TowerXchange’s analysis of the global and European tower markets today and tomorrow
Kieron Osmotherly, Founder and CEO, TowerXchangeFrances Rose, Head of Europe, TowerXchange
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Networking club for towercosMeetups, CXO dinners, must-read-journal, 2.5 million words of research, who’s whos
Meetup Americas 2018 20-21 June, Boca Raton
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Meetup Europe 2019 30 April - 1 May, London
The new market structure in which towercos own 67.4% of towers
TowerXchange is tracking 279 towercos that now own 2.966mn of the world’s 4.4mn towers
China Tower Corporation*1,900,000
29 other towercos with 5,000-20,000 towers286,590
235+** other towercos with
Towerco penetration and business models in different regions
Global
52.6%
13.5%1.3%
32.6%
Operator-led towerco Pureplay independent towerco Joint venture infraco MNO-captive sites
China
India
CALA Oceania
S & SE Asia(Exc India)
Europe
N & E Asia(exc China)
97.3% 2.7%
15.4%
15.5%
9.6%
59.6%46.6%
21.8%
31.5%
14.7%66.1%
19.2%100%
11%
36.1%48.2%
13%
87%
USA & Canada
7%
66%
27%
15.6%
SSAMENA99.5%
0.01%0.04%
4.6%59.2%
36.2%
Operator-led towerco Pureplay independent towerco Joint venture infraco MNO-captive sites
China
India
CALA Oceania
S & SE Asia(Exc India)
Europe
N & E Asia(exc China)
97.3% 2.7%
19%
10%
40%47%
22%
32%
20%66%
14%
100%
11%
40%49%
8%
92%
USA & Canada
7%
66%
27%11%
SSAMENA99.99%
0.01%0.2%
61%
39%
Tower industry 1.0: Vertical real estate
Tower cash flowTowers
Rooftops
Passive infrastructure
Power-as-a-service
Amendments
Escalators
Accelerated rollouts
Build-to-suitTenancy ratio growth
Long-term contracts
Operational excellence
Real estate
Operational excellence
Monetise assets
Service Level Agreements
Master Lease Agreements
Credit worthy tenants Sale and leaseback
Credit worthy tenants
Sale and leaseback
REITs
Valuation
Improvement capex
Site level profitability
Permitting
Zoning
Pass-through
Anchor tenants
DAS
The Future Network: new business models for geographic coverage and urban capacity
An era when networks are dynamically, remotely configurable, rather than optimised by site visits and new equipment overlays
InnovationFixed / mobile convergence
In Building Solutions
MESH networks
Small cells
Airborne connectivity
Virtualisation
Software Defined Networks
Self Optimising NetworksSingle platform
IoT
Industry verticals
OrchestrationEdge data centres
End to end network slicing
C-RAN
Multi-host
Smart poles
Fronthaul
Massive MIMO
Multi-band antennas5G rollout
Self-deployVR and AR
Street furniture
Neutral host
Street furniturePublic safety networks
NFV
Multi-operator
The structure of the European tower industry today
Deutsche Funkturm34,700
Cellnex27,044
First Tower Company15,500
CTIL12,000
40 towercos with
SLB in Europe
Year Country Seller Buyer Tower count Deal value € Cost per tower € Deal structure
2017 Italy Wind (Veon) Cellnex * 77,000,000 104,054 SLB 10% stake out
2017 Spain MasMovil Cellnex 551 40,000,000 72,595 SLB
2017 Switzerland Sunrise Cellnex, Swiss Life and DTCP 2,339 430,000,000 183,839 SLB
2017 France Bouygues Cellnex 3,000 854,000,000 284,666 SLB
2017 France Bouygues Cellnex 600 170,000,000 283,333 SLB
2016 France Bouygues Telecom Cellnex 230 80,000,000 347,826 SLB2016 France Bouygues Telecom Cellnex 270 67,000,000 248,148 SLB
2016 Ukraine Lifecell UkrTower 811 47,820,000 58,964 SLB
2015 Italy Wind (Veon) Cellnex 7,377 693,000,000 94,892 SLB with 10% equity
2014 Spain Telefonica/Yoigo Cellnex 4,277 385,000,000 90,016 SLB
2012 France Bouygues Telecom FPS Towers 2,166 185,000,000 100,400 SLB with 15% equity
2012 Germany KPN American Tower 2,031 393,000,000 193,501 SLB
2012 Netherlands KPN Protelindo 261 75,000,000 287,356 SLB
2012 Netherlands KPN Shere Group 460 115,000,000 250,000 SLB2012 Spain Telefonica Cellnex 500 45,000,000 90,000 SLB
2010 Netherlands KPN Open Tower Company 500 SLB
2008 Netherlands KPN Open Tower Company 101 SLB
Totals / average 25,474 3,656,820,000 147,019
Cellnex presence in Europe
588 Sites
796 Sites
5,400 Sites c.2,839 Sites
9,411 Sites8,133 Sites
Europe123456
13,000Russian Towers, Vertical
and Service Telecom
3,000
3,000
3,500Logycom
2,200
7400UkrTOWER
5,300Cellnex, TDF and American Tower
1,6003,000
3,000
2,000
1,800TT Networks
Hotspots for future SLB activity
Processes cancelled
SLB completed
Processes believed to be underway
Europe
103,206 European towers carved out by MNOs
365,424
72,770
58,600
103,206
Operator-led towerco Pureplay independent towerco Joint venture infraco MNO-captive sites
China
India
CALA Oceania
S & SE Asia(Exc India)
Europe
N & E Asia(exc China)
97.3% 2.7%
19%
10%
40%47%
22%
32%
20%66%
14%
100%
11%
40%49%
8%
92%
USA & Canada
7%
66%
27%11%
SSAMENA99.99%
0.01%0.2%
61%
39%
CETIN
< O2 Czech Republic achieved 126% increase in valuation by spinning
off infraco CETIN
< All infrastructure assets, fixed, mobile, 6,000 sites, 38,000km of fibre
< Freeing O2 management to focus on core business
Tower consolidation
Year Country Seller Buyer Tower count Deal value € Cost per tower € Deal structure
2018 Finland Digita Digital Colony 556 Company acquisition
2017 Netherlands Mom and Pop Cellnex 32 12,000,000 375,000 Company acquisition
2017 Russia Link Development Service Telecom 400 Company acquisition
2017 Netherlands Alticom Cellnex 30 133,000,000 443,333 Company acquisition
2016 France ITAS TIM TDF 420 Company acquisition
2016 Germany WDR American Tower Portfolio acquisition
2016 France Antin/FPS American Tower 2,482 697,000,000 280,821 Company acquisition
2016 UK & Netherlands Shere Group Cellnex 1,004 393,000,000 391,434 Company acquisition
2016 Netherlands Protelindo Cellnex 261 109,000,000 417,624 Company acquisition
2015 Ireland Coillte Cignal 113 Portfolio acquisition
2015 Italy Tecnorad EI Towers 134 17,000,000 126,866 Portfolio acquisition
2015 Italy TowerCo Cellnex 212 94,600,000 446,226 Company acquisition
Totals / average 5,604 1,455,600,000 322,392
Europe heatmap
123456
Europe heatmap
123456
Europe tower counts by country
Source: TowerXchange
Russia60,850
Germany70,136
Spain49,000
France47,347
Italy47,218
UK38,500
Kazakh- stan15,400
Netherlands15,204
Poland22,000
CzechRepublic10,200
Finland9,576
Ukraine21,600
Greece12,000
Portugal11,500
Sweden8,090
Norway7,035
Denmark4,105
Ireland4,000
Georgia 3,000
Lithuania1,226
Latvia879
Armenia 2,200
Estonia530