Growth of independent tower companies through infrastructure sharing enabling overall growth of telecom tower market at a CAGR of 18.0%

Latest market study on Telecom Tower Market to 2025 - Global Analysis and Forecasts Type (Lattice Towers, Guyed Towers, Monopole towers, Camouflage Towers, and Mobile Cell Towers), Tower Placement (Green field tower, and Rooftop Tower); and Deployment Type (Shared Infrastructure Deployment and Owned Deployment) - Global Analysis and Forecast”, the telecom tower market is estimated to reach US$ 146.53 Bn by 2025 from US$ 40.04 Bn in 2017. The report include key understanding on the driving factors of this growth and also highlights the prominent players in the market and their developments.

In the telecom tower market, various business models have existed since the times of network establishments. Earlier, the Mobile Network Operators used to deploy their own towers and roll out services to their customers, however, this model provided to be largely a loss to the businesses. A wholly owned tower majorly caused losses to the MNOs as the telecom services used to be highly expensive and not many subscribers were present on the network. The Capex and Opex often exceeded the revenues generated from these tower establishments and hence, there was a need for a different business model that would allow the generation of new revenue streams from the towers.

The emergence of independent tower company’s business model allowed for a greater diversity and profit making ventures for the telecom tower industry as a whole. Primarily, three different kinds of business models have co-existed in the telecom tower industry. The first category is of the pure play tower companies such as American Tower Corporation, Crown Castle, and SBA Communications that are outsourced by the MNOs for tower deployments as and when required. In this business model, the entire tower infrastructure is managed and owned by the pure play tower provider and the MNO does not need to spend on the capital or operational expenditure. The other category is operator-led tower companies where 51% or more of the equity is retained by the MNOs such as China Tower Corporation, Indus Towers, and Bharti Infratel.

The separation of infrastructure assets from retail telecommunication releases capital and creates capital value, enabling MNOs to focus on selling minutes and megabytes. It would be naïve to assume that this industry transformation comes at no cost and without risk: MNOs would be well advised to absorb the cautionary tales of peers who leveraged tower companies partnerships to sell their passive infrastructure for many times its replacement cost, in the process saddling the MNO’s local operating companies with an increased total cost of network ownership that may become difficult to sustain in the long term. The independent tower companies have focused on Increasing tenancy ratios, driving tower cash flow and reducing skyline clutter, making more efficient use of land, by decommissioning parallel infrastructure.

The market for telecom tower globally has been segmented on the basis of type into the following segments including lattice towers, guyed towers, monopole towers, camouflage towers, and mobile cell towers. The telecom tower market has been further bifurcated on the basis of tower placement into Greenfield tower, and rooftop tower. Also, the telecom tower market has been segmented based on the deployment type into shared infrastructure deployment and owned deployment. Geographically the telecom tower market is presently dominated by developed regions including, Asia Pacific. However, the market is expected to be in favor of Middle East and Africa, and North America. The rising penetration of smartphones in the developing economies of Africa and Asia coupled with the rapidly developing internet infrastructures in these regions are proving to be the major drivers for the growth in the adoption of telecom tower installations.

The market for telecom tower is concentrated with large numbers of well-established players as well as emerging players across the globe. The major companies operating in the market includes American Tower Company, China Tower Corporation, Indus Towers Limited, IHS Holding Limited, and PT Tower Bersama Infrastructure TBK. Ltd. Also, Crown Castle International Corp., SBA Communications Corporation, Telesites S.A.B. de C.V., Cellnex Telecom, S.A. (Abertis Telecom Satélites, S.A., and Telxius. are few other players that are investing into the technological innovations for rolling out telecom towers in the near future.

The report segments the global telecom tower market as follows:

Global Telecom Tower Market - By Type

Lattice Towers
Guyed Towers
Monopole Towers
Camouflage Towers
Mobile Cell Towers

Global Telecom Tower Market - By Tower placement

Greenfield Tower
Rooftop Tower

Global Telecom Tower Market - By Deployment Type

Shared Infrastructure Deployment
Owned Deployment

Global Telecom Tower Market - By Geography

North America

U.S.
Canada
Mexico

Europe

France
Germany
Italy
Spain
UK
Rest of Europe

Asia Pacific (APAC)

Indonesia
China
India
Japan
Rest of Asia Pacific

Middle East and Africa (MEA)

South Africa
Egypt
Morocco
Oman
Saudi Arabia
UAE
Kuwait
Qatar
Bahrain
Rest of Middle East and Africa

South America (SAM)

Brazil
Rest of South America

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