INFRASTRUCTURE SHARING IN TELECOM INDUSTRY: EMERGING BUSINESS MODELS & THEIR FINANCIAL INCENTIVES
Author: Shruti Bhardwaj
Category: General Management
Abstract:
The rationale of this paper is to study the growth and future prospects of the recent business model of infrastructure sharing in Indian telecom industry. It discusses the various forms of infrastructure sharing which include active, passive and backhaul sharing with reference to the varied accounting models implied for each of them, cost benefits to the telecom operators and also the financial incentives in form of fixed incentives and tax benefits given by the government and civil authorities to encourage these infrastructure sharing companies as they contribute towards environmental protection.
A study of the various passive infrastructure sharing companies in India is done in terms of challenges faced during initial set up, risks involved in leasing to clients, their financial growth and benefits availed by the telecom operators and service providers. A glimpse over the various mergers and acquisitions taking p\ace amongst the tower companies in India in past years is taken to understand the prospective trends. Conclusively it explores the scope and the expected benefits of yet to come up active infrastructure sharing in Indian telecom industry which is already mature in few countries abroad but is not being adopted by Indian telecom players yet.
