Economic Reporter :
Five common features such as clear licensing policy and less restriction are mainly considered to define a tower market as “efficient”, according to a report.
It defined the market as efficient where more than 50 per cent of towers are owned by towercos while tenancy ratio of 1.5x and above for towers owned by towercos.
The independent report “Global Trends in Tower Markets” prepared by Analyses Mason and commissioned by edotco Group focuses on the structures and characteristics of efficient tower markets in six countries, said an edotco press release Wednesday.
The report benchmarked some 20 countries where towers are active especially six leading markets stand out: US, Nigeria, Ghana, Germany, India and Indonesia, and also indentified five major characteristics that these markets shared.
It said tower market efficiency is dependent on a range of ownership models while open markets with fewer restrictions have proven to be most efficient.
Besides, scale, often through foreign ownership, increases operational efficiency of towercos and countries with efficient tower markets award network infrastructure licenses to any party that meets qualifications.
Moreover 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 per cent foreign ownership, thereby allowing towercos to deliver the advantages of scale, even in smaller markets,” noted Amrish Kacker, Partner at Analysys Mason.
The report added that in those efficient markets, there are typically 2-3 major towercos along with smaller towercos, creating a competitive tower market.
Every country is at different stages of adopting telecommunication technology that works within their own limitations and boundaries. The growth potential in individual markets varies, and understanding this, provides 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,” concluded Analysys Mason.
Five common features such as clear licensing policy and less restriction are mainly considered to define a tower market as “efficient”, according to a report.
It defined the market as efficient where more than 50 per cent of towers are owned by towercos while tenancy ratio of 1.5x and above for towers owned by towercos.
The independent report “Global Trends in Tower Markets” prepared by Analyses Mason and commissioned by edotco Group focuses on the structures and characteristics of efficient tower markets in six countries, said an edotco press release Wednesday.
The report benchmarked some 20 countries where towers are active especially six leading markets stand out: US, Nigeria, Ghana, Germany, India and Indonesia, and also indentified five major characteristics that these markets shared.
It said tower market efficiency is dependent on a range of ownership models while open markets with fewer restrictions have proven to be most efficient.
Besides, scale, often through foreign ownership, increases operational efficiency of towercos and countries with efficient tower markets award network infrastructure licenses to any party that meets qualifications.
Moreover 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 per cent foreign ownership, thereby allowing towercos to deliver the advantages of scale, even in smaller markets,” noted Amrish Kacker, Partner at Analysys Mason.
The report added that in those efficient markets, there are typically 2-3 major towercos along with smaller towercos, creating a competitive tower market.
Every country is at different stages of adopting telecommunication technology that works within their own limitations and boundaries. The growth potential in individual markets varies, and understanding this, provides 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,” concluded Analysys Mason.
