8/2/2019 MIA PPT

1/16

TELECOM TOWER PROVIDER

Group - 8

8/2/2019 MIA PPT

2/16

8/2/2019 MIA PPT

3/16

The tower industry is growing continuously with the active

support of the Government. During the early years, the mobileoperators were directly involved in the installation and

maintenance of the mobile towers.

The intense competition in the telecom industry forced all the

operators to look for opportunities to reduce the cost of

operations by outsourcing network related activities which

demand huge capital expenditure and operating expenditure.

While some companies created their own captive towercompanies, a few others pooled the towers and formed joint

ventures. In India even today operator owned tower companies

control more than 90% of the market share.

Telecom Tower Industry in India

8/2/2019 MIA PPT

4/16

The tower companies in India are of 3 types.

1. Tower companies formed through joint ventures like Indus

tower which is a joint venture by Airtel, Vodafone and Idea.

2. Tower companies formed though de-merger like Reliance

Infratel which is a wholly owned subsidiary of Rcom.

3. Independent tower companies (pure play operators) like

GTL etc.

Industry structure

8/2/2019 MIA PPT

5/16

8/2/2019 MIA PPT

6/16

Active Infrastructure or Electronic Infrastructure

include components like Spectrum (radio

frequency), base tower station, microwave radio

equipment, switches, antennas, transceivers for

signal processing and transmission, etc.

While the Indian tower companies have

streamlined the sharing of passive infrastructure,

they are yet to operationalize the sharing of activeinfrastructure.

Operations handled by a tower company

8/2/2019 MIA PPT

7/16

Ground based tower (GBT)

Erected on the ground with a height of 40 meters to 80 meters. Mostly installed in rural and semi-urban areas because of the easy

availability of land.

Roof-Top Tower (RTT) RTT is placed on the terrace of high-rise buildings particularly in

urban areas.

In cities like Mumbai and Delhi where the high rise buildings are

available, instead of towers poles are erected for installing antennas.

Types of Tower

8/2/2019 MIA PPT

8/16

8/2/2019 MIA PPT

9/16

8/2/2019 MIA PPT

10/16

Name of

Company

Revenue Infrastructure No of Towers

GTL Infra $ 74.30 Mn Passive Over 30,000

Indus$ 2 Billion Passive Over 110,000

Bharti

Infratel

- Passive Over 30,000

WTTIL

Quippo

$2.6 Billion Passive Over 18,000

Reliance Infratel - Passive Over 48,000

Competitors Analysis

8/2/2019 MIA PPT

11/16

STRENGTHS

Economies of scale

Increasing Telecom Subscriber baseEmergence of Solar power as a positivesource of energy

High growth rate

WEAKNESS

Regular Technological Innovations

Government RegulationsHuge Capital involved

OPPORTUNITIES

3G and beyond

Wireless Tower ExpansionData Services

Emerging Markets

Data Intensive Applications

Digital Media

THREAT

Increasing Pollution and Radiations

Entrance of Global Players

Risk of Technology Obsoletion andcontinuous need of up gradation

SWOTANALYSIS

8/2/2019 MIA PPT

12/16

POLITICAL

Protection & Environmental Laws

Tax lawsTrade Regulations

ECONOMICAL

GDP Trends

Interest Rates

Price Control

Cost

SOCIAL

Land Acquisition for tower setup

TECHNOLOGICALNew products

Emerging technology

PESTANALYSIS

8/2/2019 MIA PPT

13/16

Through joint ventures

Merger

Independent tower company

Modes of Entry

8/2/2019 MIA PPT

14/16

Tower Industry in India is on the path of mergers and

consolidation. Some of the significant acquisitions during

the recent period are:-

WTTIL acquisition ofTTMLs 2500 towers for a value ofRs 5.2 million (US $ 115,000) per tower.

GTLs acquisition of Aircel 17500 towers in a cash

transfer worth Rs 8400 cr ((US $ 1.87 billion)

ATCs acquisition of Essar Telecom infrastructures 4450towers and 325 towers of Transcend infrastructure.

Mergers and acquisitions in Tower industry

8/2/2019 MIA PPT

15/16

8/2/2019 MIA PPT

16/16

Thank you