DoT allows telecom companies to share infrastructure, rules out sharing of spectrum

Department of Telecommunications (DoT), yesterday issued guidelines for active infrastructure sharing. The move will bring down the overall expenditure of telecom companies by over 50 per cent,  enabling them to cut costs in network roll-out and the consumers will benefit by way of cheaper tariffs.

However, DoT has also categorically stated that sharing of allocated spectrum will not be permitted.

The guidelines are not expected to affect foreign labels such as Virgin Mobile, because Tata Indicom, its local partner is only using the Virgin brand name while providing the services itself and paying a royalty linked to the subscriber base.

Until now, Indian telecom companies were permitted to share only passive infrastructure such as towers, repeaters, shelters and generators. Active infrastructure sharing will allow operators to use all key electronic components including antennas, feeder cables, nodes, radio access network and transmission systems.

Active infrastructure sharing can help operators save up to 50 to 60 per cent of the total rollout expenses