Telecom Infrastructure Industry Set to Have Structural Changes
The telecom tower industry is expected to undergo structural changes in the medium term.
Currently, the industry, with around four lakhs towers and about eight lakh tenancies, is a sizeable one in the world.
It has ten organized players (apart from many small tower owners) wherein 74 percent of the portfolio is held either by tower companies promoted by telecom operators, or by telecom operators themselves.
Over the next 1-2 years, there is likely to be a material change in the industry structure with a number of players expected to reduce to 4-5.
The key development for the industry would be the likely change in ownership from telecom operators to independent players, as reflected by the consolidation transactions underway and by the interest from such players and investors.
