The Indian Department of Telecommunication (DoT) has announced long-awaited proposals on infrastructure sharing based upon mutual agreements between mobile operators. Bharti Airtel, Vodafone and Tata Teleservices immediately welcomed the news, which will help significantly reduce operator Capex.

Prior to the ruling, operators had only been allowed to share passive infrastructure such as mobile towers, buildings and backup power facilities. The new directive will permit operators to share transmission systems, radio access networks and antennae, and a simplified approval process for building mobile towers.

The DoT said that independent companies would be able to build towers without tie-ups with telecoms operators, with technical permission being automatically granted for new towers except for those within seven kilometres of airports. “The guidelines are aimed at reducing the input costs on telecom access providers, together with lower tariffs and increased tele-density in rural areas.”

India’s leading mobile phone firm, Bharti Airtel, has said it would be open to sharing its entire infrastructure. Bharti Infratel, its tower unit, has about 20,000 towers and has a 42% stake in Indus Towers, a joint venture with Vodafone-controlled Vodafone Essar and Idea Cellular that has about 70,000 towers.