August 06, 2010

Mobile Operators Sign MOU for Infrastructure Sharing

Representative of mobile operators and pta signing mou

Islamabad: Pakistan Telecommunication Authority (PTA) and Celluler Mobile Operators (CMOs) of Pakistan have signed Memorandum of Understanding (MoUs) on Infrastructure Sharing. MoUs will be valid for an initial term of three (3) years and may be extended with mutual consent of the parties, upon expiration of the initial term.

The MoUs signed by all 5 mobile operators aimed at revving up the current pace of Infrastructure Sharing amongst Cellular Mobile and WLL operators in the country and to increase the overall industry Tenancy Ratio to a reasonable mark. The parties anticipate that this co-operation will serve to support mutual interests, international best practices, the public convenience, improved aesthetics and decreased capital costs for rollout extensions.

According to the MoU, Parties agree that Standard Operating Procedure (SOP) on Infrastructure Sharing will be followed in letter and spirit subject to technical and commercial considerations. PTA will facilitate processing of Infrastructure Sharing cases to the extent possible within its jurisdiction. Each operator jointly with other industry players will put in its best efforts to make commercial arrangements interseand strive to take up its own and overall industry’s Tenancy Ratio to a level of 1.5 within next 3 years with yearly benchmarks aimed at 1.1, and 1.3 for first and second years respectively provided that the same is technically feasible for the operator(s).

It may be mentioned that Tenancy Ratio means number of operators sharing one tower. If a tower is used by more than one operator it would improve Tenancy Radio hence decreasing the number of towers installed across the country. Presently in Pakistan Tenancy Ratio is 1.02 which means out of every 100 towers only two are shared by operators. If the Ratio increases to 1.5 as expected it would mean that 50 out of every 100 towers are shared by operators.


Khurram Ali Mehran

Director PR