The World Is Sharing Towers: Why Hasn’t Canada?

  • National Newswatch

While most of the world has moved to smarter, shared infrastructure, some countries are still left behind. Globally, independent TowerCos own 74% of towers, accelerating rollout, lowering costs, and turning passive assets into platforms for growth. Canada remains an outlier in this transition as 95% of towers are still operator-owned leading to suboptimal capital allocation, duplicated efforts, and delayed rural expansion. Canada is falling behind. 

In today’s world, infrastructure financing gaps are prevalent across countries. Driven by budget deficits and high debt levels, capital-intensive infrastructure requires smarter, more efficient resource allocation in order to maintain high quality service, strengthen resilience and ensure business continuity. Digital networks are no exception. A recent report by the International Telecommunications Union and other leading development financing institutions, estimate that bringing everyone in the world online by 2030 will cost $1.6 trillion. The bulk of that investment is needed for core infrastructure, including wireless, satellite, fixed broadband, data centres, undersea cables, Internet exchange points (IXPs), and towers. 

While these challenges are global, leading economies are already taking action. In Europe, the need for increased digital investment led the European Commission to introduce the Digital Networks Act to harmonize spectrum allocation, reduce fragmentation across markets, increase lease times and boost 6G investment. Another way to improve the efficiency of digital infrastructure investment is “de-duplication” through network sharing: an approach that reduces network capital expenditures for multiple operators. This practically means that operators decide to share some parts of their networks instead of covering every region or country with three or more similar networks. 

The benefits are substantial. A recent EY report showed that TowerCos average 2.4 tenants per site, nearly double the 1.3 tenants seen on operator-owned towers. This higher tenancy rate spreads costs, lowers prices, and improves rural economics, making each tower more efficient, more resilient, and more valuable to the public and private sectors alike.

One of the first comprehensive reviews of network sharing effects investigated mobile network sharing in Europe during the 2000-2019 period, including 140 mobile operators in 29 countries. In this paper, I found that network sharing generated significant benefits for operators and consumers, leading to lower prices for subscribers and improved network quality and coverage. The majority of these gains were driven by cost reductions, higher returns on investment, and increased competition. Notably, the benefits of each type of agreement varied across different types of sharing, technology cycles, and the market position and size of the operators. These findings underscore that network sharing can play a vital role in 5G deployment and that its success depends heavily on the technological and market specifics of each agreement.

These findings matter for countries left behind in tower sharing. Canada is a geographically vast market with low population density, dispersed settlements and high fixed costs of rural deployment. Yet the vast majority of towers remain under operator control, leaving potential efficiency gains untapped. This gap reflects missed opportunities and much needed efforts to lower costs and extend coverage, especially in rural and underserved areas.

Voluntary tower-sharing agreements in Canada, even within a limited scope, already demonstrate that collaboration can outperform duplication, delivering greater speed, coverage, and cost efficiency without compromising network quality or competition. But to scale this success, policy frameworks must evolve. 

First, it is crucial to recognize that TowerCo agreements are generally pro-competitive: in Europe there was only one case out of tens of agreements that the EU Commission held back by introducing remedies to protect the competitive landscape. Second, sharing agreements can help achieving important infrastructure outcomes in a holistic approach that acknowledges efficiency improvements through higher tenancy rates, rural build coordination, and long-term resilience

Network sharing is a catalyst, not a compromise. In countries defined by vast geographies and dispersed communities, smarter sharing is a clear path to faster, fairer, and more resilient connectivity. The future won’t be built by those who own the most towers, but by those who use them best

Dr. Pantelis Koutroumpis is the Director of the Programme of Technological and Economic Change at the Oxford Martin School at the University of Oxford. He has advised several bodies including the cost assessment and economic impact work of the Digital Agenda for Europe. Other assignments include the Department of Culture Media and Sport (UK), Ofcom, DG COMP, the European Investment Bank, the OECD, the World Bank, the ITU, and others.