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Market Research Report : Telecom Towers Market In India 2010


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The telecom towers business in India is lucrative with long-term growth prospects. Telecom becoming a necessity for individuals, the market is expected to boom in the future. Due to increasing penetration of advanced technologies in the market, players are looking to tap the opportunities being offered by 3G and WIMAX. Infrastructure sharing has however become an essential part of the market because more and more players are looking to reduce their capital and operational expenditure on telecom towers. The market is witnessing growth and provides greater opportunities for players in the near future.

The report begins with the market overview section highlighting the telecom tower requirements in India. The cost break-up and description of different types of telecom towers in India is also highlighted. This is followed by the information regarding the various business models followed in India with regards to erection of towers and its related infrastructure. A section on infrastructure sharing highlights the types of sharing associated with telecom towers. It also identifies the key benefits of sharing for players in the market. A sample tower profitability matrix has also been prepared to analyze the profit for players.

The key factors of growth for the market have been analyzed. An analysis of these drivers explains the factors for growth of the industry including growth in subscribers, emergence of solar power as a positive source of energy, introduction of new technologies like 3G and spectrum scarcity. The key challenges identified encompass challenges faced in rural set up and increasing pollution and radiations. This is followed by the government regulations section which provides a brief description of the major government bodies operating in this sector. The key initiatives taken by the government on account of boosting the sector have been analyzed including the role and regulation of the government in terms of infrastructure sharing.

The competition section provides an overview of the competitive landscape of the market highlighting the current market share of the tower companies on account of the number of towers operational under their banner. It also provides a detailed matrix of major telecom players in India with their current subscriber base and the respective tower infrastructure providers. It also includes detailed profiles of major players present in the market. This is followed by the mergers & acquisitions section which gives a snapshot of the major deals that have happened in the sector over the past year. It also highlights the PE investments in the sector. A key developments section has also been provided highlighting the developments in the market over the past year.

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Market Research Report : Telecom Towers Market In India 2010

  1. 1. Telecom Towers Market – India October 2010
  2. 2. Executive Summary Estimated requirement of XX in 20-- and XX by 20-- Market 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: LE – Type 1: Towers are owned & operated by telecom operators Business P – Type 2: Operator consolidates tower infrastructure and hives it off as a separate company Models – Type 3: Operators jointly setup an independent company for sharing tower infrastructure Drivers & Challenges SAM – Type 4: Independent tower companies operate on a ‘build-and operate’ model Drivers: Growth in subscribers, emergence of solar power as a positive source of energy, 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 Govt. Financial and operational initiatives through fund grants and L Fund have boosted efforts of Regulations & tower companies Initiatives 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 Competition 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 2
  3. 3. •Market Overview •Business Model •Infrastructure Sharing •Drivers & Challenges •Government Regulations & Initiatives •Competition •M&A and PE Deals •Key Developments TELECOM TOWERS MARKET IN INDIA 2010.PPT 3
  4. 4. Demand for telecom towers is high resulting in a rapidly growing industry and emergence of lucrative tower business Overview Telecom Tower Requirements1 • Growth in mobile subscribers in India over the last few years has created huge opportunities for the Towers (‘000s) telecom infrastructure industry LE h • Types of towers g P Type 1 f t Type 2 a% s M e r • All leading mobile service operators are expanding q A and increasing their coverage by p d o Increasing their network Using independent tower networks S Increase coverage through tower sharing • Tower infrastructure is increasingly becoming c b a m n independent of telecom operators 0 • The growing market for towers is also attracting the 2008 2009 2010 2011e 2012e 2013e 2014e 2015e attention of private equity funds to invest in the companies • The commercial terms between the tower company and its tenants are governed by X Source: TELECOM TOWERS MARKET IN INDIA 2010.PPT 4
  5. 5. Drivers & Challenges – Summary Drivers Challenges Growth in subscribers Challenges faced in rural set up Emergence of Solar power as a positive source of energy Increasing Pollution and Radiations Introduction of new technologies like 3G Spectrum Scarcity TELECOM TOWERS MARKET IN INDIA 2010.PPT 5
  6. 6. Major telecom companies are resorting to outsourcing and tower sharing to hive off their huge capital expenditure Type of companies Major Tower Companies in India •Market is dominated by tower companies, owned or controlled by operators LE Company 1 – A,B, C Company 1 t1% C1 Company 2 – D Company 3 – E M •Independent tower infrastructure companiesP Company 2 t2% C2 5 being the largest SA (ITICs) are more recent entrants with Company •Intense competition in the industry is forcing operators to look for opportunities to reduce Company 2 Company 3 t3% t4% C4 C3 the cost of operations Company 4 t5% C5 They are doing so by outsourcing network related activities which demand huge capital expenditure Company 5 t6% C6 and operating expenditure Company 6 t7% C7 Source: TELECOM TOWERS MARKET IN INDIA 2010.PPT 6
  7. 7. Major Players (1/9) Company Snapshot: Company 1 SAMPLE Corporate Information Financial Performance Revenue Profit Headquarters Location 1, Country 1 INR bn INR bn 100 Y 20 X W 80 Founded 19-- U V 15 60 10 40 Key People Person 1 – CEO 20 5 0 0 2006 2007 2008 2009 Jul ’09- Jun ’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 7
  8. 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 Gaurav Kumar Phone: +91 96191 00122 Phone: +91 98303 09715 E-Mail: E-Mail: Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. TELECOM TOWERS MARKET IN INDIA 2010.PPT 8