Tower Companies: what’s next?

A new landscape for the telecom industry: a market that had always worked well for footprint expansion in the right terrain at the right price, now has changed. Diversity of technologies, 5G, and other new business models pressure tower companies to focus on new revenue streams. Digital transformation will be the key driver for this; there is a proven link between digital maturity and business performance.

Telecom companies have been draining their market in the massive sale of assets to infrastructure macro companies. This is most pronounced in regions such as the United States, where the majority of towers have been transferred from operators to independent companies. However, tower ownership trends may vary by region: in Asia, towers are the main source of differentiation in operator ownership.

Some of the major players in this market are Bharti Infratel Limited, Helios Towers, China Tower Corporation, American Tower Corporation, Crown Castle, SBA Communication Corporation and AT&T Inc. The U.S. landscape is one of the most competitive for major providers, due to the demand for 5G telecommunications in the country. In addition, COVID-19 has significantly increased the demand for Internet services globally.

Companies differ on how to invest the money they are making.

For example, Crown Castle is betting on further network densification through small cells in the U.S., while American Tower is betting on a broad shift to data centres and SBA is looking to international markets for further growth.

In this scenario, it is important to consider new revenue routes: imaging and logistics services, data intelligence services, wholesale access for enterprises (providing high-speed dedicated connectivity to businesses), etc. Digital transformation is a proven way to develop these points; it makes what has always worked well work better.

In this context, strategies are needed to ensure continuity, as well as someone to guide the process forward. Beyond works to offer solutions and accompany in deciding where to go in scenarios where the direction is not so clear.