TowerXchange Meetup Africa 2013 Final Programme Agenda
TowerXchange-Issue_8
1. Tower Xchange
Tower Xchange
Plus TowerXchange’s analysis of American Tower’s International strategy
Issue 8 | May 2014 | www.towerxchange.com
LatAm - let’s meetup!
Join 200 decision makers, representing 42 towercos and
carriers, at the TowerXchange Meetup Americas
The journal for the emerging market telecom tower industry
TowerXchange Asia:
< The structure of the Myanmar tower rollout
< Axiata spins out and launches edotco
< CEO interviews: edotco, STP and IGT!
TowerXchange Africa:
< Market size and forecasts for next two years
< Airtel tower sale preview, including Nigeria
< Opportunities in Chad, Niger and Burkina Faso
TowerXchange Americas:
< 20k Brazilian towers for sale, BTS analysis
< Impact of LTE and ‘Tower Law’ on Chile
< The ground lease aggregation model
3. Contents
Regular features
9 News: deals, launches and licenses
20 TowerXchange Meetup Americas agenda
50 LatAm tower count + middle market towercos
82 Africa tower count and heatmap
115 Myanmar tower count
47 81 103
144
LatAm: Brazil, Chile and
Argentina
Africa: Burkina Faso, Chad,
Niger and Nigeria
Asia: exclusive CEO interviews
with STP, edotco and IGT
RMS and site management
systems
50 Introduction to the LatAm tower industry
55 Seeking value in the Brazilian towers market
57 Planex on the Argentinian tower industry
62 Chile case study: LTE and ‘Tower Law’
82 African towers: market size and growth forecasts
89 A preview of Airtel’s African tower sale
93 A closer look at Burkina Faso, Chad and Niger
98 The changing shape of the Nigerian tower industry
104 Nobel Tanihaha, President Director of STP
107 edotco launches; we interview CEO and CTO
115 The structure of the tower industry in Myanmar
119 John Stevens, CEO, Irrawaddy Green Towers
166 Rooftops, masts and
towers
167 Evaluating and strengthening existing towers
171 Can Brazilian towers accommodate multiple tenants?
175 Rooftops, billbards and IBS in Mexico
179 From boutique manufacturer to global tower provider
145 How to select and deploy RMS
150 ConnectM + Gemalto: intelligent tower management
154 Caryon Development advocate ‘Smart Towers’
159 The latest from AIO Systems and azeti
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Special features
5 AMT’s international portfolio
39 EY’s intro to towerco business models
45 Hardiman on the Italian tower market
135 Ground lease aggregators
182 TowerPower: Bergey, Ballard, Power-One, TSi
Power, Imergy and Trojan battery
4. Africa’s leading,
independent,
telecom tower
company
HTA acquires, builds and manages wireless
telecom infrastructure, leasing it to mobile
network operators across Ghana, Tanzania
and the Democratic Republic of Congo.
HTA’s model of shared telecoms infrastructure,
and its scale, helps to deliver improved
efficiency and network quality and reliability
for operators, reduced costs for users and
increased accessibility.
Find out more about our business
www.heliostowersafrica.com
5. TowerXchange’s analysis of
American Tower’s International
portfolio
As the leading towerco reports their annual results, TowerXchange
examines the figures to summarise AMT’s international strategy
“In 2013, we drove record levels of organic growth in both our US and international segments and
added over 10,000 sites to our global asset base through the acquisitions of the GTP and NII portfolios
and our ongoing site construction program,” said American Tower (AMT) Chairman, President and
CEO Jim Taiclet during the conference call announcing AMT’s 2013 results. Taiclet later continued: “we
have purposely and methodically expanded our asset base to over 67,000 towers that deliver strong
organic growth as well as the highest margins in our industry.”
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Given our focus on the tower industry in Africa,
LatAm and Asia, I thought TowerXchange readers
might be interested if we isolated some of the key
data points relating to AMT’s international strategy.
AMT currently owns over 39,000 sites outside its
domestic US market. AMT’s international segment
accounted for around 25% of Operating Profit
during Q4 2013, and contributed close to 40% of
the total growth in EBITDA, as a function of organic
growth and recent acquisitions, particularly in
Brazil and Mexico.
AMT continues to leverage its international portfolio
to supplement its domestic growth and expects its
international operations to generate organic core
growth rates of at least 200-300 basis points above
those of the U.S.
International tenancy ratios
AMT believes that the lower current average
tenancy ratio and gross margin profile of its
international portfolio combined with solid
structural characteristics and attractive geographic
distribution, provides an excellent opportunity for
strong, sustainable long term international growth.
Historically, AMT has achieved impressive
growth in tenancy ratios and revenue per tower
on legacy sites in markets such as Brazil and
Mexico. “We have nearly doubled our revenue
per tower on a constant currency basis for
United States 27,739
India 11,529
Mexico 8,369
Brazil 6,746
Colombia 3,461
Germany 2,031
Ghana 1,969 South Africa 1,900 Chile 1,150 Peru
498
Costa
Rica 456
Panama
57
Uganda 1,164
AMT International tower count as of December 31, 2013 (excludes DAS)
6. our international sites in place since the end
of 2003, while simultaneously increasing the
gross margin percentage,” stated Taiclet on
the conference call. “Excluding pass-through
revenues, such as ground rent and generator
fuel in the relevant markets, these sites currently
generate gross margins significantly in excess of
90% today.”
While tenancy ratios have more than doubled
in Brazil since towers were acquired (see
infographic), similar growth has been achieved
in South Africa, where AMT reports a current
tenancy ratio of over 2 tenants per site on the
original portfolio they purchased from Cell C
in 2011, having added over 700 co-locations to
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the original 1,364 site portfolio – impressive
considering the acquisition included 459
rooftops.
Tom Bartlett, EVP and CFO of American Tower
concluded “we believe our international
operations will continue to generate organic
core growth rates significantly in excess of our
domestic operations. In our view, the long-term
growth story in international is very exciting.”
Further acquisitions
AMT prioritises international investments
utilising an extensive evaluation process,
including political, economic and business
environment considerations. Like most towercos,
they are attracted to competitive markets with
three or more major carriers as prospective
tenants, and where data network deployments
are imminent or ongoing.
AMT understandably offer few clues as to their
appetite for specific international acquisition
opportunities, except to emphasise their
continuing strategy to deepen their presence in
“legacy markets”. This would seem consistent
with unconfirmed rumours suggesting AMT’s
continued appetite for opportunities in
Mexico and Brazil, and AMT’s widely rumored
withdrawal from interest in any portions of the
Airtel Africa portfolio of 15,000 towers currently
Tenancy ratios in selected AMT International markets
Source: American Tower 2013 International Analyst Day Presentation
Uganda
1.1
Ghana
1.4
Brazil
1.4 Mexico
1.5
South
Africa
1.8
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being brought to market. AMT did emphasise
that “we are first and foremost having the US as a
priority”.
There have recently been unsourced rumors
connecting AMT with a bid to acquire Viom
Networks, which operates around 42,000 towers in
India.
Build to suit economics
AMT provided a rule of thumb comparison of
macro site build costs of US$30k-$50k in India,
US$150k-$200k in LatAm and EMEA and US$225k-
$275k in the US. They spoke of the very high
rates of return on build-to-suit activity, and their
enthusiasm to allocate as much capital as possible
to the category. CFO Tom Bartlett suggesting “if
you use TCF, tower cash flow, divided by cost
as a surrogate for rate of return, if you go back
and you take a look at our 2009 towers that we
built, we are generating 20% rate of returns on
our international portfolio and over 10% on the
US portfolio.” BTS activity generally comes with
an anchor tenant under MLA and AMT typically
looks to add another tenant within 36 months.
Conclusion
AMT is a growth stock and the company views
its international portfolio as an excellent
complement to its assets in the U.S. where it
has created tremendous shareholder value
by acquiring and upgrading key macro cell
sites and leasing space to support carriers’
transition from an era of voice-centricity to
the era of data-centricity. That voice to data
transition is still taking place in international
markets, and AMT is acquiring assets and
building towers to ride this international
wave of data demand growth. The need
for cell site densification in International
markets is illustrated by the fact that there are
approximately 4,000 subscribers per cell site
in Brazil, and 3,000 subscribers per cell site in
South Africa, compared to 1,100 in the US.
AMT has a significant tower footprint in North
and South America, including its legacy core
international markets of Brazil and Mexico
where it has been operating for nearly 15
years. In addition, the company has materially
enhanced its presence in other regions over
the last several years to solidify its position as
a global player in the industry. This includes
tower portfolios in India, South Africa, Ghana,
Uganda and Germany, markets in various
stages of wireless development where AMT
sees significant opportunities for profitable
growth
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
3.5
3
2.5
2
1.5
Example tenancy ratio growth (American Tower Brazil 2002-13)
Source: American Tower Analyst Presentation 2013
8.
9. to none.” – Ehize Ilozavbie, Chief Legal Officer at
SWAP TECHNOLOGIES AND TELECOMMS
“Myanmar is set to grow the nationwide tower base
from 1,800 to circa 15,000 sites over the next five
years, with mobile penetration going from 6% to
80% in the same period. Despite the frontier market
risk and the greenfield nature of the roll-out, any
well managed tower portfolio in Myanmar is bound
to generate above-average returns in the medium
to long term.” – Paul Hemming, Director, Redwing
Asia
“Most Investments are made to get high returns;
you can not beat Nigeria in terms of ROI! All
procedures may not always be proper, but then the
tower industry is not killed (as yet) by greedy town
councils and municipalities!” – Surendra Kulkarni,
CTO, Glomobile Ghana
“I am in Myanmar and we have all been
transported back to 1996, the first time a towerco
has the opportunity to build a new network to
accommodate four operators from the very start.
Great country many challenges such nice people.”
– Brian Edwards, Operations Director, Apollo
Towers Myanmar
“Why would I invest in the DRC? DRC is a
challenging but proven market. Helios Towers
DRC has achieved impressive tenancy ratios on
the towers acquired from Millicom Tigo in 2010.
However, DRC’s most extensive tower network
is Airtel’s, currently available as part of Airtel’s
African tower sale.
Myanmar: the most investible
tower market in the world
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“Myanmar provides a very unique opportunity
to the world for green field roll out and hence the
learning from all other emerging markets can
be put to use to optimise design, cost and opex
with green energy solutions for the roll out of the
network. Excellent opportunity for MNOs, towercos
and OEMs to combine their energy and resources to
put all best practices to use.” – Sandeep Kaul, then
CTO, IHS Nigeria
If given US$200mn to invest in emerging market towers, 27% of
TowerXchange LinkedIn Group members would acquire assets in Myanmar
“The constitutional reform in telecommunications
in Mexico 2013 states the building of a wholesale
network in the 700 MHz band, this makes
(Mexico) a great option.” - Ramiro Robledo,
Director, Regulatory Projects, Federal
Telecommunications Institute, Mexico
“The appetite for towers in Nigeria is insatiable yet,
but for the setbacks of power, the market is second
TowerXchange conducted a light-hearted survey via our LinkedIn group to ask “If you had US$200mn
to invest in emerging market towers, in which country would you prefer to acquire assets?”
Myanmar Brazil Nigeria DRC Mexico
What would be your vote?
Selected comments on the survey from TowerXchange LinkedIn group members:
30%
25%
20%
15%
10%
5%
27
22
20
15 15
10.
11. The DRC has a long runway for growth: with a
population of 75.5mn, DRC has mobile penetration
of just 17.5%, but growing fast. The overlay of 3G
commenced in 2012 and is stimulating demand for
infill sites. Four of Africa’s top six operators are
present in DRC (Airtel, Orange, Tigo and Vodacom)
and Ziad Dalloul’s Africell leveraged tenancies
on Helios towers to come to market quickly and
competitively.
For me the downsides of investing in DRC towers
translate to barriers to entry for competitors. There
is some country risk in a country with ongoing
conflict, particularly in East, but the perceived risk
may be greater than the actual.
Running a towerco in a country with such under-
developed power and transport infrastructure is
a tremendous challenge. Most cell sites outside
Kinshasa and Lubumbashi are off-grid, and the
delivered cost of a dollar’s worth of diesel can be
US$1.80. So the caveat I attach is that I would only
back a management team with proven experience
in frontier tower markets.” – Kieron Osmotherly,
CEO, TowerXchange
Read TowerXchange’s latest analyses
and interviews first, and share your
opinions, by joining the TowerXchange
LinkedIn group FREE at:
http://www.linkedin.com/groups/
TowerXchange-4536974
Africa News
MTN Nigeria tower sale process well
under way
MTN kicked off a process to sell the largest tower
network in Nigeria, an estimated 9-10,000 towers,
earlier in 2014. The portfolio unquestionably
represents the most valuable single country package
of African tower assets brought to market to date,
and could command a valuation above US$1bn,
depending on MTN’s preferred leaseback rate
IHS raises a further US$130mn from
existing investors
Less than two months after announcing a US$490mn
capital raise, IHS has secured a further US$130mn
from existing investors, pushing total capital raised
beyond US$1.6mn.
IHS are likely to bid aggressively for several of the
portfolios of towers currently for sale in Africa,
giving particular priority to their native market
Nigeria, where MTN, Airtel and Etisalat have a
total of around 18,000 towers for sale – which
coincidentally might attract an aggregate valuation
near to the US$1.6mn total capital raised to date
by IHS, depending on the usual variables (deal
structure, lease back rate, contract duration etc)
Airtel now #2 in Nigeria
Data released by the NCC in February 2014
shows that Airtel Nigeria had a 26.2mn subscribers,
followed by Glo with 24.5mn and Etisalat with
18.1mn. MTN remain market leaders with 57.2mn
subscribers. New Airtel Africa CEO Christan de
Faria called the statistics “a clear indication of the
trust that a growing sector of the population have
started to have in us…Nigeria continues to be a very
competitive telecoms market and our intention is to
ensure that we continue to innovate and make life
easier for our customers.”
Sonatel and MobiNil tower sales
continue to progress
According to TMT Finance, a shortlist of three
bidders has reportedly been drawn up for MobiNil’s
2,500-3,000 Egyptian towers, with the deal
potentially closing before the publication of the
Summer edition of the TowerXchange Journal – we’ll
cover it in more detail at that time.
Meanwhile, another MNO in which Orange owns a
stake, Sonatel, is progressing the sale of 3,000 towers
across Senegal, Mali, Guinea Bissau and Guinea
Conakry
IHS closes deal to acquire MTN
towers in Rwanda and Zambia
First reported in issue 7 of TowerXchange, IHS’s
latest deal with MTN has now been completed with
slightly modified tower counts, as is often the case.
IHS has acquired and will manage a total of 1,269
Nigeria
Nigeria
Nigeria
Senegal Egypt
Rwanda Zambia
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13. the coveted OSHAS 18001 certification mark to
demonstrate their conformance to the standard.
OHSAS 18001 was first introduced in 1999 and
requires organisations to assess their risk and
implement an effective occupational health and
safety management system to promote a safe
and healthy working environment. Certified
organisations are committed to continuous
improvement and are assessed annually to ensure
progress is being maintained.
“We are particularly pleased to have achieved the
OSHAS 18001 certification in all of our existing
markets as it underlines our commitment to our
customers and our focus on quality of service.
We are the first and only OSHAS 18001 certified
company in each of our markets,” said Chuck
Green, CEO of Helios Towers Africa
Helios Towers Tanzania launches IBS
HTA’s Tanzanian opco Helios Towers Tanzania
(HTT) launched their In-Building Solutions strategy
at an event at the Kilimanjara Regency Hotel in Dar
es Salaam recently.
“As the sector matures there is a clear mandate to
improve the breadth and quality of these services;
namely voice and data services. Tanzania has
seen a wide proliferation of next generation
technologies like 3G and 4G services,” said Norman
Moyo, CEO of HTT. HTT’s IBS are expected to
improve QoS in large and tall buildings as well as
along roads
“This acquisition is in line with our stated strategy
of strengthening our market position through
in-country acquisitions, as and when suitable
opportunities come along. We are at an advance
stage of successfully integrating Warid’s Uganda
operations with that of Airtel and look forward to
a similarly swift transition in Congo Brazzaville
as well. As already demonstrated in Uganda, the
merger will bring more value for the customers in
the form of affordable data and roaming tariffs,
innovative products, Airtel Money, world-class
networks and customer care,” said Manoj Kohli,
CEO (International) of Bharti Airtel
Smart East Africa launches
Smart East Africa, a subsidiary of the Aga Khan
Fund for Development, is launching operations in
Uganda, Tanzania and Burundi.
At the Kampala launch, Group CEO Abdellatif
Bouziani called attention to his firms experience
in Afghanistan and Tajikistan, and the AGA Khan
Development Network’s 100 years experience of
investment in East Africa, as evidence of their
experience
HTA achieves OSHAS 18001
compliance
Congratulations to HTA on completing their clean
sweep of OSHAS 18001 certification in each of their
existing markets, Ghana, Tanzania and the DRC.
All HTA operations have earned the right to display
towers, broken down as 550 in Rwanda and 719 in
Zambia, representing 100% of MTNs towers in the
two countries. The deal also includes a build-to-suit
programme
Fourth MNO license for Zambia
ITWeb Africa quote Zambian Minister of
Communications and Transport, Yamfwa Mukanga
suggesting the previously postponed issue of
a fourth mobile license would follow after the
implementation of the digital migration project,
saying ““The government is concerned with the
high cost of communication. So the fourth mobile
operator will come with many advantages including
reduced cost of making phone calls and other
services.” Vodacom continue to be rumoured to
be interested in Zambia. Airtel are current market
leaders, followed by Zamtel and MTN. According
to BMI data reported in TowerXchange, Zambia’s
mobile penetration was 71.1% at the end of 2012
and is forecast to reach 91.2% by 2017. ARPU is
around the US$5 mark
MNO consolidation continues as Airtel
again acquires Warid assets
Having acquired Warid’s business in Uganda
and Bangladesh, Bharti has repeated the feat by
acquiring Warid’s subsidiary in Congo Brazzaville.
The transaction is thought to be valued at US$70-
80mn. The deal adds Warid’s 1mn customers to
Airtel’s market leading 1.6mn customers, vaulting
the Indian telco above MTN as the market leader in
Congo Brazzaville.
Zambia
Congo Brazzaville
Uganda
DRC
Burundi
Tanzania
Tanzania
Ghana
Tanzania
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Quoting selectively from the GSMA’s press release;
at a high-level meeting at Mobile World Congress
in Barcelona, senior leaders from eight major
mobile operator groups, covering 551 million
mobile connections across Africa and the Middle
East, announced a plan to cooperate on network
infrastructure sharing initiatives that recognise
the profound impact of mobile broadband and
Internet services on the citizens of both regions. The
participating operators have made this commitment
in order to provide Internet and mobile broadband
access to unserved rural communities and drive
down the cost of mobile services for all sections of
the population.
“This cooperation demonstrates that the industry
is committed to innovating in order to serve the
billions living in the rural areas,” said Manoj Kohli,
Managing Director, Bharti Enterprises and Chair of
the Public Policy Committee of the GSMA board, who
also supports the initiative. “We call on governments
to support and encourage the commercial
infrastructure sharing arrangements that we aim to
propose.”
An impressive roster of senior leaders have attached
their names to this infrastructure sharing initiative:
< Christian de Faria, CEO Africa, Bharti Airtel
< Ahmad Julfar, Group CEO, Etisalat Group
< Sifiso Dabengwa, CEO and President, MTN Group
< Dr. Nasser Marafih, Group CEO, Ooredoo Group
< Marc Rennard, Senior Executive Vice President,
Africa, Middle East and Asia, Orange
< Abdulaziz A. Alsugair, Chairman and Managing
Director, STC Group
< Serpil Timuray, CEO, Africa, Middle East and Asia
Pacific Region, Vodafone Group
< Scott Gegenheimer, CEO, Zain Group
TowerXchange contacted the GSMA to learn more
about this initiative…
TowerXchange: It’s exciting to read that 8 of the
leading operators in MEA plan to cooperate on
network sharing initiatives that will accelerate
provision of Internet and mobile broadband
access to rural communities - can you give us
some detail on how these initiatives will work in
practice?
Peter Lyons, Director of Public Policy, GSMA: With
the strategic direction now set at the regional
level, the next step is for operators to undertake
an extensive review of the relevant regulatory,
commercial, and technical conditions in each of
their operating markets across these 48 countries.
For instance, operators will need to identify
those markets where there is a lack of regulatory
clarity around voluntary network infrastructure
sharing arrangements. For its part, the GSMA will
offer continuous support for the development of
progressive policy environments and national
regulatory frameworks that allow for voluntary
commercial sharing arrangements.
TowerXchange: What specific steps can
governments take to support and encourage
infrastructure sharing in MEA, both in terms
of regulatory frameworks and in terms of
facilitating access to government-owned assets?
Peter Lyons, Director of Public Policy, GSMA:
The regulatory framework of a country should
facilitate all types of voluntary infrastructure
sharing arrangements, which can involve the
sharing of various components of mobile networks,
including both so-called passive and active sharing.
Governments can help by providing regulatory
clarity so that market participants can consider such
arrangements.
TowerXchange: Are these initiatives currently
focusing solely on passive infrastructure sharing,
or is there provision or appetite for active
infrastructure sharing or RANsharing in the
future?
Peter Lyons, Director of Public Policy, GSMA: This
initiative covers passive infrastructure sharing, and
where technically feasible, active infrastructure
sharing
GSMA announces infrastructure sharing
initiative across the Middle East and Africa
Initiative aims to enhance use of network infrastructure to connect
underserved communities
15.
16. Mexican secondary telecoms reform
delayed
The critical secondary telecom legislation is
still pending before the Mexican Congress. In a
recent statement, Chamber of Deputies President
Jose Gonzalez Morfin informed the press that
lawmakers are likely to meet for special sessions
to define the content of the legislation during the
month of May.
Telefonica targets Iusacell
Bloomberg report that Telefonica is in talks to
acquire Iusacell, Mexico’s third ranked operator.
Mott MacDonald report that Iusacell has 8%
market share, with Telefonica on 19%. A merger
could create a stronger competitor for America
Movil’s Telcel, which leads the market with 69%.
Claro Colombia announces 4G
investment plans
The leading carrier is likely to invest US$1bn to
develop its 4G network over the course of 2014,
as stated by the company’s President Juan Carlos
Archila. The project aims at expanding LTE
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coverage to 50% of the Colombian population in
the next three months.
Une-EPM and Tigo Colombia merger
receives regulatory approval
The national antitrust authority of Colombia
has approved the merger between state-owned
Une-EPM and Millicom’s Tigo. The companies
have eight months to come to an agreement with
regards to which blocks of their spectrum will
be given back to the Ministry of Information
Technology and Communication.
The merger would result in the new entity
holding the rights for 135MHz of frequencies
in spite of 85MHz being the limit per operator.
Une-EPM and Tigo Colombia would then have 28
months to hand back the spectrum.
In the event of the companies failing to reach an
agreement, the authority could impose them fines
up to US$31.8mn.
Substantial portfolios likely to change
hands in Brazil
Sources suggest to TowerXchange that there are
three substantial tower portoflios at various
stages of coming to market in Brazil, including
two privately owned tower firms and one sale
and leaseback opportunity.
The sales are at various stages of progress but we
forecast that a total tower count in five digits will
change hands in the next two quarters.
TIM Brasil’s likely next moves
TIM Brasil is likely to bid in the upcoming
700 MHz spectrum auction following a
recommendation by its Board of Directors. The
auction is likely to take place in August, following
a public consultation during the month of May.
While exploring their move, TIM Brasil is also
assessing divesting its portfolio of approximately
7,000 towers in order to raise the capital needed
to then deploy 4G LTE across the country.
Currently, the company is looking for new
financial advisers to work on the sale of its
telecom towers in Brazil after a senior specialist
of Morgan Stanley, their current adviser, left the
bank.
Oi-PT merger receives
Portuguese competition
watchdog approval
The Autoridade da Concorrencia (AdC) of
Portugal has recently approved the tie-up
between Brazilian’s Oi and Portugal Telecom
Mexico
Mexico
4G LTE, mergers and capital
raising make the headlines in LatAm
Consolidation rumours persist while networks upgrades
throughout the region keep progressing
Brazil
Brazil
Columbia
Columbia
BrazilPortugal
17. Investors pour capital into middle
market towercos as BTS is outsourced in
Brazil
Bloomberg report that five different middle
market towercos in Brazil, Brazil Tower Company,
Highline do Brasil, T4U, QMC and CSS, have
attracted investment form seven private equity
firms including Goldman Sachs and Patria
Investimentos. One of the towercos suggested
that Brazil’s carriers were soliciting “bids to build
about 3,900 towers, more than half the 6,680 new
towers needed in 2014 to improve networks.”
Bloomberg go on to quote statistics attributed to
Brazil Tower Company, who say they build towers
for 200,000 reais to 500,000 reais each, which
“values the 3,900 to be built by third parties at
780 million to 2 billion reais, according to data
compiled by Bloomberg. Brazil Tower then expects
to sell the sites in bulk for as much as $300,000
each.”
Intriguingly, Bloomberg report that the five
middle market towercos have capacity to
construct only 1,600 of the 3,900 towers between
them. Meanwhile SBA and GTS seem less keen
on bidding for BTS opportunities under the
contractual terms offered by their smaller
competitors, hinting at a potential opportunity for
further new entrant towercos.
NII for sale?
TMT Finance report that NII Group has appointed
following its Brazilian’s equivalent, Cade, green
light on the deal.
Potential dropouts in Oi’s quest for
capital funding
Brazil’s Itaú Unibanco Holding SA is rumoured
to be considering leaving the consortium
of fourteen banks currently involved in the
injection of capital ahead of the Oi-PT merger.
Other financial institutions such as Goldman
Sachs, Banco Bradesco and Citigroup have also
been rumoured to be keen to get out of the deal.
Oi aims at raising between US$2.6bn and
US$3.5bn as part of its plan to merge with
Portugal Telecom.
Oi-SBA 2,007 tower deal completed
Oi and SBA Communications have concluded
their recent tower deal during the first week of
April with SBA acquiring 2,007 towers for US$
696 million. As part of the deal, Oi is entering a
long-term leasing agreement with SBA.
The acquired portfolio has a tenancy ratio of
1.6 per tower and features existing leasing
agreements with all major Brazilian carriers.
For further details of the transaction, check out
the interview with Kurt Bagwell, President –
International for SBA Communications, in issue 6
of the TowerXchange Journal.
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UBS as “an advisor to conduct a strategic review
which could result in a sale of part, or all of the
company.” NII trades as Nextel in Brazil, Mexico,
Chile and Argentina.
Nextel Argentina assessing 4G
opportunities
The Argentinian carrier is currently exploring
the possibility of deploying 4G LTE technology
following its unsuccessful attempt to win 3G
spectrum back in 2012, when the 800MHz and
1900MHZ band auction was called off by the
Argentinian government and frequencies assigned
to state-owned telecom operator Arsat.
Movistar and Claro Ecuador one step
closer to LTE
Ecuador’s government has successfully completed
the first phase of negotiations with Movistar and
Claro Ecuador to award them LTE spectrum before
the end of 2014. A new round of negotiations is
likely to begin after the Easter break.
Currently, CNT is the only carrier in Ecuador that
has been granted a license to offer LTE services.
Viettel to launch in Peru
TeleSemana quote Gonzalo Ruiz Diaz, head of
telecoms regulator Osiptel, as saying that Viettel
will launch on 26 July having been held up with
permitting for the installation of towers. Viettel
was awarded spectrum in the 1,900MHz band in
January 2011
Brazil
Brazil
Brazil
USA
Argentina
Argentina
Peru
18. has appointed advisors to support a possible IPO.
Bloomberg report that Carlyle Group and Axiata
have entered bids for Viom
TMT Finance raises possibility of sale of
Ascend Telecom
Always a good source for deal rumours, TMT
Finance report that another Indian towerco, Ascend
Telecom which owns around 4,500 sites, has been
put up for sale. Ascend is jointly owned by New Silk
Route and TVS Interconnect Systems
Indosat, Axiata and Axis selling 7,500,
8,000 and 1,600 towers respectively in
Indonesia
Having sold 2,500 towers to Tower Bersama in 2012,
TMT Finance reports that Indosat is bringing a
second tranche of 7,500 towers to market.
TMT Finance continues to speculate that XL Axiata
will “hive off around 8,000 towers which could be
worth up to US$1.47bn. STP, Tower Bersama and
Protelindo are all apparently in the running for
the portfolio.” We’re not sure how to marry this
rumor with the launch of Axiata’s towerco edotco,
and their widely rumoured although unconfirmed
launch in Indonesia.
Meanwhile, the same publication suggests Tower
Bersama is closing in on a deal to acquire 1,600
towers from Axis
American Tower considers a bid for
VIOM Networks
Encouraged by the success of the recent spectrum
auction in India, and overdue consolidation in
the MNO category, American Tower “is targeting
to bid for India’s Viom Networks, which will help
it improve its services and lower its costs... AMT
gained 10,000 towers in India with its previous two
purchases, with Viom it could go for consolidating
its assets from all three purchases, consequently
lowering the operating cost,” according to Seeking
Alpha.
Cellular News reports, without citing its source, that
American Tower “is thought to put a valuation on
Viom at around Rs 11,000 crore (US$1.77 billion),
excluding debt, which is estimated at around Rs
7,200 crore. That figure is significantly below what
Viom’s shareholders are understood to value the
company at though.”
Viom Networks, a Tata Teleservices and SREI
Infrastructure joint venture, owns a portfolio
of approximately 42,000 sites in India, boasting
a healthy tenancy ratio of around 2.3 with
over 95,000 tenancies from all the leading
Indian operators. Tata Teleservices account
for approximately 40% of Viom’s revenues,
with tenancies from Bharti Airtel, Aircel, MTS,
Vodafone, Idea, Uninor and BSNL among others.
Meanwhile, Hindu Business Line reports that Viom
True Corporation launches Telecom
Infrastructure Fund
Please forgive TowerXchange picking up on “old
news” but we weren’t covering Asia in late 2013
when, together with SCB Asset Management, True
Group announced the formation of the TRUE
Telecommunications Growth Infrastructure Fund
(TRUEGIF). True Group will transfer to TRUEGIF
6,000 telecom towers (of which 5,845 may be
leased), a core fibre optic grid of 5,112 kilometers
and related transmission equipment, and 1,200,000
ports in the broadband system located in provincial
areas of Thailand
Balitower IPO surges on trading debut
Shares in Bali Towerindo Sentra (Balitower)
surged in it’s trading debut on the Indonesian
stock exchange, raising approximately Rp35 billion
(approximately US$3mn), helping fund the regional
towerco’s expansion plans.
The IPO released 14.7% of Balitower’s paid capital,
88 million shares, priced at Rp400 (US$0.035),
valuing the company at around US$20mn. Shares
rose 50% to Rp600 on it’s March 14 debut, reaching
a high of Rp1,455 rupiah a week later (US$0.13)
before trading was suspended.
According to Balitower filings, the company made
a profit of Rp53 billion in the first nine months of
2013.
In an interview on IDN Financials, Balitower
President Director Jap Owen Ronadhi explained
the company’s growth plan: “we plan to build more
www.towerxchange.com | TowerXchange Issue 8 | XX| TowerXchange Issue 8 | www.towerxchange.com18
Asia News
India
India
Thailand
Indonesia
Indonesia
19. towers, expanding from currently 208 towers to 300-
350 towers. We focus 70% of our development in
the Badung Municipality, which is the tourism area
with high traffic. We will also build in Buleleng and
in Greater Bali.”
“The IPO proceeds were about Rp35 billion, and our
total capex is Rp150-200 billion, funded by internal
cash, IPO proceeds and bank loans”
Asked how he saw the future of the tower industry
in Indonesia, Balitower’s President Director added
“the merger of Axis and XL will automatically
reduce the market, while the strength of the US
dollar hampers operators expansion. However
there is an increase in demand for capacity, for 3G
sites, and by the end of the year operators will start
developing 4G LTE, which will expand our market.”
Mitratel tower sale remains a political
hot potato
Whether a stake in state-backed Telkom Indonesia’s
towerco Mitratel is sold, or whether the company
is listed, remains unlikely to be determined before
Indonesia’s next elections.
Mitratel owns an estimated 3,000 towers, and is
in the process of taking over 14,000 towers owned
by Telkomsel, a mobile phone operator in which
Telkom has a 65% stake
Indonesian towerco IBS plans rights issue
Listed in 2012, PT Inti Bangun Sejahtera has
announced plans for a rights issue of 208mn shares
at Rp500 per share
www.towerxchange.com | TowerXchange Issue 8 | 19| TowerXchange Issue 8 | www.towerxchange.comXX
Indonesia
Indonesia
back to the HQ of Ceragon and resuming as COO.
Trevor Gordon will take over as regional head for
Africa, while Amit Ancikovsky heads up LatAm
and Ram Prakash Tripathi is responsible for Asia.
All change at Telefonica, where COO Jose Maria
Alvarez-Pallete takes operations in Europe
and LatAm; former head of LatAm Santiago
Fernandez Valbuena will become strategy chief
and retain a place on the board. The reshuffle
sees Spain, Brazil and UK CEOs, Luis Miguel
Gilperez, Antonio Carlos Valente and Ronan
Dunne joining Telefonica’s excom.
Millicom will appoint Tim Pennington as their
new CFO in June 2014. Tim moves across from
holding the equivalent position at Cable &
Wireless Communications.
Finally, the restructuring of Airtel Africa has led
to the appointment of VG Somasekhar to lead a
new business unit comprising of Zambia, Congo-
Brazzaville, Malawi, Burkina Faso, Niger, Chad,
Madagascar and Seychelles. Somasekhar had
been MD of Airtel Uganda. Another business
unit comprising Ghana, Kenya, Tanzania, Gabon,
Uganda, Sierra Leone and Rwanda will be led by
Christophe Soulet. The Nigeria and DRC business
units will continue to be led by Segun Ogunsanya
and Louis Lubala. All four business unit heads
will report to Airtel Africa CEO Christian De Faria
Howard Earley has taken over as CEO of Inala.
Howard is well known in the African tower
industry as the former CFO and COO of blue-chip
TI firm Plessey. Howard succeeds TowerXchange
advisory board member Laurentius Human,
outgoing CEO of Inala, who has crossed over to
the investment side of the business with Jabil.
Meanwhile John Earley (no relation!), is moving
Tower People
Howard Earley, CEO, Inala
20. TowerXchange facilitates an open dialogue and shares knowledge between key stakeholders involved in the
transformation of the Latin American telecom tower industry. With carriers actively involved in upgrading their
network to meet growing demand for capacity and tower companies’ ever-increasing appetite to acquire towers,
the industry needs information, transparency and clarity.
The TowerXchange community unlocks priceless insights enabling you to evaluate opportunities across Latin
America for your business, through exclusive interviews, original research and live events.
A unique, invitation-only gathering of the top 200 decision makers
in the Latin American tower industry
Meetup Americas 2014
May 20-22, Rosen Shingle Creek, Orlando, Florida
Co-located with the PCIA Wireless Infrastructure Show
Register online at http://www.towerxchange.com/apply-to-attend. Questions? Call Annabelle on +44 7423 512588
Bronze Sponsor:Silver Sponsor:Gold Sponsor: Co-located with:
Media Partners:Association
Partner:
Featuring a roundtable and a
panel on African towers
Created and hosted by:
Tower Xchange
21. Country Manager, Costa Rica, Continental Towers
< Country focus: Nigeria – Inder Bajaj, CEO, Helios
Towers Nigeria
< Regional focus: Central America - Bill Bates,
Vice President - Business Development, SBA
Communications
12:20 Networking lunch
1:40 Second structured networking roundtable:
< Key tower manufacturing and design requirements
for state of the art project development - Bhaskar
Babu, Marketing Head - Telecom and Structures, Ganges
Internationale
< Country focus: Myanmar - John Stevens, CEO,
Irrawaddy Green Towers
< Saving sharing as a service business model – Pros and
Cons - Emmanuel Jakobson, Vice President Sales, AIO
Systems
< Regional focus: Africa - Chuck Green, CEO, Helios
Towers Africa
< Opportunities for towercos to expand beyond the macro
networks into DAS and small cells - César Peña, Latin
America Sales & Business Development Senior Director,
Mer Group Telecom Division
< Contractual terms that create and destroy value when
negotiating sale and leaseback and BTS programmes -
Andres de Orleans Borbon, CFO, Helios Towers Africa
< How to scale modular hybrid energy solutions for
multiple tenants, unlocking significant opex savings - Dr
Michele Greca, VP and CEO, Ascot International
3:00 Afternoon coffee and networking
3:20 Strategic partners panel part I: the importance
of partner selection for ROI optimisation and opex
reduction
Moderator: Carlos Tilac, COO, Torrecom
Senior representatives from Mer Group Telecom
Division, Ganges Internationale Private, SiteOne and
Acsys will offer their perspective on key factors carriers
and towercos need to consider when selecting their
contractors and suppliers
3:40 Investors keynote panel
Moderator: Marco Cordoni, Senior Partner, Analysys
Mason
Mark Johnson, Managing Director, The Carlyle Group
Ryan Lepene, Managing Director, Peppertree Capital
Zaid Alsikafi, Managing Director, Madison Dearborn
Partners
4:40 Closing remarks from day one
5:00 Close of day one
From 8:00 Registration and coffee
9:00 Welcome and opening remarks
Kieron Osmotherly, Founder and CEO, TowerXchange
9:10 The status of the Central and South American tower
industry and forecasts for the mid-term
Arianna Neri, Head of Americas, TowerXchange
Kieron Osmotherly, Founder and CEO, TowerXchange
9:30 Mobile network operator decision makers panel
Jorge Paniza, CTO, Telefonica Costa Rica, Edgar
Geidans, Group CTO, Trilogy International, Eduardo
Ramirez Palomeque, Infrastructure Director, Iusacell
10:40 Morning coffee and networking
11:00 First structured networking roundtables:
< Country focus: Brazil - Dr Chahram Zolfaghari, CEO,
Brazil Tower Company
< Country focus: Mexico - William Ritchey, President,
IIMT
< Country focus: Chile - Ricardo Loor, COO, Torres
Unidas
< Country focus: Colombia - Eric Ensor, COO, Torres
Andinas
< Country focus: Ecuador - Yamil Franco, Americas
Regional Manager, Leadcom Integrated Solutions
< Country focus: Costa Rica - Federico Lorenzana,
TowerXchange Meetup Americas
Orlando, Florida | 20-22 May 2014
www.towerxchange.com | TowerXchange Issue 8 | 21| TowerXchange Issue 8 | www.towerxchange.com2
Day One | Tuesday 20 May Programme
22. 11:10 Strategic partners panel part II: the importance of
partner selection for ROI optimisation and opex reduction
Moderator: Carlos Tilac, COO, Torrecom
Senior representatives from Leadcom, AIO Systems, HMS
Industrial Networks, Telemisis and Metalogalva will offer
their perspective on key factors carriers and towercos
need to consider when selecting their contractors and
suppliers
11:30 Towerco keynote panel Part I
Moderator: Jonathan Atkin, Managing Director, RBC
Capital Markets
Kurt Bagwell, President - International, SBA
Communications
Jim Eisenstein, Chairman & CEO, Grupo TorreSur
Marc Ganzi, President, Digital Bridge Holdings &
Mexico Tower Partners
Phil Kelley, SVP Corporate Development, Crown Castle
Olivier Puech, CEO Latin America, American Tower
Daniel Seiner, CEO, Torres Unidas
12:30 Networking lunch
1:30 International focus: Africa keynote panel
Inder Bajaj, CEO, Helios Towers Nigeria
Chuck Green, CEO, Helios Towers Africa
Daniel Lee, Managing Director, Intrepid Advisory
Partners
Terry Rhodes, Co-founder & Director, Eaton Towers
Nina Triantis, Managing Director, Global, Head of
Telecoms & Media, Standard Bank
2:30 Strategic partners panel part III: the importance
of partner selection for ROI optimisation and opex
reduction
Moderator: Carlos Tilac, COO, Torrecom
Senior representatives from Ascot, ConnectM, Karam,
Sagemcom and Invendis will offer their perspective on
key factors carriers and towercos need to consider
when selecting their contractors and suppliers
2:50 Afternoon coffee and networking
3:10 Towerco keynote panel Part II
Moderator: Jonathan Atkin, Managing Director, RBC
Capital Markets
Eric Ensor, COO, Torres Andinas
Jose Paz, CEO, Continental Towers
William Ritchey, President, IIMT
Maria A. Scotti, CEO, Torrecom
Dr Chahram Zolfaghari, CEO, Brazil Tower
Company
4:10 Summary and closing remarks from day two
9:00 Opening remarks - Jonathan Adelstein, CEO,
PCIA
9:05 Key challenges and lessons learnt from a Central
American carrier and towerco in South East Asia - an
executive talk
Pat Casey, Group HR Director, Digicel and Kieron
Osmotherly, Founder and CEO, TowerXchange
9:30 Third structured networking roundtable:
< How to survey, evaluate and upgrade towers for
multiple tenants - Gal Barzilai, General Director,
Infracomex (Mer Telecom Mexico Subsidiary)
< Site energy efficiency on single and multi-tenant
sites - Bartek Stelmasiak Candell, Global Key
Account Manager - Telecom Infrastructure and
Energy, HMS industrial Networks
< How to raise capital for tower transactions - Dan
Lee, Managing Director, Intrepid Advisory
Partners
< Control and security issues of co-located sites:
challenges and solutions - David Meganck, COO,
Acsys
< Health and Safety principles in the tower industry
- Todd Schlekeway, Executive Director, National
Association of Tower Erectors (NATE)
10:50 Morning coffee and networking
www.towerxchange.com | TowerXchange Issue 8 | 3| TowerXchange Issue 8 | www.towerxchange.com22
Day Two | Wednesday 21 May Programme
TowerXchange Meetup Americas
Orlando, Florida | 20-22 May 2014
23. Leadcom Integrated Solutions
Marc Ganzi, President, Digital Bridge Holdings and Mexico
Tower Partners
Edgar Geidans, Group CTO, Trilogy International
Chuck Green, CEO, Helios Towers Africa
Mark Johnson, Managing Director, The Carlyle Group
Phil Kelley, SVP Corporate Development, Crown Castle
Dan Lee, Managing Director, Intrepid Advisory Partners
Ryan Lepene, Managing Director, Peppertree Capital
Ricardo Loor, COO, Torres Unidas
Federico Lorenzana, Country Manager, Costa Rica,
Continental Towers
Arianna Neri, Head of Americas, TowerXchange
Kieron Osmotherly, Founder & CEO, TowerXchange
Jorge Paniza, CTO, Telefonica Costa Rica
David Porte, Vice President – International, SBA
Communications
Jose Paz, CEO, Continental Towers
Olivier Puech, CEO Latin America, American
Tower
Eduardo Ramirez Palomeque, Infrastructure
Director, Iusacell
Terry Rhodes, Co-founder & Director, Eaton
Towers
William Ritchey, President, IIMT
Maria A. Scotti, CEO, Torrecom
Todd Schlekeway, Executive Director, National
Association of Tower Erectors (NATE)
Daniel Seiner, CEO, Torres Unidas
Carlos Tilac, COO, Torrecom
Nina Triantis, Managing Director, Global, Head of
Telecoms & Media, Standard Bank
Dr. Chahram Zolfaghari, CEO, Brazil Tower
Company
Jonathan Adelstein, CEO, PCIA
Jonathan Atkin, Managing Director, RBC Capital
Markets
Zaid Alsikafi, Managing Director, Madison
Dearborn Partners
Kurt Bagwell, President – International, SBA
Communications
Inder Bajaj, CEO, Helios Towers Nigeria
Bill Bates, Vice President – Business Development,
SBA Communications
Pat Casey, Group Human Resources Director, Digicel
Marco Cordoni, Senior Partner, Analysys Mason
Andres de Orleans Borbon, CFO, Helios Towers
Africa
Jim Eisenstein, Chairman & CEO, Grupo TorreSur
Eric Ensor, COO, Torres Andinas
Yamil Franco, Americas Regional Manager,
Confirmed speakers include:
www.towerxchange.com | TowerXchange Issue 8 | 23| TowerXchange Issue 8 | www.towerxchange.com4
14 Top Towercos under one roof at the TowerXchange Meetup Americas 2014
24. Delegate List as on 9 May 2014
www.towerxchange.com | TowerXchange Meetup | 11| TowerXchange Issue 8 | www.towerxchange.com24
Accruent: Regional Vice President, Sales
Accruent: Director, Product Management
ACSYS: CEO and Founder
ACSYS: Business Development Director
AIO Systems: VP Sales
AIO Systems: VP Marketing
AIO Systems: Director of Sales - Latin America
AKCP: Vice President, Manufacturing
American Tower: Senior Strategic Implementation Lead
American Tower: Director of New Products
American Tower Company: Chief Executive Officer -
Latin America
Anaysys Mason: Senior Partner
Apollo Solar: CEO
Ascot Industrial: Global Account Key Clients
Ascot Industrial: CEO
AT&T: Area Manager, National Small Cell Business
Development
AT&T: Advanced Technical Support
AT&T: Project Manager
AT&T: Notice to Proceed Manager
AT&T: Central Region Account Manager
AT&T: No job title given
AT&T: Area Manager Network Services RFME
AT&T: RFME
AT&T: No job title given
AT&T: Senior Manager
AT&T: Sr. Technical Program Manager
AT&T Cleartalk: Project Manager
AT&T Mobility: Manager Operations
AT&T Towers: SE Account Manager - DAS & Towers
AT&T Towers: National DAS Tenant Add Area Manager
AT&T/Strategic Sourcing: Director
AuBren DAQS Europe: Managing Director
azeti Networks AG Vice President, Sales Worldwide
azeti Networks AG Head of PreSales/Consulting
Barclays Capital: Managing Director
Berkshire Partners: Managing Director
Berkshire Partners: Advisory Director
BR Towers: Strategic/Financial/Comercial Planning
Exceutive and M&A
Brazil Tower: President
Bright House Networks: No job title given
C-Spire Wireless: No job title given
Carmanah Technologies: Sales Manager - Obstruction
CIG Wireless: CEO
CIG Wireless: CFO
Clean Power Systems: CEO
ConnectM: CEO
ConnectM: COO
Continental Towers Corp: Country Manager, Costa Rica
Continental Towers Corp: Chief Executive Officer
Crown Castle: Director Tower Acquisitions
Crown Castle: President and CEO
Crown Castle: Senior Vice Principal Corporate
Development
Cummins Power Generation: Director - Telecom
Business
Deltanode Solutions AB: Business Advisor
Deltanode Solutions AB: CEO
Digicel: Group Human Resources Director
Eaton Towers: Co-Founder & Director
Eltek: President - Americas Region
FairPoint Communications: Director
FLEXENCLOSURE CEO
FLEXENCLOSURE Sales Director Southern Africa
Fluidic Energy: President Latin America
Ganges Internationale: Head - Telecom & Structures
Gemalto: Director of Business Development Sensor Logic
M2M Platforms
Gemalto: Product Marketing Director
General Communications, Inc.: Director
Globecomm: No job title given
Grupo TorresSur: Chief Development Officer and
Corporate Secretary
Grupo TorresSur: Chairman & Chief Executive Officer
GS Yuasa: Senior Director - Telecom and UPS
Helios Towers Africa: CFO
Helios Towers Africa: Chief Executive Officer
Helios Towers Nigeria: Chief Technical Officer
Helios Towers Nigeria: CFO
Helios Towers Nigeria: Chief Executive Officer
Highline do Brasil: CEO
Highline do Brasil: Director
HMS Industrial Networks Global Key Account Manager
HMS Industrial Networks Business Development
Manager
IIMT: Executive Vice President
Inside Towers: Managing editor
Inside Towers: No job title given
Intelli Site Solutions, SAPI de CV: Co-CEO
Intelli Site Solutions, SAPI de CV: Co-CEO
Intelli Towers: Chief Executive Officer
Intelli Towers: Chief Technical Officer
Intrepid Advisory Partners: Managing Director
Invendis: CEO
25. Delegate List as on 9 May 2014
www.towerxchange.com | TowerXchange Issue 8 | 25| TowerXchange Meetup | www.towerxchange.com2
Irrawaddy Green Towers: CEO
Iusacell: Infrastructure Director
Jefferies LLC: Analyst
KARAM - PN International: General Manager -
International Marketing
Leadcom Integrated Solutions: Americas Regional
Manager
Leadcom Integrated Solutions: Regional Manager
Central America & Caribbean
Leadcom Integrated Solutions: CEO
M2M Spectrum Networks LLC: Senior Director Network
Deployment
M2M Spectrum Networks LLC: SVP Network
Implementation
M2M Spectrum Networks LLC: Deputy Director
Macquarie Infrastructure and Real Assets Inc.: Vice
President
Madison Dearborn Partners: Managing Director
Media Venture Partners, LLC: Analyst
Mer Group Telecom Division: Latin America Sales &
Business Development Senior Director
Mer Group Telecom Division: General Director
Infracomex (Mer Telecom Mexico Subsidiary)
Mer Group Telecom Division: General Manager
Infrastructure BU
Metalogalva: Business Unit Manager - Telecom
Mexico Tower Partners: CEO
Mexico Tower Partners: President
Morgan Stanley: MD, TMT
NAAP Global Solutions: VP Sales and Business
Development
National Association of Tower Erectors (NATE): No job
title given
National Association of Tower Erectors (NATE):
Executive Director
PCIA: Chief Executive Officer
Peppertree Capital: President
Peppertree Capital: Managing Director
Phoenix Tower Industrial: Vice President, Mergers &
Acquisitions
Phoenix Tower International: Chief Executive Officer
Pioneer Cellular: No job title given
Power-One: Product Manager
Power-One: Distribution Sales Manager
QMC Telecom do Brasil: President
Ramboll: Head of Department Masts & Towers
Ramboll: Project Director
RBC Capital Markets: Managing Director
Sagemcom: Energy Solutions Manager
Sagemcom: Area Sales Manager
SBA Communications: Director International Operations
SBA Communications: Vice President, Business
Development
SBA Communications: President, International
Seccional Brasil: Chief Executive Officer
SK Telecom, SK Planet: Board Member
Sprint: Manager, Custom Network Engineering
Sprint: Telecom Design Engineer
Sprint: Project/Program Manager III
Standard Bank: Managing Director, Global Head of
Telecoms & Media
Sunco Energy SL: Telecommunications Director
Tarantula: Executive Chairman
T-Mobile: No job title given
T-Mobile: Sr Manager DAS / SmallCell
T-Mobile: RF Engineer
Telefonica Costa Rica: CTO
Telefonica Ecuador: Gerente de Despliegue de Red
Telemisis: Managing Director
Telemisis: Commercial Director
The Carlyle Group: Managing Director
Time Warner Cable Business Class: No job title given
Torrecom: Chief Executive Officer
Torrecom: COO
Torres Andinas: Chief Operations Officer
Torres Unidas: Chief Executive Officer
Torres Unidas: Chief Operations Officer
TowerCo: CEO
Trilogy International: Group Chief Technology Officer
Trojan Battery: Director
Trojan Battery: Technical Advisor
US Cellular: Mgr. Strategic Sourcing
Verizon Wireless: No job title given
Verizon Wireless: Switch Tech
Verizon Wireless: Site Acquisition Manager
Verizon Wireless: Construction Purchasing Manager
Verizon Wireless: Site Acquisition Manager
Verizon Wireless: Site Acquisition Coordinator
Verizon Wireless: Site Acquisition Manager
Verizon Wireless: Site Acquisition Manager
Vinson & Elkins: Partner
Vinson & Elkins: Partner
Wells Fargo Securities: Analyst
Wells Fargo Securities: Associate
Westchester Services L.L.C.: Director of Real Estate
26. TowerXchange’s unique structured networking round tables
200 Director, VP and C-level Decision makers broken down
as follows:
Mobile Network Operators
Towercos
Investors and Investment Management Advisors
Lawyers and Strategic Consultants
Energy Equipment Providers
OEMs & Managed Service Providers
Static Assets, Access Control & Monitoring and Management
TowerXchange roundtables bring together 8-10 representatives
of different segments of the tower industry ecosystem, brought
together by a common geographical focus or hot topic. There
are 3 roundtable sessions at the Meetup, each new roundtable
“reshuffles” the decision maker-level participants at your table so
you will meet several different prospective partners.
| TowerXchange Issue 8 | www.towerxchange.com26 www.towerxchange.com | TowerXchange Issue 8 | 5
27. Meetup Americas Exhibition
Companies involved in the regional telecom tower industry have a
unique opportunity to be part of the most focused regional gathering
of the year and exhibit in the TowerXchange Latin American
pavilion, placed at the very heart of PCIA’s exhibition hall where 100+
international companies will showcase their solutions to the largest,
most qualified and concentrated audience of tower industry decision
makers in the world.
Discuss your requirements today and find out all the available
options for your participation by contacting Annabelle Mayhew at
amayhew@towerxchange.com or via phone at +44 (0) 7423 512 588.
Contact us today to sponsor or exhibit at the TowerXchange
Meetup Americas 2014.
| TowerXchange Issue 8 | www.towerxchange.com6 www.towerxchange.com | TowerXchange Issue 8 | 27
TowerXchange Pavillion
331131
129
127
228
Keegan
Wireless
230
Food & Drinks
Overhead Door
Overhead
Door
Connections
Cafe
Small Cell Pavillion
Electro
-Wire
623
CommScope
520
Slatercom
421
Amirit
Technologies
423
TE
Connectivity
520/620
Huada
621
Product Showcase
Ericsson 20x20
20x2020x20
C D
A B
CS-SServiceDesk
Food & Drinks
Food & Drinks
226
C Squared
Systems
322
CLC
Lodging
320
Galtronics
221/223
130
128
126
124
122
120
118
116
114
112
110
108
106
104
102
100
430
329 428
327 426
431 530
429 528
427 526
531 630
529 628
527 626
731
729
727
725
723
721
717
715
NATE
713
711
709
707
705
703
701
129
127
228
226
105
103
101
KGP
202/204
Unimar
200
11’ 11’ 11’ 11’ 11’ 11’ 11’
20’
GME
Supply
205
Mosaik
Solutions
203
AFL
201
MaxCell
304
SBA
Communictaions
Hughey &
Phillips
302
CDMI
300 401
Fibrebond
405
Valmont
Site Pro 1
403
Valmont
Structures
401
MaxCell
304
Hughey &
Phillips
302
CDMI
300
Terracon
505
Nello
Corp.
503
Deltanode
501
Sabre
Industries
604
Graybar
602
3Z
Telecom
600
ITL, LLC
605
Skyhawk
601
704
603
Accruent
700/702
117
115
113
214
Eastpointe
216
212
TUFTUG
217
Lattice
213
Amphenol
316/314
TestEquity
211
Ehresmann
Engineering
209
tarantula
308
Trans-
American
308
111
109
210
Cellphone
Mate
208
722622523323
Wideband
Antennas
422/420
Shive-
Hattery
321
522
720
TWR
Lighting
615
716617
714
BB&T
Atlantic Risk
515
TP Electric
616
Dynamic
Enviromental
517
EMSS
614
Oldcastle
609
710
PCTEL
611
OTL Solution
708
Henkles &
McCoy
610
Fidelity
National
511
Tectonic
Telecom
509/508
631
529
527
228
228
226
ENTRANCE ENTRANCE
TowerXchange Pavillion
331
131
129
127
228
Keegan
Wireless
230
Food & Drinks
Overhead Door
Connections
Cafe
Small Cell Pavillion
EAmirit
Technologies
CS-SServiceDesk
Foo
Food & Drinks
226
C Squared
Systems
130
128
126
124
122
430
Azeti
KARAM Naap
TowerXchange
Leadcom Ascot
Mer Group
Telecom
Division
Invendis
Metalogalva
Sagemcom
AIO
Systems
HMS
Industrial
Networks
Ganges
Int.
ACSYS
Telemisis
329 428
327 426
431 530
429 528
427 526
531 630
529 628
527 626
129 228 622523323 522
70% SOLD
GS Yuasa
28. www.towerxchange.com | TowerXchange Issue 8 | 7
Tower Industry Value Chain
Backhaul, FTTT, Core Network Active equipment
Tier 1 OEMs
Mobile Network Operators
Investors: private equity, debt finance, infrastructure funds
Law firms
Group level strategists
C-suite & network planners at local OpCos
Outsource
to
Strategic consultancy
Due diligence
Demand forecasts
Valuations
Independent Towercos
Sell co-locations
Upgrade capacity
Build-to-suit
Maximise uptime
Reduce opex
Invest in network
Transfer assets to
Construction services
Turnkey infrastructure rollout
Manufacture of steelwork
Import, customs & delivery
Leasing & permitting
Installation of towers
Upgrades for capacity
O&M services
Dynamic assets
Energy equipment
Diesel genset
Solar
Wind
Fuel cell
Batteries
Rectifiers
Inverters
Line conditioning
PIUs
Air conditioning
Lightning protection
Controller
Voltage regulator
Managed service providers
ESCOs
Static assets
Towers & masts
Shelters
Brackets
Enclosures
Lighting
Fencing
O&M services
Maintenance
Staffing
Spare parts
VMI?
Refueling
Energy as a service
Monitoring &
management
RMS
Intelligence/analysis
Site management
Job ticketing
Asset lifecycle platform
Access control
Subcontract
Microgeneration
Community power
Subcontract
or in-house
Outsource
to
Somebecome
towerco
Investment management advisors
TowerXchange serves the Latin American tower
community along two intersecting axes. On a
horizontal axis we facilitate relationships between
MNOs, towercos, investors and their advisers, aiding
the structuring of deals and the transfer of assets.
On a vertical axis, we examine the impact on, and
opportunities for, the passive infrastructure supply
chain, whether they sell to MNOs, towercos or
through OEMs.
How TowerXchange ensure an audience
of decision makers
TowerXchange successfully launched its first live event
for the emerging market telecom tower industry in
2013. Since then, we have gained a strong reputation for
delivering a high quality, meaningful platform for our
selected audience of tower professionals.
The TowerXchange Meetup is exclusively for Director, VP
and C-level decision makers. If registrants are substituted,
we will only accept replacement registrants of equal or
greater seniority than those pre-approved.
Through our passive infrastructure focused journal
publication and research, TowerXchange have cultivated
relationships with 4200 (at time of press) decision makers
active in the Latin American tower industry, 85% of
whom are at Director, VP or C-level.
By co-locating our event with the highly successful North
American PCIA’s 2014 Wireless Infrastructure Show, we
will offer our audience a unique chance of exposure to
the most mature tower industry in the world and its poll
of top telecom professionals.
Who will you meet
| TowerXchange Issue 8 | www.towerxchange.com28
29. 28 guaranteed, qualified introductions‘How to’ advice from proven
practitioners
Your trusted community host and
commentator
Dedicated to passive infrastructureDecision makers only An aid to shortlisting / receiving RFPs
4 structured networking sessions assemble participants
in groups of 8, brought together by a common regional
or topic matter interest, and arranged so each group
includes 2 MNOs, a towerco, investor, advisor, OEM or
managed service provider, energy equipment and a static
asset or RMS manufacturer
The main TowerXchange Meetup is supplemented by
‘how to’ workshops, tackling topics from how to structure
a tower transaction to the implications of 4G, while the
business leaders from MNOs, towercos and investors will
debate hot topics in unmissable panel discussions
The TowerXchange Meetup draws on the credibility,
original research and comprehensive relationships with
Latin American telecoms infrastructure decision makers
who read our renowned journal
While other events increasingly focus on devices and VAS,
TowerXchange maintains a laser-beam focus on passive
infrastructure
Access to the TowerXchange Meetup is by invitation-
only. Our 200 attendees are vetted for decision making
authority (Director, VP and C-level only), and the ratio of
buyers to sellers is carefully managed
Strategic Partners Panels: dynamic panel sessions offering
an opportunity to key solution providers and king buyers
to interact. A unique way to accelerate partner selection
due diligence and shortlist RFP recipients
What makes TowerXchange Meetups unique
Join the TowerXchange community at our exclusive executive retreat in Orlando where our unique, networking-driven “unconference” will facilitate tower
transaction deal-making, accelerate buyers’ partner selection due diligence, and provide passive infrastructure equipment and service providers with dozens of
highly qualified new prospects.
| TowerXchange Issue 8 | www.towerxchange.com8 www.towerxchange.com | TowerXchange Issue 8 | 29
30. Respecting confidentiality yet revealing
what’s really going on
Enjoy networking with 200 VIPs
Tower transactions are highly confidential, so the
TowerXchange Meetup is held under “Chatham House
Rule” and our unique roundtables, private meeting space
and informal receptions will enable you to discreetly
discuss and advance strategic partnerships
Thanks to the co-location with US’ PCIA, our Meetup will
be hosted at the Rosen Shingle Creek in Orlando, Florida.
Our ideal location is just a short distance to a variety of
Orlando’s best attractions, restaurants, shopping and
entertainment venues and will be the perfect address for
three days of intensive learning and networking.
The must-attend event for tower industry
decision makers
Attending, exhibiting or sponsoring our Meetup Americas represents a unique opportunity to be exposed
and interact with the entire value chain of Latin American tower professionals in addition to key
professionals from the leading North American tower market.
Our attendees will enjoy three days of knowledge sharing thanks to our closed-door, highly interactive
Meetup format, which will focus purely on the Latin American tower industry. At the same time, our
audience can experience the advantages of meeting and gathering with over 2000 attendees joining the
Wireless Infrastructure Show from all over the world in the networking and exhibition areas.
For our exhibitors, “all booths are created equal” at TowerXchange – you won’t be swallowed up into the
shadow of the huge exhibits of deep-pocketed big brands – at TowerXchange everyone gets the same size
turnkey booth, which means vendors are shortlisted to receive RFPs purely on the basis of their ability to
TowerXchange
Passive
Infrastructure
footprint
Futurecom:
5% passive infrastructure
Mobile World Congress:
1% passive infrastructure
Devices & VAS footprint
Mobile World Congress footprint
Futurecom footprint
TowerXchange: 100% passive
infrastructure
www.towerxchange.com | TowerXchange Issue 8 | 9
meet buyer requirements. The
TowerXchange Meetup has been
designed to incur low logistics
costs – there’s no need to ship
anything to the event – all the
materials you will need will fit in
the hold of the plane you fly in on.
Futurecom and Mobile World
Congress are great events for
general networking, but they
increasingly focus on devices
and VAS, not towers and
passive infrastructure. The
TowerXchange Meetup is 100%
devoted to passive infrastructure.
It’s 100% decision maker level:
only Director, VP and C-level are
permitted to attend. And our ratio
of buyers to sellers is carefully
controlled.
| TowerXchange Issue 8 | www.towerxchange.com30
31. TowerXchange Pavillion
331131
129
127
228
Keegan
Wireless
230
Food & Drinks
Overhead Door
Connections
Cafe
Small Cell Pavillion
Electro
-Wire
623
Amirit
Technologies
423
CS-SServiceDesk
Food &
Food & Drinks
226
C Squared
Systems
322Galtronics
130
128
126
124
122
430
329 428
327 426
431 530
429 528
427 526
531 630
529 628
527 626
129 228 622523323
Wideband
522
631
529
527
TowerXchange have co-located our Latin
American Meetup with the premier national
event for mobile network solutions-produced
for the industry, by the industry; The Wireless
Infrastructure Show, organised by the PCIA.
Your registration for the TowerXchange Meetup
Americas includes a full access pass to The
Wireless Infrastructure Show, which means
that throughout the event you can choose to
attend sessions in the TowerXchange Meetup
or you can visit The Wireless Infrastructure
Show opening reception, general and tracked
sessions and keynotes.
The Wireless Infrastructure Show attracts
more than 2,000 thought leaders and
industry innovators from across the wireless
infrastructure ecosystem. Network within
the primary forum for infrastructure
owners and operators, carriers, investment
community representatives, government
officials, equipment manufacturers and service
providers, and other integrally involved in
shaping the future of the industry. This market
defining Show features over 35 lectures,
panels, round-tables, and special events on
a comprehensive selection of industry topics
taught by leading industry experts.
The TowerXchange Pavilion is located on The
Wireless Infrastructure Show exhibition floor,
so you have access not just to our 18 Latin
America-focused exhibitors, but over 100
exhibitors showcasing all of the most relevant
infrastructure development tools, platforms
and services helping to drive the industry
forward across North, Central and South
America!
www.towerxchange.com | TowerXchange Issue 8 | 31| TowerXchange Issue 8 | www.towerxchange.com10
PCIA Wireless Infrastructure Show
Your TowerXchange Meetup Americas registration includes a full access pass
to the co-located PCIA Wireless Infrastructure Show!
Job functions at The Wireless Infrastructure Show: Industry composition at The Wireless Infrastructure
Show:
C-Level
Engineering/Technical Operations
Investor/Financial Analyst
Business Development
Infrastructure Providers
Carriers
Professional Services
Consultant
Legal
IT
Financial
Other
28%
17%
8%
30%
10%
4%
3%
40%
20%
20%
10%
10%
32. Our sponsors
www.towerxchange.com | TowerXchange Issue 8 | 11| TowerXchange Issue 8 | www.towerxchange.com32
Site One
SiteOne is an innovative Telecom site management solution based on a unique Intelligent
Site Management System to monitor and manage remotely distributed sites. By installing
the azeti NG at the site to be monitored/controlled, you can continually watch over IP based
equipment and other operational technologies such as access control, energy consumption
or environmental parameters. This combination provides a complete view of all the critical
elements installed on the site, while allowing operators to not only monitor performance
but also to execute and program intelligent actions based on multiple scenarios. SiteOne
adresses some of the most common remote site issues including theft of equipment,
inefficient energy usage, unauthorized entry, HVAC control, lack of real-time data or general
performance monitoring.
www.azeti.net
Acsys
Acsys is a global leader in tower access control
solutions. Our patented, military-grade solutions
based on our unique, programmable locks and
keys facilitate intelligent access control while
avoiding the bottlenecks associated with wired
systems, including lengthy and expensive
installation, maintenance, external power
dependency, etc.
European-rooted, with an innovative team from
around the globe, and the benefits of China-
based production, Acsys stays at the forefront
in designing cutting-edge security and staff
management solutions at a competitive price.
World unique solutions like our Code Generating
System are changing the face of tower access and
are utilized by many of the industry’s biggest
names.
www.acsys.com
Silver Sponsor:Gold Sponsor:
33. Our sponsors
www.towerxchange.com | TowerXchange Issue 8 | 33| TowerXchange Issue 8 | www.towerxchange.com12
Mer Group Telecom Division
Mer Group Telecom Division provides end-to-end Wireless
Infrastructure Turnkey Solutions – from network planning,
site design and provision of towers, to site construction,
equipment installation, network optimization and
maintenance. Combining cost effectiveness, short lead times
and advanced engineering techniques, we are strongly
committed to client satisfaction. With a highly developed
logistics chain, advanced tower manufacturing facilities
and an extensive network of warehouses, our solutions are
flexible and scalable, providing measurable benefits for
customers. Our strong presence in Latin America enables
us to leverage the combined in-depth regional knowledge of
local partners with our industry acknowledged engineering
expertise for our customers’ benefit.
The division leverages its proven global track record,
comprehensive knowledge and accumulated expertise to
seamlessly deliver technologically innovative and best-of-
breed solutions including M2M enablement and vertical
market applications, mobile financial services, cloud billing,
MVNO enablement, as well as on/off board and remote/
contactless payment solutions for public transport operators.
www.mer-group.com/solutions/wireless-infrastructure
Gemalto
Gemalto (Euronext NL0000400653 GTO) is the world
leader in digital security with 2013 annual revenues
of €2.4 billion and more than 12,000 employees
operating out of 85 offices and 25 research and
software development centers, located in 44
countries.
In Machine-to-Machine (M2M), Gemalto’s Cinterion®
modules provide connectivity to millions of devices
worldwide. Our SensorLogic M2M platform is a
device-agnostic platform, making the integration
of diverse devices and software applications simple
and straightforward. SensorLogic provides data
management, device management, and application
enablement for remote monitoring and control
solutions. Our solutions are trusted by MNOs and
governments around the world.
www.gemalto.com
ConnectM
ConnectM is a leading, global Machine-
to-Machine (M2M) Technology Solutions,
Business Intelligence (BI) and Services
Company headquartered in Bangalore, India.
ConnectM Tower Remote Management
Solution (TRMS) is used at around 5000
Towers in India, 4500 Towers across 9
countries in Africa and in South East
Asia. TRMS is used for cell tower passive
infrastructure management that enables real
time monitoring of all the information from
the remote sites and helps field operations
team to manage the assets efficiently. The
solution is designed to help global cellular
tower operators to achieve higher uptime
with lower cost of operations.
www.connectm.com
Bronze Sponsor:Silver Sponsor: Silver Sponsor:
34. Our sponsors
www.towerxchange.com | TowerXchange Issue 8 | 13| TowerXchange Issue 8 | www.towerxchange.com34
Invendis
Invendis Technologies India Pvt. Ltd. started in 2007 with more
than 100 years of experience in Telematics. Today, we are global
leaders in the business of Remote Monitoring of Telecom Towers.
Invendis designs and delivers technology-enabled business
solutions helping Telcos & Towercos offer uninterrupted services
to their clients. Invendis also provides a range of Remote
Monitoring & Energy Optimization services by leveraging our
domain and business expertise.
Our offerings span front end equipments, sensors, transducers,
business applications, systems integration, product engineering,
Installation, maintenance, 24X7 Global Monitoring & IT
infrastructure services.
Invendis pioneered customizable Front End Monitoring &
controlling equipments, which helped Towercos to roll out
Monitoring & Energy optimization solutions in shortest possible
time.
Invendis has a global footprint with over 25,000 installations
spread across Asia, Africa & Europe.
Bronze Sponsor:
www.invendis.com
AIO Systems
AIO Systems is a solution provider of next generation
of remote management, monitoring and control
systems for critical unmanned sites. Offering
customized infrastructure management solutions,
AIO’s products are designed for telecom, power and
water utilities, Oil & Gas industry, and others.
AIO’s total site efficiency solution offer ~34% OPEX
reduction to telecom tower operators by reducing
power and diesel consumption, preventing theft and
loss of fuel and equipment, and allowing them to
manage every asset and every tenant individually.
Our unique controllers and peripheral devices
allow for a fully integrated remote site security,
which includes site surveillance and access control,
perimeter security, CCTV, active security elements
and more.
AIO Systems manages a modular configuration fit for
the clients’ needs, in full automation, and providing
timely alerts via a variety of communication
channels.
HMS Industrial Networks
HMS Industrial Networks is the leading
independent supplier of products for
industrial communication and remote
management. Products are marketed under
the brands Anybus®, IXXAT and Netbiter®.
Headquartered in Halmstad, Sweden,
HMS is represented by branch offices in 10
countries plus distributors in more than 50.
HMS employs over 350 people and reported
sales of 60+ million EUR 2013.
Telco site support equipment has become
smart, which offers the opportunity to have
full remote control of all support equipment
on Radio and Core sites and benefit
from reducing the OPEX without major
investments. With the Netbiter® concept
we have developed a vendor independent
solution that fits into all kind of systems
and takes care of all hassles with different
communication protocols, different sizes of
diesel tanks, tampering etc.
Bronze Sponsor:Bronze Sponsor:
www.aiosystems.com www.hms.se
35. Our exhibitors
www.towerxchange.com | TowerXchange Issue 8 | 35| TowerXchange Issue 8 | www.towerxchange.com14
Telemisis
Telemisis manufactures the SitePro®
system for remote monitoring
and automation solution for all
business sectors; our specialisation
being mobile operators and
tower owners. We have delivered
full site management systems,
including power optimisation, fuel
management, electricity metering,
environmental management and
machine/equipment control in harsh
and demanding locations since 2000.
Telemisis manufactures the
industry’s smallest, most flexible
and cost-effective remote telemetry
node “SiteNode®”. SiteNode®
units provide interfacing and
data collection capabilities from
a wide range of standard devices
and sensors that may already be
deployed or will be added. Coupled
with Telemisis’ back-end server
systems we offer standard or
bespoke solutions.
www.telemisis.com/products
Ganges International Private Ltd.
GIPL (Ganges Internationale Pvt Ltd),
started in 1991 manufactures and
supplies Tower for Telecommunications,
Windmills, Power Transmission &
Distribution and Railway Electrification.
GIPL has a reputation for timely delivery,
quality and total reliability of tower
supplies. GIPL’s team of committed,
skilled and experience professionals will
oversee the A-Z of your tower supplies.
GIPL has a production capacity of 50,000
MTPA (Metric Tons Per Annum) and
galvanising capacity of 54,000 MTPA.
Expertise:
<Tower design, Manufacturing & Supply
<100% own manufacturing for all
products <ISO 9001: 2000 certified
<We provide all types of Towers
Products:
<Poles–3m to 9m <Roof Top Towers–9m
to 30m <Ground Based Tower/Green
Field Tower 20m to 100m <Rapid
Deployment Towers & Structures
<Palisade Fences
www.gangesintl.com
Metalogalva
TELECOM TOWERS MANUFACTURER
Quality products at fair prices. Company
with 42 years experience. Young
and flexible team. 400 employees; 30
engineers. 100 000 tons galvanizing
capacity (year). 14 welding and plasma
robots. 6.6M€ Investment on new
equipments.
Qualifications:
<QUALITY MANAGEMENT SYSTEM
ISO 9001<RDI MANAGEMENT
SYSTEM CERTIFICATE NP 4457
<ENVIRONMENTAL MANAGEMENT
SYSTEM ISO 14001 <MANAGEMENT
SYSTEM CERTIFICATE
OCCUPATIONAL HEALTH AND SAFETY
OHSAS 18001 <SPECIAL CERTIFICATION
FOR GALVANIZATION for German Norm
DASt - GUIDELINE 022
Verification:
<QUALIFICATION OFMANUFACTURES
TO WELD STEEL STRUCTURES
according to DIN 18800-7 Level “E” <EC
CERTIFICATE FACTORY PRODUCTION
CONTROL (FPC) EN 1090 - 1/2 - EXC3
www.metalogalva.pt
Our sponsors
Vinson & Elkins RLLP
Vinson & Elkins is one of the oldest and largest
international law firms, with approximately
700 lawyers located in 16 offices around the
world.
Our global telecommunications team
has extensive experience advising on
international telecoms and telecoms
infrastructure transactions. We have
extensive industry experience, advising on
telecoms transactions in numerous countries.
Our telecommunications advice includes
acquisitions and disposals, debt and equity
financing, infrastructure development,
operational arrangements, regulatory matters
and dispute resolution.
We also have significant experience in the
negotiation and drafting of sale and purchase,
debt and equity financing, master lease, build-
to-suit, site management and service level
arrangements; and have played a prominent
role in complex fibre transactions.
www.velaw.com
Bronze Sponsor:
36. Our exhibitors
www.towerxchange.com | TowerXchange Issue 8 | 15| TowerXchange Issue 8 | www.towerxchange.com36
Ascot
MODULAR & FLEXIBLE ENERGY
SOLUTION designed for INDEPENDENT
TOWER OPERATORS, who enter in a
multi-tenancy agreement with different
Operators
ASCOT, leader in Hybrid Solution, has
studied and developed a modular &
Flexible Solution designed to provide a
smart and flexible power solution with
Minimum Initial Capex, in the same
time, to be able to expanded gradually in
conjunction with the acquisition of the
tenancy agreement
The Modular DC-HPU is suitable to power
from one to three BTS of up to 2KW, it has
an engine capability of supplying power
up to three banks of batteries, so the main
change to accommodate multiple tenants
is to add extra battery stacks. We also
enable metering to bill each tenant for
their own energy consumption.
www.ascotinternational.com
Sagemcom
Sagemcom is a French high-
technology group with an
international dimension.
Sagemcom concentrates expertise
in telecom and energy solutions
enabling the supply of customized
connected systems to utilities,
telecom operators and services
operators worldwide.
The Networks & Systems
department offers highly efficient
and innovative solutions for
Energy & Site Monitoring,
Green Energy production
& optimization, Radio Site
construction, Optical fiber
rollout, Telecom equipment and
associated services.
Sagemcom employs 4,200 people
on five continents, with a revenue
of around 1.3 billion euros
www.sagemcom.com
Leadcom
Leadcom Integrated Solutions Ltd. is
an international leading provider of
telecommunication network and infrastructure
deployment services and solutions. We combine
extensive global experience, high level of
engineering, project management and the
experience. Leadcom successfully performed
projects in all the Americas countries, our
current footprint is covering over 10 countries
in Americas, Leadcom can easily mobilize
experienced resources to provide services in any
given country.
Acting as a System Integrator, Turnkey Provider
and Value Added Reseller, we provide a
comprehensive service offering aimed at major
global and local telecom operators, towercos,
vendors and large enterprises. Our service offering
includes design, engineering, implementation of
mobile telecommunication infrastructure as well
as vendor-independent managed services provider
– focusing on reliability, efficiency and OPEX
reduction for our customers
www.leadcom-is.com
Karam
KARAM specializes in field of Fall
Protection & manufactures the highest
quality equipment, leading the way
with innovative products & solutions
for safe working at height.
Our complete vertically integrated
manufacturing set-up is spread over
a span of around 325,000 square feet
area with work force of above 1500
highly skilled people.
KARAM provides a range of Solution to
the user working at Height on variety
of towers, masts, monopoles and lattice
structures that are used in Telecom
industry.
Our commitment to quality is
reaffirmed by our ISO 9001-2008
certification. All our products are
certified as per EN also meets American
& other International standards.
www.karam.in
37. Our exhibitors
www.towerxchange.com | TowerXchange Issue 8 | 37| TowerXchange Issue 8 | www.towerxchange.com16
With almost 40,000 African towers set for transfer from operator-captive to independent
towercos, and over 25,000 African towers already owned or operated by towercos, there has never
been greater interest in African towers.
The TowerXchange Meetup facilitates dialogues between operators, towercos, investors and
suppliers by using small group, round table sessions dedicated to key specific countries, or to key
financial and operational topics, enabling YOU to connect with the top 250 decision makers in
African towers.
The return of TowerXchange’s unique, invitation-only gathering of the
top 250 decision makers in the African tower industry
Meetup Africa 2014
Monday October 20 - Tuesday October 21
Gallagher Convention Centre, Johannesburg
To discuss your participation, contact Annabelle on +44 7423 512588 or email
amayhew@towerxchange.com
GS Yuasa
GS Yuasa is a Japanese company formed
in 2004 with the merger of two large 100
year old battery manufacturers, Japan
Storage Battery and Yuasa. At US$3.2B
in sales, GS Yuasa is one of the worlds
largest battery manufacturers.
GS Yuasa manufactures a full line of
technologies including lithium, lead
acid, nickel metal hydride, and nickel
cadmium for the automotive, industrial,
and specialty battery markets. In North
America GS BATTERY (U.S.A.) INC. is a
major supplier to the telecom industry.
With 36 affiliates in 16 countries,
GS Yuasa has a worldwide presence
operating under the GS Yuasa, GS, and
Yuasa brands.
www.gs-yuasa.com (GS YUASA)
www.gsbattery.com (GS Battery USA)
38. Your TowerXchange Meetup Americas registration includes a full access pass to the co-located PCIA Wireless Infrastructure Show!
Delegate Registration
TowerXchange Meetup Americas 2014, May 20-22, Rosen Shingle Creek, Orlando, Florida
For BACS payment, please remit to:
Site Seven Media Ltd
Bank name: Lloyds TSB
Sort code: 30-90-89
Account number: 21593660
I agree to the terms of this registration Date
For IBAN payment, please remit to:
Site Seven Media Ltd
Bank name: Lloyds TSB
Swift /BIC: LOYDGB21256
IBAN: GB29 LOYD 3090 8921 5936 60
The following terms and conditions apply:
< Site Seven Media reserves the right to refuse admission to the event
if full payment of the Registration Fee has not been received.
< In the event of the Site Seven Media cancelling the TowerXchange
Meetup Americas 2014, the parties agree that Site Seven Media
will offer to transfer the registrant’s attendance of the Event to
an acceptable alternative event. If Site Seven Media cannot offer an
acceptable event, we will refund the Registration Fee to the Client
in full.
< Substitution policy: you may substitute subscribers registered
delegates for colleagues, as long as alternate attendees are also
Department Heads, Director, VP or C-level Regrettably no
cancellations can be accepted.
Payment terms: Within 14 days of receipt of invoice, or in advance of the event, whichever comes first.
Payment per person
Registration Details
Discount Codes
Carriers
Government
Investors
Towercos
PCIA Members PCIA Non-Members
Company Name:
Delegate 1 Name: Delegate 1 Email:
Delegate 2 Name:
Address:
Tel:
Delegate 1 Email:
PO Number:
Package Description
Vendors
Special rates are available for full time employees of towercos, carriers,
government and regulators ONLY. Contact amayhew@towerxchange.com to
request a discount code.
Package description: TowerXchange Subscription and Delegate Pass for
Meetup Americas 2014. Package includes daytime catering, participation in 3
round table sessions, after hours networking receptions. Package does NOT
include accommodation or evening meals.
Note that delegates must be Department Heads, Director, VP or C-level, unless special permission
is granted. Companies are also restricted to a maximum of 2 delegates unless sponsoring or unless
special permission is granted – contact amayhew@towerxchange.com if you wish to apply for 3 or
more passes or for an exception to our Director, VP or C-level rule.
Discount Code:
Free
$1500
$1500
$1500
$3000
Free
$1575
$1575
$1575
$3150
Invoice address & payment contact (if different):
Register at www.towerxchange.com/apply-to-attend or complete, scan and email this form to amayhew@towerxchange.com
39. An introduction to towerco
business models and tower
transactions
EY define the three types of towerco business model
www.towerxchange.com | TowerXchange Issue 8 | 39| TowerXchange Issue 8 | www.towerxchange.comXX
We are delighted to be contributing to
TowerXchange, and the emerging market tower
industry in general, through a series of articles
where we, EY, will share insights gained from
our experience on transacting in towers and
particularly in Africa.
The first article in the series is intended to be a
‘Tower transactions 101’, focusing on the current
towerco business models in the market, types
of transactions, towerco economics as well as
outlining a glossary of terms and KPIs commonly
used in the industry. Subsequent articles will
cover areas such as data preparation, diligence,
commercial considerations, valuation approaches,
structuring transactions, exit considerations and
our views on the future of infrastructure sharing.
Towerco business models
Broadly speaking there are three types of business
models for a towerco, which differ in value
proposition to the towerco, and thus impact the
entire investment cycle we are currently seeing in
the market. Our commentary excludes the building
of sites on behalf of an MNO when there is no
ongoing role post construction as a towerco model,
as this essentially represents a pure construction
activity – rather than a true towerco business
model.
The first model involves managing and
maintaining tower sites for an MNO, referred
to as ‘Managed Services’. Under this model the
towerco has no ownership in the underlying site
and generally provides services on a simple cost-
Justin Prichard, Director - Lead Advisory,
Transaction Advisory Services, EY
Read this article to learn:
< The three types of towerco business models and two types of sale and leaseback transaction structure
< The natural limits on per tower valuations and leaseback rates
< The economics of a single site
< How towercos create value through co-location sales and energy opex reduction
< A glossary of tower industry terms and KPIs
Keywords: How to Guide, Towercos, Managed Services,
Strategic Consultancy, Deal Structure, EBITDA, Tower Cash
Flow, Rental Rates, Valuation, Due Diligence, Opex Reduction,
Tenancy Ratios, Co-locations, Build-to-Suit, Business Model,
Site Level Profitability, KPIs, Sale & Leaseback, Operational
Lease, Africa, Infrastructure Sharing, Ernst & Young
At EY, we continue to be at the forefront of transactions in the
African tower market, successfully completing nine deals on the
continent to date and advising on a host of others. We provide our
clients the full range of advisory services to ensure a successful
transaction from lead M&A advice to commercial, financial
and tax due diligence and tax structuring. Our core telecom
infrastructure team is based in the UK, drawing on an extensive
and specialised network of offices in 33 African countries with
5,500 professionals to ensure that we provide our clients with the
best advice possible.
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plus arrangement. There are ways to structure
these agreements to incentivise the towerco to
reduce costs, for example the MNO sharing the
savings benefit with the towerco, but the Managed
Services model is primarily used in markets where
operations can be difficult and MNOs would prefer
to outsource operations even if costs are slightly
higher.
The second model is referred to as a ‘Management
and Marketing’ model, which has its roots in the
Managed Services model but, where the towerco
has the right to market the sites to other MNOs
and receive all or part of the co-location revenues
generated from such additional tenants. The larger
the number of co-locators, and the larger the share
of the co-location revenues the towerco receives,
the greater the value proposition to the towerco
and, thus, the larger cash savings a towerco is
able to offer to an MNO. Under this model, there
is no transfer of ownership of the sites and hence
a towerco does not pay for the site. However it is
common for there to be a commitment to invest
in the passive network, such as the site power
solution.
The third and most common model is the ‘Own
and Operate’ model, whereby the towerco owns
all (or part) of the infrastructure on a site and
leases space on it to an MNO. The towerco either
builds the infrastructure for, or acquires it from,
an MNO in a sale and lease back transaction.
Towercos will generally require a track record
of operations before an MNO will be confident to
enter into a sale and leaseback transaction with
Figure 1: Overview of EY presence in Africa
them on a significant number of sites, and as such
it is common for towercos to start by building
the infrastructure in a particular market before
growing through acquisition.
To provide a fuller understanding we focus on the
‘Own and Operate’ towerco business model because
it is both the most common business model in the
market and creates the most value from a towerco /
infrastructure investor point of view (and therefore
generally delivers the most value to an MNO via a
sale and leaseback transaction).
In Africa, the most common infrastructure sold
by MNOs in tower transactions is termed “passive
infrastructure”, and represents the land (or land
lease), the tower / mast, power solution and the
bricks and mortar present on the site. An MNO
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will retain ownership of its ”active infrastructure”,
being the antenna, BTS / node B, BSC / RNC and the
connection to the backhaul /core network.
In a typical tower sale and leaseback transaction,
the MNO will sell its passive infrastructure
(transferring responsibility of the relevant expenses
and maintenance capex to the towerco) and agree to
a lease back rate, or use fee, for the space on the site
that its active equipment occupies. The two most
important (inter-related) parameters of any sale and
leaseback transaction are therefore: (i) the value
paid by the towerco to the MNO for the site; and (ii)
the lease back rate paid by the MNO to the towerco
- the higher the leaseback rate paid by the MNO,
the higher the value of the site. Therefore, seeking
to compare sale and leaseback transactions when
only one of these parameters is known (usually
site value) is not particularly meaningful, and is
the reason why we see such a range of per tower
valuations in sale and leaseback transactions.
This relationship has led to two types of sale and
leaseback transactions. The first being where the
MNO sets a lease back rate and bidders offer as
high a valuation as possible, with the second being
where the MNO sets the value it wants to raise and
bidders offer as low a lease back rate as possible.
Some transactions in the past have not specified
either but this leads to difficulty in comparing bids
and is now less common.
There are, however, natural limits to both the
per tower value and lease back rate in tower
transactions, with MNOs generally reluctant to
sell below book value to avoid the need to record
a loss. Conversely, if the lease back is materially
higher than the MNOs total cost of ownership
(TCO) of running the site there is a danger that the
transaction will be viewed as a financial instrument
impacting the MNO’s existing debt and therefore
its covenants and gearing. Working within these
boundaries, it is understandable that MNOs do not
want a tower transaction to be materially dilutive
from a future EBITDA / cash flow perspective. As
such, the desired lease back rate tends to be the
same or less than the operating expenses / TCO per
site.
What does this mean for towercos?
On day 1 of a sale and leaseback transaction, the
net cashflow generated on a per site basis can
be zero or negative unless there is a significant
number (and value) of existing co-location tenants
on the portfolio of sites. Consequently, to deliver
the returns required by investors, and priced into
the business plans underpinning the offers made in
the sale and leaseback transactions, towercos will
need to focus their time on: (1) increasing revenue
through additional tenants; and (2) reducing
expenses (primarily power). This is why you see so
much emphasis placed on understanding future
demand for sites (driven by increasing mobile
penetration and technology changes particularly)
and alternative solutions to the diesel generators
that currently power so many African mobile sites.
In our subsequent articles we will dive deeper
into transacting in towers to provide more insight
for MNOs, towercos, investors, advisors and other
stakeholders in the industry
Figure 2: Single site economics - African
‘Own and Operate’ Towerco model
Key:
Towerco owned
MNO owned/shared
Antenna
BTS/Node B
BSC/RNC
Backhaul to
core network
(via fibre or
microwave)
Power
solution
Land
Tower/
Mast
Single site economics - example
Revenue
Expenses
EBITDA
Tower cash flow
Tenant(s) – MNO, WIMAX, Broadcast etc
Power – diesel
Power – electricity
Ground rent
Security
Operations & Maintenance
Insurance
Maintenance capex
Positive cash flow Negative cash flow Note: before any overhead costs
Single
tenancy
Multiple
tenants
