Business / Companies
Govt to force telecom companies to share infrastructure
19 May 2013 at 10:02hrs | Views
GOVERNMENT is mooting a policy that forces telecommunication firms to share infrastructure in far reaching reforms set to remove the duplication in investments by operators.
The move comes at a time when government's calls for infrastructure sharing had been ignored by the operators, the Standard reported.
Speaking in Bulawayo last week, permanent secretary in the Ministry of Transport and Infrastructure Development, Munesu Munodawafa said the proposed legislation would help reduce costs and ultimately lead to low tariffs.
Munodawafa said the current licensing regime did not make it mandatory for infrastructure sharing and the new policy would give government the leeway to influence the direction of the investments and the development of that sector.
He said there must be "synergies in terms of having a national telecommunication backbone."
The transport permanent secretary said discussions were underway between the ministry and the industry that would encourage players to share certain basic backbone and infrastructure while at the same time allow them to compete on the last mile and actual services provision.
Telecoms operators are currently competing in setting up infrastructure across the country.
As a result, there is an over investment in some areas while others have remained neglected.
The move comes at a time when government's calls for infrastructure sharing had been ignored by the operators, the Standard reported.
Speaking in Bulawayo last week, permanent secretary in the Ministry of Transport and Infrastructure Development, Munesu Munodawafa said the proposed legislation would help reduce costs and ultimately lead to low tariffs.
Munodawafa said the current licensing regime did not make it mandatory for infrastructure sharing and the new policy would give government the leeway to influence the direction of the investments and the development of that sector.
He said there must be "synergies in terms of having a national telecommunication backbone."
The transport permanent secretary said discussions were underway between the ministry and the industry that would encourage players to share certain basic backbone and infrastructure while at the same time allow them to compete on the last mile and actual services provision.
Telecoms operators are currently competing in setting up infrastructure across the country.
As a result, there is an over investment in some areas while others have remained neglected.
Source - thestandard
