Foreign Investment

Telecom Infrastructure Sharing: Leasing Towers and Ducts

Engineer patching network cables — illustrating shared telecom infrastructure

Scenario: a new carrier wants fast coverage without capital for nationwide poles. The fix: lease power poles from the electricity sector and cable ducts from earlier carriers. Simple in theory — but telecom infrastructure leases are among the toughest contracts, touching both sides’ system safety.

The sharing principle: what does the law say?

Telecom Law 24/2023/QH15 establishes shared use of telecom infrastructure: carriers must share technical infrastructure (poles, stations, ducts, cable chambers, equipment rooms) upon request where technically feasible. This is a legal duty, not an appeal — unreasonable refusal to lease may be treated as restricting competition.

Common leased assets: power poles (for hanging fiber), underground cable ducts of earlier carriers, shared BTS poles/stations, equipment-room space.

Four backbone clauses of an infrastructure lease

  • Rent and adjustment: negotiated rents, usually per pole-meter/duct-meter/year or per site. Periodic adjustment mechanics and increase caps are essential — rent disputes are the top cause of infrastructure litigation.
  • Technical safety: pole loading, electrical safety clearances, cable-hanging work procedures — safety breaches can mean suspension and damages.
  • Maintenance and incident response: clear split of who maintains what, restoration timelines, and liability when the lessor’s infrastructure disrupts the lessee’s service.
  • Term and termination: terms tied to infrastructure planning; early-termination clauses, especially when the lessor must reclaim assets for grid upgrades or unsafe poles.

Leasing power poles: a special cross-sector relationship

Hanging telecom cables on power poles must simultaneously satisfy power-sector rules (grid safety, phase-to-ground clearances) and the grid operator’s agreement. Unauthorized or overloaded hanging causing incidents is the hanging party’s liability. Power-pole leases should annex approved hanging designs and safety acceptance records.

Frequently asked questions

1. Must a carrier lease infrastructure to rivals?

Under the 2023 Telecom Law’s sharing principle, carriers must share where technically feasible. Unreasonable refusal may draw competition scrutiny.

2. Who sets pole and duct rents?

The parties negotiate. Include periodic adjustment mechanics and increase caps — the most-litigated clause.

3. What does hanging fiber on power poles require?

A pole-lease contract with the power utility, hanging designs meeting loading and electrical-safety clearances, and compliant work and acceptance procedures. Unauthorized hanging violates the rules.

4. What if the lessor reclaims infrastructure early?

Follow the contract’s termination terms: advance notice, migration time, and compensation for unjustified reclamation. Safety-driven reclamation takes priority.

5. Where are infrastructure lease disputes resolved?

Contract negotiation first, then mediation, arbitration or litigation per the agreed dispute clause. Regulators may intervene in system-safety disputes.


This article has been quality-reviewed by the FLAW AI Legal Council.