission bandwidth and Lambda on Dense Wavelength Division Multiplexing (DWDM) systems.
Telecom companies have long employed this strategy primarily to enhance their telecom offerings, quickly penetrate new markets, and reduce costs while boosting productivity.
Ready, Set, Share, Go…
I experienced firsthand the effectiveness of infrastructure sharing agreements during my time with Safaricom Telecommunications Ethiopia PLC in 2021. The company’s license to operate as the second telecom network and first private sector-led operator in Ethiopia was granted in July 2021 by the Government of Ethiopia (GoE) through the Global Partnership for Ethiopia (GPE) consortium in a Public-Private Partnership (PPP) arrangement. The network deployment at the time was one of the largest greenfield network buildouts to go from project preparation to launch in a little over one year. This ramp-up in project development demonstrated the effectiveness of infrastructure sharing.
The perfect case study of a missed opportunity to explore shared infrastructure in the Ghanaian ecosystem is the entrance of Glo as the last major player into the telecommunications market during the telecom boom. On entry, Glo did not leverage the extensive infrastructure already established by major companies like MTN and Vodafone (now Telecel); the company opted to construct over 1,500 base station transceivers nationwide.
This choice significantly increased their deployment costs, led to duplicated efforts, and delayed their network launch because constructing and commissioning new sites took much longer than expected. To make matters worse, Glo ended up facing a fine of USD $200,000.00 from the National Communications Authority (NCA) due to missed rollout deadlines and failing to meet performance targets. Adopting infrastructure sharing from the beginning would have prevented many of these issues.
According to an article by the ITU, infrastructure sharing best practices significantly reduce costs for telecommunications providers. Sharing passive infrastructure is estimated to save up to 30%, while active infrastructure sharing can achieve cost reductions of 50% to 60%. These cost reductions for Glo might have resulted in Ghanaian consumers paying lower rates for goods and services.
Collaboration: together we build
As cliché as John C. Maxwell’s “Teamwork makes the dream work” sounds, networks, just like dreams, thrive from collaborations. For infrastructure sharing collaborations to work, operators typically enter into Infrastructure Sharing Agreements (ISAs).
These agreements outline the terms of usage and include Service Level Agreements (SLAs) to ensure optimal performance. If a party fails to meet the conditions of these SLAs, penalties known as service credits are applied to maintain accountability.
Let’s circle back to Ghana; over the years, we have seen positive advancements in tower and power sharing, largely thanks to companies like American Tower Corporation (ATC) and Helios Towers. According to the National Communications Authority (NCA) communication industry report, these companies managed a total of 5,310 towers by 2022. Out of these, ATC owns 4,196 (approximately 79%), and Helios Towers owns 1,114.
This collaboration has fostered growth, market penetration, and market expansion for network providers who can obtain approvals through infrastructure sharing agreements, thereby minimizing redundant infrastructure and ultimately improving mobile coverage. This impact essentially highlights the achievement of Sustainable Development Goals 8 and 9, which promote sustainable economic growth and create economic opportunities, while improving standards of living through increased access to affordable information and communication technology.
However, when it comes to the rollout of fiber networks for both backhaul and access (like Fiber to the Home), we are repeating some past mistakes. Major providers are laying down overlapping fiber networks in urban areas, resulting in competition rather than collaboration. This approach is not only costly but also unsustainable in the long run. To ensure a more efficient and effective expansion of fiber infrastructure, providers must work together rather than compete in the same spaces.
Regulation and the call for change
What can we do differently? Although some wholesale fiber providers, such as VOBISS and Spectrum Fiber, have emerged, many telcos had already laid extensive infrastructure before they arrived. But it’s not too late to change direction. Ghana can adopt a model similar to tower sharing by:
- Mandating that new deployments steer clear of duplicating existing fiber networks where there’s available capacity, reducing overlaps, especially in urban areas.
- Encouraging regulators like the NCA to invest more in national fiber assets and lease them under fair, open-access terms.
- Enforcing SLAs between telcos and infrastructure owners to guarantee performance and accountability, addressing issues like fiber cuts.
- Empowering third-party wholesale providers to own and manage fiber infrastructure, ensuring equitable access.
As we look to the future, embracing greater infrastructure sharing will not only reduce capital expenditure (CAPEX) but will also lead to more affordable broadband and mobile services, quicker expansion into underserved areas, and a stronger digital economy.
Infrastructure sharing can empower smaller operators, such as AT and Telecel, by providing access to existing infrastructure, particularly in the fiber sector, thereby enhancing their services and competitiveness. By enforcing fair Infrastructure Sharing Agreements (ISAs), we can ensure equitable access to infrastructure and level the playing field. Regulators have a crucial role to play in facilitating this shift, just as they did with the introduction of tower sharing.
The author is a Network Engineer experienced in building/managing telecommunications networks across Africa, passionate about bridging the digital divide through scalable, inclusive solutions for underserved areas.
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