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Financial and Other Motivations

Financial and other motivations to share infrastructure across sectors

All stakeholders including broadband network operators, infrastructure owners have strong financial and other motivations to share infrastructure across sectors. This module describes some of their primary motivations. The motivation of broadband network operators to access and use infrastructure built for other sectors is driven by the need for cost-effective upgrades of their networks to satisfy bandwidth demand growth which requires exponential increases in Internet throughput capacity. 

In addition, cross-sector infrastructure sharing provides significant benefits to infrastructure owners. It presents a strategic opportunity for utilities to monetize the latent value of existing infrastructure, including excess dark fiber. It offers public utilities the opportunity to reduce the external capital required to install or upgrade their communications networks. Policymakers, law-makers, and regulators often seek to intervene in the cross-sector infrastructure sharing market to increase the viability and efficiency of new broadband investments and to ensure effective competition in the provision of broadband services.

 


 

Reference and Resources:

1.“Ericsson Mobility Report: On the Pulse of the Networked Society.” Ericsson, June 2016. http://www.ericsson.com/res/docs/2016/ericsson-mobility-report-2016.pdf (last visited 8 Feb 2017).

2. “The State of Broadband 2016: Broadband catalyzing sustainable development.” Broadband Commission, September, 2016. http://broadbandcommission.org/Documents/reports/bb-annualreport2016.pdf (last visited 8 Feb 2017).

3. “The State of Broadband 2014: broadband for all.” Broadband Commission, September, 2014. http://www.broadbandcommission.org/documents/reports/bb-annualreport2014.pdf (last visited 8 Feb 2017).