“Site sharing and cost optimization in telecom industry”, a case study of Rwanda

Abstract

This research work investigates the impact of site sharing on cost optimization in the Rwanda Telecom Industry. It had the specific objectives of identifying factors which push telecom companies into site sharing, assessing the variation of cost optimization before and after site sharing in the telecom industry and establishing the relationship between site sharing and cost optimization with an aim of enhancing this practice for better results in the telecom industry. The study design was largely qualitative but incorporating some degree of quantitative approaches in nature and employed questionnaires in collecting data. The findings showed that site sharing has impacted on cost optimization in the telecom industry by reducing Opex to levels which go over 50 percent, improved geographical area coverage and given rise to innovations that have improved on service delivery of the telephone companies to their respective customers. The study recommends the site controlling body, IHS Company and the regulatory authority, RURA, to reduce on the cost they charge for renting these sites as in line with the principle of economies of scale. If applied, the effect will further trickle down to the subscribers because the telephone companies will similarly reduce on the fees they charge subscribers to access their networks. As a result, telecom services will become more affordable and this will increase the number of subscribers.