Across many emerging markets today, there is a heightened focus on efficiency in spending as operators pursue strategies to achieve capex and opex savings in their operations. For emerging market operators, many of whom are in the process of further network rollout; rural expansion and its associated higher capex per erlang is forcing through alternative solutions to keep down their costs per minute. Tower spin-offs and leasing from independent third-party tower companies is one such option, increasingly making the headlines. This form of network sharing not only limits the absolute cost of coverage in rural areas but also improves the economics enough to make it viable.
Devine Kofiloto is a consultant with Deccocon, an independent consulting business focused on emerging markets