Africa, Latin America top for cellular tower leasing
As per the new reports released reveals that the high cost of erecting and running cellular communications towers has driven many operators towards leasing arrangements in recent years.
The report states that although 17% of all towers are currently leased the number is expected to rise to almost 25% in 2015.
Though the trend seems to be most pronounced in the US and in India (where it is driven by low ARPUs and high levels of competition), Latin America and Africa have the greater opportunities.
Although they are still embryonic markets, Latin America and Africa offer the greatest potential for growth in cellular tower leasing.
The reports further reveals that leasing markets are being driven forward by competitive pressure to cut operating costs and to keep up with the pace of innovation in services, the model of offloading tower ownership (earning revenue from that), and letting third parties do the management has proven very successful in both India and the US.
It is reported that the Indian tower company Bharti Infratel is eyeing African markets, while American Tower is acquiring assets in South America and in India itself. Other major players include Indus Towers (the world’s largest tower company with about 44,000 sites), and Crown Castle in the US.