An Other Service Provider is a service centre that uses enormous amount of telecom resources to provide IT enabled service. You can almost guess that because of this, starting an OSP, or a call center tends to be expensive. Thus, in order to mitigate its expensiveness, IT enabled service providers often come together, sharing their resources via the method called Infrastructure sharing.
But what is infrastructure sharing and how it can help you.
Infrastructure sharing isn’t just a term, it’s a legal authorization. That authorization is borne out of the agreement that two or more OSPs sign to share their resources for a finite or an infinite time being.
Here, infinite means till the end of the validity of the OSP registration.
By dividing the resources within themselves, the OSPs are able:
- Minimize the operating costs.
- Expand their business.
- Enter into a mutually beneficial agreement that aids both the parties.
In this article, I am going to shed light into how sharing infrastructure can provide such benefits. So, without further ado, let’s dive in.
INFRASTRUCTURE SHARING FOR REDUCING THE OPERATION COSTS
Sharing telecom resources often leads to cost reduction; it’s an obvious conclusion that literally anyone can get to. However, with infrastructure sharing, that benefit goes much deeper because of the resources that are shared. Such resources can be classified into the following:
- Passive Infrastructure Sharing: Telecom companies share non-electronic resources such as below when they are signing an agreement for passive infrastructure sharing:
- Site: Site sharing includes allocating the same antennas, mast, transceiver station, Node B, and common equipment such as Antenna systems, power source, and shelter to multiple telecom enterprises.
- Mast sharing alludes to allocating the same mast to multiple telecom companies.
- Antenna sharing means allocating antenna and the related connections like coupler and feeder cable to multiple telecom business entities.
- Active Infrastructure sharing: While sharing active infrastructure, IT enabled service providers get into an agreement to share electronic resources among them.
- Spectrum sharing: Also known as frequency sharing, spectrum sharing allows one operator to share a part of a spectrum with another for commercial purposes.
- Base Station Sharing: In this type of sharing, one operator maintains control over the Logic Node B (we don’t need to quibble about its details, yet). or a base station while allowing a partner to share some of the resources.
- Routers and MSC sharing it includes sharing of Routers and MSCs that are pretty much known as the backbone of telecommunications.
- Network sharing happens when a network is created for the sole purpose of sharing resources.
- Geographical splitting divides the region of subscribers among the service providers.
IT enabled service providers can save a lot of money sharing the aforementioned resources.
INFRASTRUCTURE SHARING FOR BUSINESS EXPANSION
If you are running an international and domestic OSP, you know that you have to get different registrations between the two. Other facts about possessing both the domestic and international service centers are as follows:
- You cannot share the resources between them without permission.
- The communication of one shouldn’t flow into another.
- You have to run your OSP business in a de-coupled fashion – where each OSP performs independently of another.
The above three factors, present the following two drawbacks:
- Resources are the biggest cost drivers in IT enabled service centres. Not being able to share the resources is therefore an unfavourable matter.
- Not being able to communicate and running the business in a decoupled fashion means that there is no way to expand the business.
Through infrastructure sharing, you can achieve expansion while also reducing the costs of the resources.
Here are the terms and conditions for your OSP to share infrastructure if you want expansion:
- Both the IT enabled service centres should belong to you. Unless you’re entering into a joint venture with some other company, you cannot share your infrastructure with them.
- There should be at least 50 seats in one OSP.
- Don’t violate the rules of infrastructure sharing. If you do, the DOT would have no qualms about cancelling your authorization.
INFRASTRUCTURE SHARING LEADS TO MUTUAL BENEFICIAL AGREEMENT BETWEEN BUSINESSES
Infrastructure sharing can’t happen without the agreement between the parties that want to share the resources. That brings us to the process of getting the authorization to share infrastructure. it’s as follows:
- Draft the application for Infrastructure sharing. It’s in the form of a legal agreement between your domestic and international OSP.
- Attach the required documents. Those documents would primarily entail:
- The ID proofs of the owners of the OSPs (Both would be you)
- OSP registration numbers of the individual OSPs
- Certificate of incorporation under which both of these OSPs operate.
- Memorandum of Association where you shall specify within the object of your company that you share infrastructure to do business worldwide.
- Submit the application and the required documents to the Department of Telecommunication.
- Wait while the Department scrutinizes your application.
- If DOT encounters errors in your agreement, you’ll be notified to make the corrections.
- If you make those changes in time, your application would be accepted.
- Once accepted, you earn the right to share resources to expand your business in a cost-effective manner.
Infrastructure sharing is a revolutionary move that allows IT enabled service providers to save money. Simultaneously, a company can expand its business by sharing resources among its domestic and international call centre. We can also give a better service in vno license. However, like everything world doing in this world, the task of sharing infrastructure is not easy. The legal process involved, combined with the technical details can make your head spin. You can hold on to your head if you consult with our DOT consultants.
We shall get you the right to share infrastructure to enhance your business.