Shared infrastructure reduces costs in telecomms sector

23 Nov, 2014 - 00:11 0 Views
Shared infrastructure reduces costs in  telecomms sector

The Sunday News

mboweni

Mr Mboweni

Business Reporter
SHARING infrastructure among mobile telephone companies can only work if all the players in the sector contribute equally in the setting up of the infrastructure, Econet chief executive Mr Douglas Mboweni has said. Telecommunication companies in Zimbabwe are setting up separate infrastructure leading to high investment costs which are passed on to consumers.

In an interview with Sunday Business in Bulawayo last week Mr Mboweni said Econet was willing to share infrastructure with other players in the sector on condition that they equally contribute in the setting up of the infrastructure.

“We have been proponents of sharing infrastructure but not at the expense of one individual. We have said when we share infrastructure, let’s do it one for one. I build in Gokwe and you do the same in Binga and we use the infrastructure. But if you say you build the entire infrastructure and we want to come, that will not be fair and sustainable business,” he said.

Players in the sector have always advocated for combined investment among the companies as a way of reducing cost.

Computer Society of Zimbabwe president Gilford Hapanyengwi said either Government had to regulate the issue of infrastructure sharing or provide funding for the expansion then allow the companies to use that infrastructure.

Consumer Council of Zimbabwe Matabeleland regional officer Mr Comfort Muchekeza said failure to share infrastructure had resulted in duplication of communication infrastructure resulting in high investment costs in network infrastructure such as base stations.

“What we are saying is that in the mobile sector you find Econet putting its structures, Telecel putting a similar structure and NetOne doing the same but they don’t benefit from those structures and they only benefit from the dishes which are installed,” said Mr Muchekeza.

“If they were to install one structure, then each one will come and put their dishes there and reduce the costs. Every cost which they incur in installing those structures is passed on to the consumer.”

Mr Muchekeza said besides reducing the costs to the consumers, sharing of infrastructure would also reduce environmental damage.

“It will reduce the costs on the consumer and even on the environmental damage where you find at one place there are three structures which are put when one can just be shared.”

He said the telecommunication operators should take a leaf from financial institutions that share services.

“We are advocating for a situation like ZimSwitch where all banks came up with a system and where one can withdraw money as long as your bank is part of the platform.”

 

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