INDIA TELECOM TOWER INFRASTRUCTURE MARKET
With the growth of wireless communications technology such as CDMA (Code Division Multiple Access), GSM (Global System for Mobile), and WAP (wireless Web Access), telecommunication towers have become a vital commodity, particularly in the wireless telecommunication industry.
More than a thousand telecommunication towers of various structural types are available in this nation, and practically all of these towers have been constructed only with wind loading in mind, as India was formerly thought to be earthquake-free.
Steel towers are in high demand due to the fastest expanding telecommunications business. Self-weight, wind load, seismic load, antenna load, platform load, steel ladder load, and other key loads are taken into account while designing these towers.
High-intensity winds are usually to blame for tower failure. Several studies have been conducted that have taken wind and seismic loads into account.
Because telecom operators are concentrating on growing market penetration with minimum capital investment, leasing towers from tower firms is advantageous, lowering costs significantly and allowing telecom operators to focus on key marketing efforts.
Leasing towers from tower firms also allows new telecom carriers to launch services quickly. Over 100,000 telecom towers have been erected in India, resulting in a greater countrywide distribution of signalling. The electricity for these towers is supplied by diesel generators.
The telecom businesses are expected to be the country’s second-largest users of diesel, after only the railways. Apart from contributing to excessive carbon emissions, diesel consumption by telecom towers is also a significant drain on the exchequer, as the government’s loss as a result of the cheaper fuel is estimated.
Wireless networks are broadening their coverage – the region serviced by their specialised service. Many are also moving toward speedier 5G networks and 4G LTE, also known as long-term evolution, which is the highest grade of 5G and 4G. Both of these phenomena have aided in the acceleration of demand for towers.
INDIA TELECOM TOWER INFRASTRUCTURE MARKET DYNAMICS
The telecom towers business has been critical to the uninterrupted expansion of India’s telecom sector. The Indian tower business was a global pioneer in infrastructure sharing, resulting in considerable operational efficiency and capital savings for telecoms.
The industry of building, purchasing, and leasing macro towers has established its worth throughout the years, creating an investable proposition for Indian tower firms. Currently, Indian tower businesses are among the world’s major telecom infrastructure corporations.
Because passive infrastructure is one of the most significant components of a mobile network, it has historically been a vital area of activity for telecom corporations.
However, with increased competition providing an urgent need for telecom firms to expand their coverage and sharpen their emphasis on core activities in order to preserve and strengthen their market position, passive infrastructure has emerged as a separate business in recent years.
India’s smart city plan has created new opportunities for infrastructure suppliers. The backbone of the smart city endeavour is digital infrastructure, and towercos are well positioned to construct and manage this infrastructure.
The Smart Cities Mission, announced by the Indian government in 2015, intends to build 100 smart cities across the country. The country’s towercos have already hopped on the smart city bandwagon and are eager to capitalise on this potential.
The exceptional success of India’s telecom sector may be attributed to wireless expansion supported by a robust tower infrastructure business, which has played a critical role in bridging the digital divide and enabling ubiquitous mobile connection.
In the last 3-4 years, Indian telecom users’ consumption patterns have shifted dramatically. From a voice-dominated industry to a data-centric one, there has been a distinct shift in usage habits.
The Indian market is likely to see a growth in mobile data traffic in the future years as new service providers offering data-based services enter the market.
The increased data demand, as well as the rollout of 4G and the anticipated launch of 5G, has altered the infrastructure requirements for telecoms.
High-speed data services, as well as increased fibre penetration, are driving the demand for a denser network. Telecom infrastructure in the next few years will include not only macro tower sites, but also small cells, fibre, wi-fi, and in-building solutions (IBS).
This technological progression is envisaged with the shift to the next generation, which will impose new infrastructure needs for 5G upgrade and intervention into mobile networks, including high-speed gigabit requirements.
INDIA TELECOM TOWER INFRASTRUCTURE MARKET SEGMENTATION
The India Telecom Tower Infrastructure Market can be segmented into following categories for further analysis.
By Product Fuel Application
- Renewable Source of Fuel
- Non-Renewable Source of Fuel
By Product Placement
- Rooftop Based Towers
- Ground Based Towers
- Mobile Towers
- Wireless Towers
By Integration / Structure Type
- Lattice Tower
- Guyed Tower
- Monopole Tower
- Stealth Tower
- Composite Tower
- Other Tower
By Ownership Model Operation Type
- Operator Direct Owned
- Joint Venture Operation
- Private Ownership
- Public Enterprise Operation
- MNO Captive Operation
By Regional Classification
- Western Region – India
- Eastern Region – India
- Southern Region – India
- Northern Region – India
RECENT TECHNOLOGICAL TRENDS IN INDIA TELECOM TOWER INFRASTRUCTURE MARKET
The telecom tower infrastructure has been focused on rising fuel consumption levels since they fall into the industrial segment on a big scale and cost a considerable amount of exchequer for the operators.
Renewable energy can successfully power telecom tower electrical equipment in distant places when grid power is unavailable. It eliminates the chance of telecom equipment downtime due to frequent power outages, as renewable energy is the most dependable.
There have been initiatives begun in non-grid locations in around 20 states where the towers are powered by green energy sources such as solar panels and wind energy.
The experiments were judged to have “worked out well,” and there are now plans to actively disseminate them to further places. On average, 70% of new towers built each year would be in rural locations where grid electricity is not the dominant source of energy.
Controlling air pollution from telecom towers is tough since the total carbon output from diesel consumption by telecom towers is expected to be over 10 million tonnes of carbon-dioxide (CO2).
These innovative solutions include new, more environmentally friendly Telecom Tower technologies as well as revolutionary Green Energy concepts with the ability to reduce environmental consequences, such as exhaust emissions.
There has also been significant technical development in the backup power and supply needs for telecom tower infrastructure.
These telecom towers need around 12-14 billion units of electrical energy, and energy consumption per tower will grow when green field towers are built.
INDIA TELECOM TOWER INFRASTRUCTURE MARKET COMPETITIVE LANDSCAPE
To increase income, infrastructure corporations have already begun smart city initiatives. Access to street furniture for future telecom infrastructure is available in smart cities.
As the industry grows, new categories like IoT, Wi-Fi, and power management, among others, are anticipated to become mainstream.
Because of new 5G integrations inside the country, including new wireless services, there has been a placement of expanding infrastructure sharing policy. The implementation of 5G will necessitate huge tower deployment and extensive fiberization.
Active infrastructure includes the electronic elements core or intelligence in any network, such as base stations and other equipment for mobile networks, access node switches, and management systems for fibre networks.
With leading GSM players forming a consortium (Indus Towers) and other larger participants such as Tata Teleservices and Reliance Communication systems entering into long-term agreements for passive connectivity, primarily with their tower subsidiary companies, new and smaller third-party infrastructure service provider are likely to receive the majority of their business from smaller players and new entrants.
Indus Towers has been the country’s largest contributor to tower infrastructure, with 1,12,936 towers spread throughout 15 circles.
Indus Towers is a privately held company that provides passive infrastructure services to all telecom carriers and other wireless service providers such as internet service providers.
Airtel Tower Infrastructure, which has just begun mobilising the Mobile tower technology integration that focuses on the Tower need analysis, is one of the primary competitors.
It has distinguished itself from other infrastructure providers in terms of technical positioning, with passive and technology integration mobilised as needed.
GTL Infrastructure and Jio Infocomm have recently integrated and improved on the increasing mobilisation of towers, with the towers built to have a lower coverage on the land utilisation pattern as well as higher levels of low radioactivity in the zone of operation.