MyAdhan Blog

Link: Infrastructure sharing: opportunities and threats for MENA telecom operators

Booz Allen Hamilton recently published a study highlighting the importance of infrastructure sharing as a strategy for new revenue generation and cost optimization for telecom operators in the Middle East and North Africa (MENA) region, at a time when traditional players and new entrants are under increasing pressure to maintain healthy profit margins.

The study also addresses the impact that infrastructure sharing can have on telecom sector development and how it can support the next wave of growth in the MENA telecom markets. ‘Infrastructure sharing can benefit fixed and mobile operators alike; while fixed operators are re-structuring to leverage the sharing model, as witnessed by the separation in the UK and more recently in Sweden - mobile operators are considered the sharing frontrunners,’ said Bahjat El-Darwiche, a Principal in the Communication and Technology Practice with Booz Allen Hamilton. As pressure mounts and markets maintain the growth pattern, operators should consider options to salvage profit levels, focusing on untapped revenues and cost optimization. ‘Infrastructure sharing is a form of cost optimization and can reduce capital expenditure components by as much as 40%,’ said Louay Abou Chanab, an Associate in the Communication and Technology Practice with Booz Allen Hamilton. ‘When looking at the case of two specific mobile operators in the MENA region, savings can mount to USD 250 million over a period of 3 years, should they decide to join forces in deploying their respective networks,’ added Abou Chanab.