Monetisation of telecom towers has been gaining traction since a while back, but there is still room for growth in the years to come. Although key stakeholders – MNOs, tower companies, and financial investors – are keen to exploit the benefits of this opportunity and deliver on the value promise that the tower business presents, they also need to navigate various strategic, technical, and financial challenges. We explore in this article the key opportunities and challenges arising from the telecom towers business.
In an investment-driven industry, optimizing investment decisions has always represented a key challenge for companies.
In the current telecom sector, which is generally characterised by stagnating core market growth and increasing competition (from different fronts, including Over-The-Top players), many MNOs2 across the globe are facing flat or even decreasing revenues.
In this challenging landscape, such MNOs have engaged in different strategies. One of the most relevant of these, which has become a hot topic of conversation over the past few years, is asset monetization (mainly of telecom towers3), which allows them to focus on their core business operations, outsource management of cost-intensive assets and raise financial muscle.
MNOs are increasingly looking to monetise their telecom towers through various mechanisms, including minority stake sales, public listings or full divestment to independent tower companies.