1. Infrastructure Sharing: Unlocking a Billion Dollar Industry Iyembi Nkanza, Research Analyst ICT September 21, 2011
2. Today’s Presenter: Iyembi Nkanza What I bring to the Team • Strong research and analytical skills • Financial expertise • Strong client communication focus • A drive to meet work targets and work as a motivated team member EducationIyembi NkanzaResearch Analyst • Bcom Law and Economics from University of Cape Town, Cape Town, South AfricaFrost &Sullivan • BcomHons. Financial Analysis and Portfolio Management fromEurope, the Middle University of Cape Town, Cape Town, South AfricaEast and AfricaCape Town, SouthAfrica 2
3. Agenda • Overview – What is infrastructure sharing? – Worldwide impact/growth – Who are the players in the market? • Poll Question • Focus on Sub Saharan Africa – Market highlights? – What are the drivers / restraints? • Poll Question • Quantitative & qualitative analysis – What do stakeholders stand to gain? • Conclusion / Key take away 3
4. OverviewWhat is infrastructure sharing?
5. What is infrastructure sharing?Infrastructure Sharing: Sharing illustration, 2011 Source: Frost & Sullivan 5
6. OverviewWorldwide impact/growth
7. Infrastructure sharing has been established in developedand emerging marketsInfrastructure Sharing: Estimated Value per tower of the Largest Tower Companies (World), 2010United States IndiaTowerCo: $451,000 Wireless TT: $200,000Suncom: $261,000 Bharti: $242,000Clearshot: $566,000 Spice: $144,000Trinstel: $310,000 Reliance: $281,000 Europe Eircom: $638,000 Airwave: $688,000 Source: Frost & Sullivan 7
8. OverviewWho are the players in the market?
9. There are 3 main groups of stakeholders Regulator Tower Company Mobile Service Provider Source: Frost and Sullivan 9
10. Focus on Sub Saharan Africa Market highlights?
11. South Africa, Kenya and Ghana are at the forefront of the trend MTN Ghana sold it’s towers to ATC Cell C deal to ` Safaricom and sell towers to Telkom Kenya ATC signed a tower sharing dealSource: Frost and Sullivan 11
12. Focus on Sub Saharan Africa What are the drivers & restraints?
13. Major Drivers & Restraints Infrastructure Sharing: Drivers and Restraints (Sub-Saharan Africa), 2011 - 2017 Conducive Network coverage Reduced regulatory CAPEX savings expansion environmental impact environmentDrivers DriversRestraints Restraints Perceived loss of strategic Service providers’ Lack of regulatory Denotes Current Impact control reluctance to change guidance business model Denotes medium term Impact Denotes Long term Impact Source: Frost & Sullivan 13
14. Quantitative and qualitative analysis What do stakeholders stand to gain?
15. Quantitative Analysis of potential benefits to telecommunication service providers Infrastructure Sharing: Tower sharing comparative analysis (SSA), 2011 Potential Saving 250.00 $2.2bn 200.00 150.00CAPEX/OPEX With Sharing(R millions) 100.00 Without Sharing 50.00 0.00 1 2 3 4 5 6 7 8 9 10 Years All figures taken from averages given by service providers and tower companies Source: Frost & Sullivan 15
16. Conclusions / Key Take Away
17. Cash Savings will Allow Mobile Operators to Invest inOther Projects •Cash Flow •Expansion into Rural Areas Source: Frost & Sullivan 17
18. New product offerings will increase competition withinmarkets •Developing Backhaul Infrastructure •Focus on Product Offering Source: Frost & Sullivan 18
19. Consumers will Ultimately Avail the Benefits Source: Frost & Sullivan 19
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23. For Additional InformationSamantha James Birgitta CederstromCorporate Communications Business Unit LeaderIndustry ICT(021) 680-3566 (+27) 21 680 firstname.lastname@example.org Birgitta.Cederstrom@frost.comYves Mongoho Merwin GrootboomAccount Manager Account ManagerAfrica South Africa(+27) 21 680 3564 (+27) 21 680 3294Yves.Mongoho@frost.com Merwin.Grootboom@frost.com 23