For the complete report, get in touch with us at : info@netscribes.com The telecom towers business in India is lucrative with long-term growth prospects. Telecom becoming a necessity for individuals, the market is expected to boom in the future. Due to increasing penetration of advanced technologies in the market, players are looking to tap the opportunities being offered by 3G and WIMAX. Infrastructure sharing has however become an essential part of the market because more and more players are looking to reduce their capital and operational expenditure on telecom towers. The market is witnessing growth and provides greater opportunities for players in the near future. The report begins with the market overview section highlighting the telecom tower requirements in India. The cost break-up and description of different types of telecom towers in India is also highlighted. This is followed by the information regarding the various business models followed in India with regards to erection of towers and its related infrastructure. A section on infrastructure sharing highlights the types of sharing associated with telecom towers. It also identifies the key benefits of sharing for players in the market. A sample tower profitability matrix has also been prepared to analyze the profit for players. The key factors of growth for the market have been analyzed. An analysis of these drivers explains the factors for growth of the industry including growth in subscribers, emergence of solar power as a positive source of energy, introduction of new technologies like 3G and spectrum scarcity. The key challenges identified encompass challenges faced in rural set up and increasing pollution and radiations. This is followed by the government regulations section which provides a brief description of the major government bodies operating in this sector. The key initiatives taken by the government on account of boosting the sector have been analyzed including the role and regulation of the government in terms of infrastructure sharing. The competition section provides an overview of the competitive landscape of the market highlighting the current market share of the tower companies on account of the number of towers operational under their banner. It also provides a detailed matrix of major telecom players in India with their current subscriber base and the respective tower infrastructure providers. It also includes detailed profiles of major players present in the market. This is followed by the mergers & acquisitions section which gives a snapshot of the major deals that have happened in the sector over the past year. It also highlights the PE investments in the sector. A key developments section has also been provided highlighting the developments in the market over the past year.

1. Telecom Towers Market – India
October 2010

2. Executive Summary
Estimated requirement of XX in 20-- and XX by 20--
Market Projected growth rate of a% p.a. in 20XX-20XX
Booming Infrastructure sharing to boost the overall market
Telecom tower companies follow four types of business models:
LE
– Type 1: Towers are owned & operated by telecom operators
Business
P
– Type 2: Operator consolidates tower infrastructure and hives it off as a separate company
Models – Type 3: Operators jointly setup an independent company for sharing tower infrastructure
Drivers &
Challenges SAM
– Type 4: Independent tower companies operate on a ‘build-and operate’ model
Drivers: Growth in subscribers, emergence of solar power as a positive source of energy,
Introduction of new technologies like 3G and spectrum scarcity
Challenges: Challenges faced in rural set up, increasing pollution and radiations
Govt. bodies like Body 1 and Body 2 have taken initiatives to develop telecom companies
Govt.
Financial and operational initiatives through fund grants and L Fund have boosted efforts of
Regulations & tower companies
Initiatives Tower sharing in terms of active and passive is propagating growth prospects for players
Indian telecom tower market includes tower infrastructure companies, owned and controlled by
telecom-operator companies and Independent tower infrastructure companies
Competition Company 1 is the leading player with o% market share
Players are readily looking to reduce their capital costs through infrastructure sharing
TELECOM TOWERS MARKET IN INDIA 2010.PPT 2

3. •Market Overview
•Business Model
•Infrastructure Sharing
•Drivers & Challenges
•Government Regulations & Initiatives
•Competition
•M&A and PE Deals
•Key Developments
TELECOM TOWERS MARKET IN INDIA 2010.PPT 3

4. Demand for telecom towers is high resulting in a rapidly
growing industry and emergence of lucrative tower business
Overview Telecom Tower Requirements1
• Growth in mobile subscribers in India over the last
few years has created huge opportunities for the Towers (‘000s)
telecom infrastructure industry
LE
h
• Types of towers
g
P
Type 1
f t
Type 2 a% s
M e r
• All leading mobile service operators are expanding q
A
and increasing their coverage by p
d o
Increasing their network
Using independent tower networks S
Increase coverage through tower sharing
• Tower infrastructure is increasingly becoming
c
b
a
m
n
independent of telecom operators 0
• The growing market for towers is also attracting the 2008 2009 2010 2011e 2012e 2013e 2014e 2015e
attention of private equity funds to invest in the
companies
• The commercial terms between the tower company
and its tenants are governed by X
Source:
TELECOM TOWERS MARKET IN INDIA 2010.PPT 4

5. Drivers & Challenges – Summary
Drivers Challenges
Growth in subscribers Challenges faced in rural set up
Emergence of Solar power as a
positive source of energy Increasing Pollution and Radiations
Introduction of new technologies like
3G
Spectrum Scarcity
TELECOM TOWERS MARKET IN INDIA 2010.PPT 5

6. Major telecom companies are resorting to outsourcing and
tower sharing to hive off their huge capital expenditure
Type of companies Major Tower Companies in India
•Market is dominated by tower companies,
owned or controlled by operators
LE
Company 1 – A,B, C
Company 1 t1% C1
Company 2 – D
Company 3 – E
M
•Independent tower infrastructure companiesP Company 2 t2% C2
5 being the largest
SA
(ITICs) are more recent entrants with Company
•Intense competition in the industry is forcing
operators to look for opportunities to reduce
Company 2
Company 3
t3%
t4% C4
C3
the cost of operations Company 4 t5% C5
They are doing so by outsourcing network related
activities which demand huge capital expenditure Company 5 t6% C6
and operating expenditure
Company 6 t7% C7
Source:
TELECOM TOWERS MARKET IN INDIA 2010.PPT 6

7. Major Players (1/9)
Company Snapshot: Company 1
SAMPLE
Corporate Information Financial Performance
Revenue Profit
Headquarters Location 1, Country 1 INR bn INR bn
100 Y 20
X
W
80
Founded 19-- U V 15
60
10
40
Key People Person 1 – CEO 20 5
0 0
2006 2007 2008 2009 Jul ’09-
Jun ’10
Business Highlights
• Operates as a wireless and broadcast communications infrastructure company and develops owns, and operates
communications sites
• Operates in two segments : Segment 1 and Segment 2
Segment 1 leases space on its wireless communications towers to customers, including personal communications services, cellular,
specialized mobile radio, WiMAX, paging, and fixed microwave
Segment 2 provides tower-related services, including acquisition, zoning and permitting services, and structural analysis services
• As of B, 20--, it owned and operated ~a communications sites in the US, Mexico, Brazil, and India
• In C 20--, it acquired Company 2
Source:
TELECOM TOWERS MARKET IN INDIA 2010.PPT 7

8. Thank you for the attention
The Telecom Towers Market – India report is part of Research on India’s Telecom Industry
Series.
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TELECOM TOWERS MARKET IN INDIA 2010.PPT 8