Telecom tower tenancy may hit 2.48 by '20

Telecom tower tenancy may hit 2.48 by '20

Driven by an increased need for data in mobile phones, the Indian telecom tower tenancy ratio is expected to reach 2.48 by 2020 according to a report by Deloitte.

“Industry tenancy ratio is expected to grow from 1.77 in FY 2015 to 2.48 by 2020 primarily due to focus on data. Overall site tenancies (2G, 3G & 4G all inclusive) are expected to increase to approximately 12.68 lakh by FY 2020,” Deloitte said in a report titled Indian Tower Industry: The Future is Data.

Tenancy ratio refers to the number of tenants (operators) who have put up their antennae and other active infrastructure on the towers. There are close to 4 lakh telecom towers in India currently and that is estimated to increase at a CAGR of 3 per cent over next 4-5 years.

Standalone data towers are expected to grow with a CAGR of about 125 per cent till FY 2020 while other towers are expected to grow with a CAGR of 1.89 per cent over the next 5 years  driven by increasing data usage.

At present, the number of standalone telecom tower for 3G and 4G across India are estimated to be only around 700, the report said.

Towers are expected to grow at 3 per cent CAGR for next five years and the total number of towers is expected to grow to more than 5,11,000 by FY 2020, of which 30,000 towers are expected to be only supporting data sites.

The key trends that will impact the tower industry include data growth resulting in demand for capacity sites, traffic offloading to micro sites.

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