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World Global Toolkit on Cross-Sector Infrastructure Sharing

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World Global Toolkit on Cross-Sector Infrastructure Sharing Report No: AUS17854 . World Global Toolkit on Cross-Sector Infrastructure Sharing Module 8 of the Broadband Strategies Toolkit February 2017 . GTI11 OTHER . Document of the World Bank . Standard Disclaimer: . This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: . The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/ The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, http://www.copyright.com/. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. TOOLKIT ON CROSS-SECTOR INFRASTRUCTURE SHARING TO BE PUBLISHED AS MODULE 8 OF THE BROADBAND STRATEGIES TOOLKIT WWW.BROADBANDTOOLKIT.ORG M ACMILLAN K ECK A TTORNEYS & S OLICITORS Jerome Greene Hall 1120 Avenue of the Americas, 4th Floor 435 West 116th Street New York, NY 10036 USA New York, NY 10027 Tel: +1 212 626-6666 Phone: (212) 854-1830 Fax: +1 646 349-4989 Fax: (212) 854-7946 www.macmillankeck.pro ccsi.columbia.edu February 2017 Table of Contents Foreword ........................................................................................................................................................ iii Acknowledgements ........................................................................................................................................ iii About the authors and contributors to Module 8 ........................................................................................... v About the World Bank team ........................................................................................................................... vi 8 CROSS-SECTOR INFRASTRUCTURE SHARING ................................................................................ 1 8.1 Introduction ....................................................................................................................... 2 8.2 Executive summary ............................................................................................................ 5 8.3 The origins and development of cross-sector infrastructure sharing ................................... 13 8.3.1 The telegraph and railroads paved the way ................................................................ 13 8.3.2 The telephone followed by sharing road corridors and then utility poles .................. 17 8.3.3 Wireless ended telephone monopoly and reduced infrastructure sharing need ......... 24 8.3.4 Fiber renews need for infrastructure sharing in a competitive landscape .................. 28 8.4 Financial and other motivations ........................................................................................ 36 8.4.1 Motivations of broadband network operators ............................................................ 36 8.4.2 Motivations of infrastructure owners ......................................................................... 39 8.4.3 Motivations of lawmakers, policymakers and regulators ........................................... 41 8.5 Common business models ................................................................................................ 44 8.5.1 Joint planning and construction of infrastructure ....................................................... 44 8.5.2 Hosting third-party telecommunications facilities ..................................................... 45 8.5.3 Commercializing excess utility dark fiber.................................................................. 46 8.5.4 Utility joint venture with a third-party telecommunications operator ........................ 50 8.5.5 Utility provision of wholesale telecommunications services ..................................... 51 8.5.6 Providing co-location space, tower sites and ancillary services ................................ 52 8.6 Owner disincentives and impediments ............................................................................. 54 8.6.1 Suppression of financial incentives by utility ratemaking ......................................... 54 8.6.2 Suppression of financial incentives by infrastructure access regulation .................... 59 8.6.3 Institutional silos for infrastructure investment in developing countries ................... 63 8.6.4 Restrictions on activities of state actors and state-owned enterprises ........................ 65 8.6.5 Lack of resources to pursue infrastructure sharing .................................................... 70 8.7 Operator disincentives and impediments .......................................................................... 72 8.7.1 No clear path of engagement with infrastructure owners........................................... 72 8.7.2 Limitations on infrastructure owner’s land use rights ................................................ 73 8.7.3 Reliability of the operation and maintenance of the infrastructure ............................ 78 8.8 How policymakers, lawmakers and regulators can help ..................................................... 79 8.8.1 Remove financial disincentives via infrastructure owner’s sector regulator ............. 80 8.8.2 Ensure open, equal and efficient telecommunications access to corridors ................ 82 8.8.3 Tread carefully in regulating cross-sector joint use of facilities ................................ 87 8.8.4 Apply competition law principles to assess need for ex ante regulation ................... 91 8.8.5 Address regulatory restrictions that impede sharing by state utilities ........................ 93 8.8.6 Facilitate information exchange and dialogue ........................................................... 94 8.8.7 Tailor intervention to local conditions ....................................................................... 98 8.9 How international economic development institutions can help ...................................... 100 8.9.1 Encourage neutral and decentralized passive infrastructure ownership ................... 100 Cross-Sector Infrastructure Sharing Toolkit February 2017 Page i 8.9.2 Provide technical assistance to public sector stakeholders ...................................... 101 8.9.3 Plan for cross-sector sharing in all new infrastructure projects ............................... 105 8.10 Business and project case studies ................................................................................... 107 8.10.1 Lesotho Electricity Company ................................................................................... 107 8.10.2 RailTel (India) .......................................................................................................... 117 8.10.3 CEC Liquid Telecom (Zambia) ................................................................................ 123 8.10.4 Baltic Optical Network (Estonia) ............................................................................. 130 8.10.5 Kennedy Interchange (United States) ...................................................................... 133 8.10.6 Bombay Gas (India) ................................................................................................. 136 8.10.7 Electricity Supply Corporation of Malawi ............................................................... 138 8.10.8 Adif (Spain) .............................................................................................................. 140 8.10.9 Tokyo Metropolitan Government (Japan) ................................................................ 143 8.10.10 Ghana’s Electricity Transmission Line Fiber ................................................... 145 8.10.11 Tunisian Railways ............................................................................................ 151 8.10.12 SOGEM (Mali, Mauritania, Senegal) .............................................................. 154 8.10.13 Information Broadband Infrastructure System (Poland) .................................. 158 8.10.14 KOSTT (Kosovo) ............................................................................................. 160 8.10.15 Portugal’s Rapid Increase in Fiber Access ....................................................... 165 8.11 Country case studies ....................................................................................................... 169 8.11.1 Lithuania ................................................................................................................... 169 8.11.2 South Africa ............................................................................................................
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