Slide 1: Telecom Towers Market – India
October 2010
Slide 2: Executive Summary
Market
Estimated requirement of XX in 20-- and XX by 20-Projected growth rate of a% p.a. in 20XX-20XX Booming Infrastructure sharing to boost the overall market Telecom tower companies follow four types of business models:
– Type 1: Towers are owned & operated by telecom operators – Type 2: Operator consolidates tower infrastructure and hives it off as a separate company – Type 3: Operators jointly setup an independent company for sharing tower infrastructure – Type 4: Independent tower companies operate on a ‘build-and operate’ model
Business Models
Drivers: Growth in subscribers, emergence of solar power as a positive source of energy,
Drivers & Challenges Govt. Regulations & Initiatives
Introduction of new technologies like 3G and spectrum scarcity
Challenges: Challenges faced in rural set up, increasing pollution and radiations
Govt. bodies like Body 1 and Body 2 have taken initiatives to develop telecom companies Financial and operational initiatives through fund grants and L Fund have boosted efforts of tower companies Tower sharing in terms of active and passive is propagating growth prospects for players Indian telecom tower market includes tower infrastructure companies, owned and controlled by telecom-operator companies and Independent tower infrastructure companies Company 1 is the leading player with o% market share Players are readily looking to reduce their capital costs through infrastructure sharing
TELECOM TOWERS MARKET IN INDIA 2010.PPT
LE P M A S
Competition
2
Slide 3: •Market Overview •Business Model •Infrastructure Sharing •Drivers & Challenges •Government Regulations & Initiatives •Competition •M&A and PE Deals •Key Developments
3
TELECOM TOWERS MARKET IN INDIA 2010.PPT
Slide 4: Demand for telecom towers is high resulting in a rapidly growing industry and emergence of lucrative tower business
Overview
• Growth in mobile subscribers in India over the last few years has created huge opportunities for the telecom infrastructure industry • Types of towers
Type 1 Type 2
Telecom Tower Requirements1
Towers (‘000s) h g
• All leading mobile service operators are expanding and increasing their coverage by
Increasing their network Increase coverage through tower sharing Using independent tower networks
LE P M A S
f e d c b a 0 m
a% o n p q r
s
t
• 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 • The commercial terms between the tower company and its tenants are governed by X
2008 2009 2010 2011e 2012e 2013e 2014e 2015e
Source: TELECOM TOWERS MARKET IN INDIA 2010.PPT
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Slide 5: Drivers & Challenges – Summary
Drivers
Growth in subscribers Emergence of Solar power as a positive source of energy Introduction of new technologies like 3G Spectrum Scarcity
Challenges
Challenges faced in rural set up Increasing Pollution and Radiations
TELECOM TOWERS MARKET IN INDIA 2010.PPT
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Slide 6: Major telecom companies are resorting to outsourcing and tower sharing to hive off their huge capital expenditure
Type of companies
•Market is dominated by tower companies, owned or controlled by operators
Company 1 – A,B, C Company 2 – D Company 3 – E
Major Tower Companies in India
•Independent tower infrastructure companies (ITICs) are more recent entrants with Company 5 being the largest •Intense competition in the industry is forcing operators to look for opportunities to reduce the cost of operations
They are doing so by outsourcing network related activities which demand huge capital expenditure and operating expenditure
LE P M A S
Company 1
t1%
C1
Company 2
t2%
C2
Company 2
t3%
C3
Company 3
t4%
C4
Company 4
t5%
C5
Company 5
t6%
C6
Company 6
t7% C7
Source: TELECOM TOWERS MARKET IN INDIA 2010.PPT
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Slide 7: Major Players (1/9)
Company Snapshot: Company 1
Corporate Information
Headquarters Founded Key People Location 1, Country 1 19-Person 1 – CEO
SAMPLE
Financial Performance
Revenue INR bn
100 80 60 40 20 0
Profit INR bn W U V X Y
20 15 10 5 0
2006
2007
2008
2009
Jul ’09Jun ’10
Business Highlights
• Operates as a wireless and broadcast communications infrastructure company and develops owns, and operates communications sites • Operates in two segments : Segment 1 and Segment 2
Segment 1 leases space on its wireless communications towers to customers, including personal communications services, cellular, specialized mobile radio, WiMAX, paging, and fixed microwave Segment 2 provides tower-related services, including acquisition, zoning and permitting services, and structural analysis services
• As of B, 20--, it owned and operated ~a communications sites in the US, Mexico, Brazil, and India • In C 20--, it acquired Company 2
Source: TELECOM TOWERS MARKET IN INDIA 2010.PPT
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Slide 8: Thank you for the attention
The Telecom Towers Market – India report is part of Research on India’s Telecom Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal
Phone: E-Mail: +91 22 4098 7530 gagan.uppal@netscribes.com
Gaurav Kumar
Phone: E-Mail: +91 33 4064 6214 gaurav.kumar@netscribes.com
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TELECOM TOWERS MARKET IN INDIA 2010.PPT
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