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Malaysia's edotco releases global telco tower report

AvantiKumar | March 30, 2016
The Analysys Mason study talks of five factors that define efficient tower markets.

Suresh Sidhu, CEO, edotco Group 

Photo - Suresh Sidhu, Chief Executive Officer, edotco Group

 

Malaysia's edotco Group has released an independently conducted report that identifies five common factors shared by efficient telecommunications tower markets.

Suresh Sidhu, chief executive officer, edotco Group, which recently announced a project to build 5000 towers in Cambodia, said the report, titled Global Trends In Tower, focused on the structures and characteristics of efficient tower markets in six countries defined as markets where more than 50 percent of towers are owned by towercos and tenancy ratio of 1.5x and above for towers owned by towercos.

According to the independent report by Analysys Mason, which benchmarked some 20 countries where towers are active, six (6) leading markets stand out: US, Nigeria, Ghana, Germany, India and Indonesia.

These markets shared five (5) key characteristics:
- Tower market efficiency is dependent on a range of ownership models
- Open markets with fewer restrictions have proven to be most efficient
- Scale, often through foreign ownership, increases operational efficiency of towercos
- Countries with efficient tower markets award network infrastructure licenses to any party that meets qualifications
- A clear licensing policy which encourages investment will attract multiple towercos and create a more competitive tower market

"These markets allow a range of tower ownership models, all of which can be efficient in promoting tower sharing. Most efficient tower markets allow for 100 percent foreign ownership, thereby allowing towercos to deliver the advantages of scale, even in smaller markets," wrote Amrish Kacker, Partner at Analysys Mason.

The report noted that in those efficient markets, there are typically 2-3 major towercos along with smaller towercos, creating a competitive tower market.

In addition, every country was at different stages of adopting telecommunication technology that worked within their own limitations and boundaries. The growth potential in individual markets varied, and understanding this, will provide headway for towercos as they continue to support each country in their telecommunication needs.

The presence of a towerco with a substantial market share does not make it less attractive for other towercos from entering the market, added Analysys Mason.

For the complete report on Global Trends In Tower Markets, please visit edotcogroup.com/media/

Established in 2012, edotco Group, which is a wholly owned telecommunication infrastructure services subsidiary of Axiata, has a portfolio of more than 16,000 towers in our countries of operation: Malaysia, Sri Lanka, Bangladesh, Cambodia, Myanmar and Pakistan.

 

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