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    Telecom Tower Provider: Group - 8

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    Megha Agrawal
    The document summarizes the telecom tower industry in India. It describes how the industry has grown from mobile operators directly managing towers to outsourcing tower management to independent tower companies. The key types of tower companies are joint ventures between operators, independent subsidiaries of operators, and pure play independent companies. It provides an overview of the operations of tower companies and the types of towers, and discusses the regulatory environment and key players in the industry.

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    Telecom Tower Provider: Group - 8

    Uploaded by

    Megha Agrawal
    88 views16 pages
    The document summarizes the telecom tower industry in India. It describes how the industry has grown from mobile operators directly managing towers to outsourcing tower management to independent tower companies. The key types of tower companies are joint ventures between operators, independent subsidiaries of operators, and pure play independent companies. It provides an overview of the operations of tower companies and the types of towers, and discusses the regulatory environment and key players in the industry.

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    The document summarizes the telecom tower industry in India. It describes how the industry has grown from mobile operators directly managing towers to outsourcing tower management to independent tower companies. The key types of tower companies are joint ventures between operators, independent subsidiaries of operators, and pure play independent companies. It provides an overview of the operations of tower companies and the types of towers, and discusses the regulatory environment and key players in the industry.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    88 views16 pages

    Telecom Tower Provider: Group - 8

    Uploaded by

    Megha Agrawal
    The document summarizes the telecom tower industry in India. It describes how the industry has grown from mobile operators directly managing towers to outsourcing tower management to independent tower companies. The key types of tower companies are joint ventures between operators, independent subsidiaries of operators, and pure play independent companies. It provides an overview of the operations of tower companies and the types of towers, and discusses the regulatory environment and key players in the industry.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    TELECOM TOWER PROVIDER

    Group - 8

    Industry Overview
    Indian telecom sector is the third largest sector in the world and second largest among the Asian emerging economies. Amongst the 811.6 bn wireless subscribers in India, 66% reside in urban areas and 34% hail from rural areas. India and United States are the prime countries where telecom tower is recognized as an independent industry. The telecom tower industry is expected to grow at 20% during the next 5 years. This growth is driven mainly by the current capacity constraints, increased rural penetration and additional requirement to roll out 3G.

    Telecom Tower Industry in India


    The tower industry is growing continuously with the active support of the Government. During the early years, the mobile operators 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 tower companies, 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.

    Industry structure
    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.

    Operations handled by a tower company


    Site planning, site acquisition and obtaining of necessary regulatory approvals, site erection and commissioning of tower and allied equipment. After the site starts radiating, the site maintenance including provision of support services such as back-up power, air-conditioning and security will be handled by the tower companies. Currently the government policies allow sharing of both passive infrastructure and active infrastructure. Passive infrastructure is the non electronic components like tower, antenna mounting structures, BTS shelter, power supply, battery bank, invertors, diesel generator, Air conditioner etc

    Operations handled by a tower company


    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 active infrastructure.

    Types of Tower
    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.

    Regulatory support
    In 2005, the DoT issued guidelines on passive infrastructure sharing and in 2008 active infrastructure sharing was also implemented. In 2007 the government under the USO(Universal Service Obligation) fund scheme announced monetary support for setting up towers in rural and remote regions of the country. The IP operators are facing major challenges in obtaining permission for their sites from regulators and government authorities. There is no uniformity in the taxes levied by the government authorities on these towers and it varies from municipality to municipality even within the state. At present there is no centralized regulatory framework which is identified as a key gap.

    Key players

    Indus GTL Infra Bharti Infratel WTTIL Quippo Reliance Infratel

    Competitors Analysis

    Name of Company
    GTL Infra Indus

    Revenue
    $ 74.30 Mn $ 2 Billion

    Infrastructure
    Passive Passive

    No of Towers
    Over 30,000 Over 110,000

    Bharti Infratel
    WTTIL Quippo Reliance Infratel

    $2.6 Billion
    -

    Passive
    Passive Passive

    Over 30,000
    Over 18,000 Over 48,000

    STRENGTHS
    Economies of scale Increasing Telecom Subscriber base Emergence of Solar power as a positive source of energy High growth rate

    WEAKNESS
    Regular Technological Innovations Government Regulations Huge Capital involved

    OPPORTUNITIES
    3G and beyond Wireless Tower Expansion Data Services Emerging Markets Data Intensive Applications Digital Media

    SWOT ANALYSIS
    THREAT
    Increasing Pollution and Radiations Entrance of Global Players Risk of Technology Obsoletion and continuous need of up gradation

    POLITICAL
    Protection & Environmental Laws Tax laws Trade Regulations

    ECONOMICAL
    GDP Trends Interest Rates Price Control Cost

    PEST ANALYSIS
    SOCIAL
    Land Acquisition for tower setup

    TECHNOLOGICAL
    New products Emerging technology

    Modes of Entry
    Through joint ventures Merger

    Independent tower company

    Mergers and acquisitions in Tower industry

    Tower Industry in India is on the path of mergers and consolidation. Some of the significant acquisitions during the recent period are: WTTIL acquisition of TTMLs 2500 towers for a value of Rs 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 4450 towers and 325 towers of Transcend infrastructure.

    Conclusion
    The telecom tower industry in India is expected to grow at 20% during the next 5 years. This growth is driven mainly by the current capacity constraints, increased rural penetration strategy and additional requirement for rolling out 3G services. It is advantageous for the mobile operators to tie up with tower companies as it is faster and cheaper to roll out the network by collocating with Infrastructure operators (IP) rather than expanding their own network.

    Thank you

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