Market Trends of Telecom Towers Industry
Operator-owned Tower is Expected to Register a Significant Growth
- In the operator-owned telecom tower segment of the market studied, multiple mobile network operators (MNOs) are responsible for towers' construction, functioning, and maintenance. These services are being increasingly outsourced to third-party companies in emerging economies.
- Between TowerCos nearing saturation of addressable markets and investible portfolios globally, combined with the growing tendency of MNOs to carve out and keep operator-led TowerCo, TowerCos are compelled to look beyond their core business of building, purchasing, and leasing vertical real estate to consider new assets and new services. Indeed, as per numerous TowerCo leaders, more than 50% of organic growth now originates from solutions beyond traditional macro towers and rooftops, encompassing lamp posts and building solutions.
- Operators own over two million telecom towers, while third parties have constructed the rest. Furthermore, the emergence of operator-owned companies like Bharti Infratel (India), which offer telecom towers to other mobile network operators as their clients, has expanded the opportunities within the operator-owned telecom tower segment.
- Tower ownership patterns vary from region to region. The operators in the Asia Pacific region prefer to value their towers as a key differentiator. In contrast, the United States tower market has witnessed a transformation in which most towers moved from mobile network operators (MNOs) to independent enterprises.
- Mobile operators in countries like India frequently use joint partnerships or captive tower companies to own their towers. Regarding shared ownership among several operators, the operator-owned tower business model proved more effective than the mobile provider owning their tower subsidiary.
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North America is Expected to Hold Major Share
- The United States landscape is highly competitive, with numerous significant vendors vying for dominance. This intense competition is driven by the country's substantial demand for 5G telecommunications services, leading many companies to focus on expanding their operations to capitalize on this opportunity. The United States government has multiple major vendors engaging in partnerships, acquisitions, mergers, rollouts, and coalitions.
- SBA Communications, a prominent tower provider in the United States, possesses approximately 10,000 towers and specializes in wireless communications. Additionally, the company has recently announced a significant long-term master lease agreement with DISH-this strategic partnership grants DISH access to SBA's extensive portfolio of wireless communications sites nationwide.
- Moreover, the previous year, PG&E made a significant announcement concerning its agreement with SBA Communications Corporation to divest its license agreements with wireless providers. This strategic move allows SBA to retain its market presence and further grant access to the towers and structures to more wireless providers through sub-licensing.
- Mobile wireless services are Canada's most significant and fastest-growing telecommunications industry in recent years. The upward trajectory is anticipated to persist as it witnesses the implementation of advanced technologies like the fifth-generation 5G network and the integration of innovative applications like the Internet of Things(IoT).
- Bell Mobility, TCI, and RCCI (collectively, the national wireless carriers) exercise market power to offer retail mobile wireless services in all provinces of North America, such as Northwest Territories, Yukon, and Nunavut, except Saskatchewan, where SaskTel exercises individual market power.
- Furthermore, the Province of Ontario and the Eastern Ontario Regional Network announced a partnership with the Government of Canada the previous year. Further, the initiatives aim to provide dependable wireless connectivity to 99% of residents and businesses in Eastern Ontario, effectively closing the cellular gap and significantly enhancing the region's safety, productivity, and overall quality of life. This effort reflects Roger's ongoing commitment to expanding its services and has resulted in improved connectivity for underserved communities, including remote and rural areas.
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