Given the flux in the sector, telcos desperately needed to find ways to reduce debt and cost of operations. Investing in towers individually was not a viable business option for most telcos. Hence the idea of tower sharing emerged as a feasible alternative. With encouragement from the government, the concept became popular. Today, a single tower is shared by several operators.

1. INDIAN TOWER INDUSTRY
THE WAY FORWARD
OPERATIONAL
OPTIMISATION
KEY TRENDS IN THE TOWER INDUSTRY
LARGE PLAYERS
BECOMING MORE
DOMINANT
IMPETUS COMING
THROUGH DATA
GROWTH
TRAFFIC
OFFLOADING TO
MICRO SITES
GREEN TOWERS &
ENVIRONMENT
FOCUS
EVALUATION OF
ALTERNATE
SOURCES OF
REVENUE
SPECTRUM
INDUSTRY AVERAGE TOWER TENANCY RATIO
1.77 1.93
0
0.5
1
1.5
2
Industry average tenancy ratio with BSNL/MTNL
Industry average tenancy ratio without BSNL/MTNL
EVOLVING DRIVERS AND CHALLENGES
DATA
EXPLOSION
DRIVERS
NETWORK
ROLLOUT
NETWORK
UPGRADES
NEW
CUSTOMER
SEGMENTS
NEW OPPORTUNITIES
CURRENT FOCUS AREAS
ECOSYSTEM PARTNERS
EMERGING FOCUS AREAS
ENHANCING THE INTERACTION
SPHERE - NEW ECOSYSTEM
PARTNERS
Passive Infrastructure
Energy Management
Telcos
Equipment Players
(secondary)
Passive Infrastructure
Energy Management
Fiber
Wi-Fi
Small Cell
Bandwidth Management
Telcos
Equipment Players
Wi-Fi Players
Other Emerging Solutions
Cable Players
Specialised Players
PROJECTED INDUSTRY AVERAGE TENANCY RATIO
TenancyRatio
1.93
2.13
2.29
2.41
2.53
2.72
1.77
1.94
2.08
2.19
2.31
2.48
Excluding BSNL/MTNL Including BSNL/MTNL
FY15 FY16 FY17 FY18 FY19 FY20
1.5
1.75
2
2.25
2.5
2.75
Copyright © 2016 ICFAI E.D.G.E. All Rights Reserved.
SOURCES
Deloitte: Indian Tower Industry - The Future is Data