Professional Documents
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August 2009
Executive Summary
Market
Estimated requirement of X,000 in 2008 and Y,000 by 2015 Projected growth rate of x% p.a. in 2008-2015 An estimated y% of towers are shared, which is expected to increase Telecom tower companies follow four types of business models:
Business models
Captive: Towers are owned & operated by telecom operators Operator Controlled: Operator consolidates tower infrastructure and hives it off as a separate company Pool and share: Operators jointly setup an independent company for sharing tower infrastructure Build and operate: Independent tower companies operate on a build-and operate model
Infrastructure sharing
Infrastructure sharing in India is currently limited to passive sharing Positive TRAI initiatives such as granting subsidies from its Universal Service Obligation Fund (USOF) encourage infrastructure sharing Estimates indicate significant improvement in profitability as tenancy ratio increases Indian telecom tower market includes:
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TELECOM TOWERS INDIA.PPT
Competition
Tower infrastructure companies, owned and controlled by telecom-operator companies like Company A, Company B, Company C Independent tower infrastructure companies
Company A is the leading player with x% market share New entrants include American Tower Corporation, Tower Vision
Introduction Market Overview Business Model Infrastructure Sharing Competition M&A and PE deals Key Developments
Demand for telecom towers is high to support a rapidly growing industry leading to emergence of lucrative tower businesses
Overview
The telecom tower market size in India is valued at INR XX bn in 2008 Types of towers
Ground-based tower Roof-top tower
x% C D E
All leading mobile service operators are expanding and increasing their coverage by:
Increasing their network Increase coverage through tower sharing Using independent tower networks
Tower infrastructure is increasingly becoming independent of telecom operators The growing market for towers is also attracting the attention of private equity funds to invest in the companies
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TELECOM TOWERS INDIA.PPT
y%
x%
Unshared Towers
Source:
Towers are placed on roofs of buildings In terms of height these towers are shorter than GBTs RTTs are ideally suited for Urban areas and metros Capex involved is usually in between INR x-y mn
Source:
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TELECOM TOWERS INDIA.PPT
Site setup y%
x%
Tower setup
Major telecom operators have hived off tower divisions into separate entities to benefit from favourable capital structure
Type of companies
Market is dominated by tower companies, owned or controlled by operators
Company A Company B Company C
New entrants
American Tower Corporation Ramboll Tower Vision Crown Castle
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TELECOM TOWERS INDIA.PPT
Company G
Company H j% Company I
k%
Source:
Gagan Uppal
Phone: E-Mail: +91 98364 71499 gagan.uppal@netscribes.com
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TELECOM TOWERS INDIA.PPT