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3 benefits of infrastructure sharing and 2 drawbacks

Author: Vicky Kumar
by Vicky Kumar
Posted: Sep 17, 2020
infrastructure shari

Starting a call center is a pricey affair. That’s why, people find ways to somehow mitigate the large costs of hardware by telecom infrastructure sharing. However, when you look deeper, you realize that the benefits of sharing the resources extend beyond cost savings.

When you indulge in sharing infrastructure, you extend the reach of your resource to regions that weren’t able to access before. This reason brings rise to other benefits. In this article, we are going to reveal to you the 3 benefits of infrastructure sharing and 3 drawbacks of the same.

What is Infrastructure sharing?

One thing that sets the IT enabled service providers (OSPs, call centers, BPOs etc) apart from others is their need of vast hardware and software resources. That need increases the cost of doing business. As a result, some IT companies find it had to achieve a sustainable growth. Thus, Department of Telecommunication allows these to share resources via the license known as Infrastructure Sharing license.

To get this license, the OSPs have to enter into agreement highlighting the resources that they are planning on sharing with each other. The agreement is then submitted to the Department of Telecommunication. After assessing the agreement, the DOT approves it. It allows the OSPs to share resources.

The general condition of sharing resources are as follows:

  1. You have to get the approval of DOT prior to sharing infrastructure.
  2. The domestic and international OSPs between which the infrastructure is supposed to be shared is are supposed to belong to the same company
  3. Both OSPs should have at least 50 calling employees.
  4. If the OSPs are found to be doing anything illegal, the DOT can cancel your license.
  5. There should be no interconnectivity between your call centers.
What are the infrastructures you can share through telecom infrastructure sharing?

Following are the infrastructures that you can share by getting the telecom infrastructure sharing license:

  1. Passive Infrastructure: Passive Infrastructure sharing means sharing non-electronic resources of the OSPs. Believe it or not, the scale of these resources make them expensive. It’s not limited to OSPs, passive infrastructure sharing in telecommunications allows telecom companies to share their resources as well.
  2. Active Infrastructure: Active Resources consist of sharing of electronic resources.
  3. Spectrum Sharing
  4. Base Station Sharing
  5. Routers and MSC Sharing
  6. Network Sharing
  7. Geographical Splitting

Note: the rest are part of the active and passive infrastructure sharing.

What’s the point of sharing the resources? How can they beneficial to you?

3 main Benefits of infrastructure sharing

Following are the benefits of Infrastructure sharing:

  1. You can save money on resources: Call centers resources are pricey and by sharing those resources, you can save a lot of money.
  2. You can expand your business: By sharing infrastructure between domestic and international call centre, you give yourself a way to expand your business.
  3. You can achieve centralized control: As the operator of the shared infrastructure can be the same, you can achieve full control over your international and domestic call center operations.

That being said, not everything this fine and dandy in the land of sharing resources.

2 drawbacks of infrastructure sharing

Where there is heads, there is also tails. Here are the 2 drawbacks of sharing infrastructure

  1. High fee: Investing in infrastructure is the same as buying a 5 star Air Conditioner; it costs a lot although it saves money later. The high costs are definitely a big issue for many OSPs.
  2. Small validity period: Infrastructure sharing license is only valid for three years. After that, you’d have to repay the high fee to re-draft and re-submit the infrastructure license agreement.
Conclusion

Infrastructure sharing allows you to achieve a lot, however, it costs a lot too. While you can ponder whether the high price and small validity is worth getting the license, you should always look towards what you consider best for your business. If you’re still confused about getting the license, consult with our experts.

About the Author

Vicky kumar is a company analyst in IP1 License.

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Author: Vicky Kumar

Vicky Kumar

Member since: Aug 19, 2020
Published articles: 32

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