Telecom executives urge infrastructure sharing

Measures to encourage mobile companies to share network infrastructure for third-generation technology should be introduced in…

Measures to encourage mobile companies to share network infrastructure for third-generation technology should be introduced in the Republic, according to two senior telecoms executives.

This would speed up the rollout of third-generation mobile networks, keep call-costs down for customers and be a more environmentally friendly option, the executives said.

Mr Peter Quinn, chief operations officer at the third mobile licence holder Meteor, said sharing infrastructure would mean fewer mobile masts and less road digging.

He said infrastructure sharing should include backhaul capacity or fibre which companies use to carry traffic from base stations back to a company's switch.

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Although there is already some mast sharing in the Republic, sharing fibre has not been a feature of the domestic mobile landscape.

However, the issue is currently centre-stage in the debate over third-generation networks following the sale of licences across Europe which netted $130 billion (€151 billion) for governments.

Analysts estimate infrastructure sharing would enable mobile companies to save billions of pounds in network costs, or about 30-55 per cent in capital costs.

Infrastructure sharing was recently allowed by the German telecoms regulator RegTP which said it had no objections to sharing masts, antennas and radio base stations. This was on condition that companies used separate technology to maintain control over their own networks.

British Telecom and Deutsche Telekom recently agreed to share infrastructure costs for their German third-generation network roll-out. Deutsche estimates it should save about 30 per cent of capital expenditure, around €2 billion (£1.57 billion).

Mr Eoin O'Driscoll, senior vice-president and managing director of Lucent Ireland, said RegTP's decision could act as a model for the introduction of third-generation mobile networks in the Republic.

"The Irish regulator has already opted for a beauty contest approach in the awarding of the licences. This will help to keep the cost of Irish third-generation mobile licences within acceptable limits," he said.

"If this (beauty contest) approach is combined with a ruling by the regulator in favour of infrastructure sharing, the liftoff of third-generation mobile networks in Ireland could be influenced very positively."

Telecoms regulator, Ms Etain Doyle, is expected to rule on the issue when she issues the tender documents for the competition to award third-generation licences.

This process has been delayed for more than six months due to disagreements over the proposed costs of licences with the Minister for Finance, Mr McCreevy.

But sharing infrastructure would be far more beneficial to new operators, according to Mr David Gilligan, telecoms consultant with Mason Communications.

It would bring added competition to the market as less established entrants would build their third-generation networks quicker than without sharing, he said.

Mr Laurence McAuley, head of regulatory affairs at Eircell, said European legislation encouraged competition in infrastructure.

He said companies should be free to enter negotiations on sharing in areas where there was little point in building four separate infrastructures.