13 - 14 December, Marina Bay Sands, Singapore … · < Mohan Villavarayan, Managing Director Sri Lanka, edotco < Philippe Luxcey, CEO, Apollo Towers Myanmar ... 13-14 December, Marina

Meetup Asia 201613 - 14 December, Marina Bay Sands, Singapore

Silver Sponsors: Bronze Sponsors:Diamond Sponsor:

A senior-level networking opportunity with 250 leaders of the Asian telecom tower industry

Speakers confirmed to date include: edotco, Bharti Infratel, Protelindo, Indus Towers, Towershare, STP, Indosat, Teletalk, Common Towers, Macquarie Group, Hardiman Telecoms, IFC. Visit http://www.towerxchange.com/meetup/meetup-asia

Organised by:

The unique experience of a TowerXchange Meetup

< Asia market forecasts< Q&A with the CEOs< Round tables add insight< Structured introductions< Select your own agenda< Local market knowledge

< Market transformation< Next sale & leasebacks< BTS opportunities< Site upgrades< Energy opex reduction< Country specific round tables

Insights

Infrastructure focused

Personal development

Connections

Experience

Learning

< Top 250+ decision makers< Towerco CXOs< MNO tower strategists< Investors< Strategic advisors< Proven suppliers

< Networking< Selective audience< Curated exhibition< Relax and enjoy< Professionally hosted

< Undiluted focus on passive infrastructure< Real estate< Power< Construction< Monitoring< O&M

< Learn from 250+ peers, the leaders of the Asian tower industry< Align your role and strategy with the needs of the ecosystem

For more information visit www.towerxchange.com/meetups/meetup-asia

www.towerxchange.com/meetups/meetup-asia | TowerXchange Meetup Asia 2016, 13-14 December, Marina Bay Sands, Singapore | 3

TowerXchange Meetup Asia - Draft agendaMarina Bay Sands, Singapore | 13-14 December 2016

Monday 12 December

15:00 - 18:00 - Pre-conference vendor briefing hosted by edotco

Day One | Tuesday 13 December

8:00 Registration and coffee

9:00 TowerXchange introduction to the Asian tower market – what has changed since our last Meetup? 9:15 Keynote presentation - edotco

9:45 TowerXchange baseline data on Indonesia and Malaysia

9:55 CXO Panel - India, Indonesia, Malaysia

10:55 Coffee and networking

11:25 Roundtable session 1

12:25 Networking lunch



15:25 Achieving operational excellence at cell sites

15:45 TowerXchange baseline data on India

16.00 CXO Panel – The future of the Indian tower market

17:00 End of day one and networking drinks

19:30 TowerXchange networking dinner (optional)

Day Two | Wednesday 14 December

8:30 Welcome coffee and breakfast

9.00 Keynote Address - tbc

9:20 TowerXchange baseline data on Myanmar

9:30 CXO Panel - Myanmar: the next phase of development

10:30 The evolution of energy management in the Asian tower industry


11:10 TowerXchange baseline data on developing Asian tower markets

11:30 CXO Panel - Developing tower markets in Asia: Pakistan, Bangladesh, Thailand, Vietnam


13:10 Networking lunch



15:30 CXO Panel - Fibre, small cells, network evolution - What’s next for the tower industry?

16:15 TowerXchange baseline data on China

16:30 CXO Panel – Understanding the Chinese tower market

17:15 Close of TowerXchange Meetup Asia 2016

Thursday 15 December

10:00 - 16:00 Post-conference regulatory workshop hosted by the World Bank / IFC

10:00 - 12:00 Closed session limited to regulators and ministerial representatives

| TowerXchange Meetup Asia 2016, 13-14 December, Marina Bay Sands, Singapore | www.towerxchange.com/meetups/meetup-asia4

Country focus < India< Myanmar< Indonesia< Malaysia< China< Thailand< Vietnam< Pakistan< Bangladesh< Cambodia< Australia< Laos< Nepal< Japan< The Philippines

Functional focus

< CTO forum: Developing a new technology strategy to support changing towerco business models< CFO forum: New strategies for raising equity and debt finance< CFO forum: Identifying new M&A opportunities< CSMO forum< COO forum< General Counsel forum

Operational focus

< Opportunities for renewables and ESCOs in Asia Microcells, small cells and DAS

< Accelerating build-to-suit, construction and colocation< How to build towers with maximum future sale value< How to minimise the total cost of evaluating and strengthening towers< How towercos and their subcontractors can ensure adherence with SLAs < Beyond passive infrastructure: end to end models < Workforce and vendor performance management< Redefining the way we manage SLAs and KPIs< Impact of spectrum regulation and technology policy on towerco tenancies< Project management best practices: from site acquisition to licensing

TowerXchange Roundtables

< Suresh Sidhu, CEO, edotco< Akhil Gupta, Chairman, Bharti Infratel< Dr. Mahadi Harris-Murshidi, CEO, Common Tower< Eric Crabtree, Chief Investment Officer, IFC < Carlos Katsuya, Head of Asia, TMT, IFC< Nobel Tanihaha, President Director, STP< Steve Weiss, CFO, Protelindo < Peter Egbertsen, Director, Corporate Finance, Protelindo< Tomy Sudiwoyono, Division Head, Tower Planning & Engineering, Indosat< Umang Das, Chief Mentor, Viom Networks< Bimal Dayal, CEO, Indus Towers< Rehan Hassan, President & CEO, Towershare< Mohammad Rizvi, Manager of Network Planning

and System Engineering, Teletalk< Lim Chuan Wei, Partner, Analysys Mason< Enda Hardiman, Managing Partner, Hardiman Telecom< Gulfraz Qayyum, Managing Director Asia TMT, Citigroup< Patrick Tangney, Partner, Alcazar Towers< Krishna Suryanarayanan, Managing Director, Structured Finance, ING< Thivanka Rangala, CFO, edotco< Wan Zainal, CSMO, edotco< Oliver Coughlin, COO, edotco< Carson Wolfer, M&A Advisor, edotco< Rema Nair, Regulatory Advisor, edotco< Kumari Nalini Subramaniam, Head of Infrastructure Planning and Design, edotco < Gayan Koralage, Director, Strategy & Commercial, edotco

< Darryll Sinnappa, Managing Director Bangladesh, edotco< Phillip Wong, Managing Director Cambodia, edotco< Arif Hussein, Managing Director Pakistan, edotco< Mohan Villavarayan, Managing Director Sri Lanka, edotco< Philippe Luxcey, CEO, Apollo Towers Myanmar< Amit Sharma, EVP and President Asia, American Tower Corporation< Manish Kasliwal, VP & CBDO, American Tower Corporation< Tucker Grinnan, Executive Director, Asian TMT, J.P. Morgan< Sushil Kumar Chaturvedi, CEO, Ascend Telecom< Pankaj Agrawal, Specialist Advisor, Asian TMT, Capitel Partners

Confirmed Speakers to date:

80-90% of the leading towercos and MNOs attend

At other telecom events, a maximum of around 10-15% of the CXOs who lead tower strategy for MNOs and towercos are in attendance. At TowerXchange we regularly attract multiple senior representatives from 80-90% of the towercos active in any region, as well as the majority of MNOs. And thanks to our unique structured networking round tables, everyone has access to these decision makers.

Laser beam focus on towers

Another problem with other telecom events is that passive infrastructure is typically hidden away as an under-appreciated small part of a broader show. The huge audience of middle management, device and VAS influencers at other events dilutes access to the few tower decision makers present. In comparison, TowerXchange has been described as a “networking club for tower geeks” – everyone you meet at TowerXchange is focused on towers, and everyone you meet is a decision maker.

Proven over five past events attended by over 1,000 decision makers, TowerXchange Meetups are unique executive retreats for the most influential men and women in telecoms infrastructure. Held annually in Africa, Asia, CALA and Europe, we use small group round table breakouts to give participants unique access to the key stakeholders in the telecom tower industry in each country.

What is a Meetup?

Accelerate vendor selection

If you want to buy telecom tower structures and accessories, energy equipment, energy services, RMS, ILM, access control, H&S equipment, or if you want to contract with tower construction and O&M firms, then

Every TowerXchange expo has sold out

Curated expo of proven suppliers


the private expo at the TowerXchange Meetup provides a ‘who’s who’ of proven passive infrastructure equipment and service providers.

Identify opportunities for your business today…

TowerXchange introduces each Meetup with our proprietary research, defining the size of the tower market in each country, identifying who owns the towers today and predicting the future tower transaction pipeline. We also track network rollouts,

extensions and densification, and examine ownership of energy assets and the prospects for energy service providers.

…And opportunities for your business tomorrow

We use MNO and towerco CXO panel sessions to understand the future of the tower industry. What has been the progress of tower transactions and of portfolio integration? What future acquisitions are planned? How is capex being deployed? What are the

priorities of efficiency programmes? Are opex-sharing models being explored? Are microcells, small cells and DAS being rolled out?

Unique structured networking

TowerXchange’s renowned round table breakouts are led by an expert moderator, but everyone’s opinions and questions are welcomed. Each round table focuses on a specific country, financial or operational issue. You can attend three or four round tables at each Meetup. Register now to secure your choice of round table and tailor your agenda to meet your networking objectives!

Unique round table breakouts

Suresh Sidhu’s insightful keynote address


Tower Industry Value Chain

TowerXchange Meetups bring together 250+ business leaders representing the entire telecoms infrastructure ecosystem.

TowerXchange engages with MNOs who retain their passive infrastructure, and with 143 independent towercos and network sharing joint venture which between them have acquired or built over 1,876,000 towers worldwide. TowerXchange also maintains relationships with over 500 investment and advisory firms who facilitate tower transactions.

TowerXchange explores the implications of tower transactions for the supply chain: from tower designers and manufacturers to tower construction and O&M firms. The TowerXchange community engages with every major telecom energy equipment and service provider worldwide, including an emerging class of credible ESCOs. We track over 30 different RMS and ILM solution providers, as well as leaders in access control and H&S solutions for cell sites. And we connect the passive infrastructure ecosystem with innovations in microcells, small cells and DAS as well as fibre, microwave and satellite backhaul.

The TowerXchange community is brought together by the renowned TowerXchange Journal, circulated to 11,800 tower industry leaders worldwide. The tower industry’s leaders gather annually at TowerXchange Meetups – we look forward to meeting you there!

Who you will meet

Fibre, microwave, satellite backhaul Microcells, small cells & DAS Active equipment

Tier 1 OEMs

Mobile Network Operators

Investors: private equity, DFIs, debt finance, infrastructure funds

Law firms

Group level strategistsC-suite & network planners at local OpCos

Outsourceto

Strategic consultancyDue diligenceDemand modelingAsset register audits

Independent TowercosSell co-locationsGenerate amendment revenueBuild-to-suitAchieve SLAsEfficiency programmesOptimise supplier contracts

Transfer assets to

Construction servicesTurnkey infrastructure rollout Tower design & manufactureImport, customs & delivery Site acq, leasing & permitting Installation of towers Tower strengtheningDecommissioning

Dynamic assets

Energy equipmentDiesel gensetSolarWindFuel cell

BatteriesRectifiersInvertersLine conditioningPIUs

Air conditioning Lightning protectionControllerVoltage regulatorAlternator

Managed service providers

ESCOs

Static assetsTowers & mastsSheltersBracketsEnclosuresLightingFencing

0&M servicesMaintenanceStaffingSpare partsSecurityRefueling

Energy as a service

Monitoring & managementRMSIntelligence/analysisSite managementJob ticketingAsset lifecycle platform

Access control

Subcontract

Opex modelsVendor financeDistributed generationCommunity power

Subcontract or in-house

Outsourceto

Investment management advisors


Lessons learned from yesterdayfor the Asian towerco of tomorrow

www.towerxchange.com | TowerXchange Issue 15 | XX| TowerXchange Meetup Asia 2016, 13-14 December, Marina Bay Sands, Singapore | www.towerxchange.com/meetups/meetup-asia8

Suresh Sidhu, CEO, edotcoSuresh Sidhu, visionary CEO of edotco, was once again the opening keynote speaker at the second TowerXchange Meetup Asia, hosted at the prestigious Marina Bay Sands Hotel on November 24 and 25, 2015. Sidhu emphasised that the mobile industry was being shaped by multiple forces: < Infrastructure: tower asset divestitures and shared networks< Technology: spectrum scarcity and the rise of unlicensed spectrum; as well as data growth driving demand for cell site densification and infill sites across Asia< Commercial pressures: declining operator profitability compounded by the need to invest in network expansion to meet demand< Regulatory: increased scrutiny on QoS, with telecoms seen as a critical source of revenue MNOs are up against major challenges. Long term growth in demand for mobile data has surpassed the capacity traditionally available from spectrum in many markets. MNOs are reusing spectrum at smaller and more targeted sites to mitigate the shortage. Key challenges with deploying smaller sites include access to locations (which have very specific requirements), power and backhaul – each of which can be addressed by sharing. MNO’s subscribers are seemingly more loyal to OTT providers like Google and Facebook than to their carrier. Meanwhile, regulations continue to shape

Highlights from edotco, Bharti Infratel and American Tower’s keynotes at the TowerXchange Meetup Asia 2015

Read this article to learn:< Positioning towercos as Nation Builders< Enhancing services and adding value for our tenants< The 123,000 towers for sale across Asia< Beyond BTS and co-location: energy, monitoring, fibre, IBS, small cells and smart cities< The Indian towerco model: sharing towers, sharing savings

Keywords: 3G, 4G, ARPU, Active Equipment, Active Infrastructure, American Tower, Asia, Asia Insights, Backhaul & FTTT, Bankability, Bharti Infratel, CAGR, Co-location, Co-locations, Core Network, Deal Structure, Densification, EBITDA, Energy, IBS, India, Indonesia, Indus Towers, Infrastructure Sharing, MLAs, MNOs, Malaysia, Managed Services, O&M, Opex Reduction, Passive Equipment, QoS, RANsharing, RMS, ROI, Regulation, Small Cells, Smart Cities, Towercos, edotco

The 2015 TowerXchange Meetup Asia featured three visionary keynote presentations on the tower industry, it’s origins, the challenges we face today, and opportunities to expand the scope of the towerco business model – in partnership with customers. Here are the highlights from the presentations made by Suresh Sidhu, CEO, edotco; Akhil Gupta, Chairman, Bharti Infratel and Amit Sharma, Executive Vice President, President - Asia, American Tower Corporation.Suresh Sidhu, CEO, edotco

the industry: the old approach to providing access is essentially gone and operators face challenging QoS issues targets. At the same time many developing countries need access to funds and the mobile industry is often the single biggest industrial contributor the GDP; tax revenue expectations are high. There are even some markets where the regulator has revenue targets. How can the MNOs respond to this pressure? One answer lies in the financial re-engineering offered by partnerships with the tower industry. The tower industry also faces new challenges including consolidation of MNOs and regulatory hurdles in their newer markets. Towercos need to redefine what makes them successful. Increasingly

the discussion at a customer level is moving from pure economics to instead focus on the real value delivered to clients and their end-users – this is becoming a significant part of sale and leaseback discussions. “The towerco business appears to be extremely stable but it pays to be a little paranoid in spite of this,” said edotco’s Sidhu. Forward-thinking CXOs at towercos worry about sustainability of the existing

build to suit and colocation focused tower model and increasingly consider a range of potential enhanced services, from energy solutions, tower monitoring, fibre resale, and passive and active O&M, to developing new solutions such as IBS, small cells and BTS hotels. To date there have been over 400,000 towers transferred from MNOs to towercos around Asia, and there may be as many as another 100,000 for


More and more operators are looking at dives?ng their towers

4

Over 100,000 towers are coming to market in Asia and the Middle East

# towers for sale ('000) x

# towers sold/carved out ('000)1 x

Bangladesh

Malaysia

Myanmar

India 68.0 213.5

KSA 14.7

6.0

3.9

1.3

Jordan 2.1

Kuwait 1.5

Iraq 4.1

Kazakhstan 3.9

Bahrain 0.4

Indonesia 17.3

Afghanistan 2.0

# total towers for sale (current or imminent) ('000)

# total towers sold/carved out to date ('000)1

123

378

China 120.0

Pakistan

18.7

Note: 1 Publicly announced tower transac1ons/carve outs since 2005 Source: SP Capital IQ, Mergermarket, TowerXchange

5.3

Sri Lanka 2.2

Cambodia 1.5

Thailand 15.0

1

“ “

To date there have been over 400,000 towers transferred from MNOs to towercos around Asia, and there may be as many as another 100,000 for sale as the towerco model is established in new countries” – Suresh Sidhu

Note: 1 Publicly announced tower transactions/carve outs since 2005Source: SP Capital IQ, Mergemarket, TowerXchange

sale as the towerco model is established in new countries. As this process continues there will be a sea change in how the industry operates as operators embrace the model and start focussing resources away from infrastructure management. Towercos will take on this role and structure the focus on infrastructure to provide the best end-user experience.

The requirements of infrastructure sharing are huge, and demand for solutions is increasing faster than the capability to meet it. The industry needs to respond; MNOs that have divested their assets will be happy to start building their own towers again if they feel that we aren’t keeping up with market demand. While some towerco executives are preoccupied with delivering 85% margins, others are more focused on meeting their clients’ desire for end-to-end solutions; our tenants want the most efficient assets possible and are more interested in solutions for the specific challenges they face. Increasingly MNOs don’t feel the need to own the towers. There will be continued consolidation, and edotco also predicts increasing involvement in active infrastructure sharing. RAN sharing is prevalent in Europe, where some towercos have seen their share of tenancies fall by 20-35% as a result of network sharing. RAN sharing is coming to Asia and has been launched in Malaysia and Indonesia. Meanwhile, what role could innovations like Google Loon and Facebook Aquila play in extending rural connectivity? Innovations often start by addressing opportunities nobody else appears to

want to address, like marginal rural markets, but if successful these solutions could extend from rural to core network coverage. In the traditional model, towercos are more inwardly focused on assets as opposed to services, on the conversion of capex to opex, and tend to focus of rental of space on traditional ground based towers. Suresh suggested eight refinements to make towercos successful in tomorrow’s world: 1. Scale within country but also scale across multiple footprints2. Delivery of operational improvements made transparent through uptime, SLA and low TCO metrics3. The ability the structure strategic deals, leveraging balance sheets beyond a pure focus on co-locations4. Embracing new technologies such as small cells, BTS hotels and camouflage sites5. Enhancing the scope of towerco services to include RMS, O&M and power where appropriate6. Standardising processes to propagate best practice7. Engaging regulators and other national stakeholders to position towercos as a true partner to the country, and to position telecom infrastructure as fundamental to Nation Building8. And finally to drive the development of human resources across the region, building capabilities and enhancing skill sets Akhil Gupta, Chairman, Bharti InfratelRenowned ‘tower tsar’ of Bharti Enterprises, Akhil

Gupta’s keynote began with an examination of the origins and the future of the tower industry, reminding the audience that it is still young, and the concept is still controversial to many MNOs who consider their towers a source of tremendous competitive advantage. It is interesting to note that zoning restrictions played a part in the birth of the towerco model as they forced some of the initial cases of infrastructure sharing. After this came the development of monetisation and financial engineering for tower portfolio management, and the first instances of the sale and leaseback model. The real tower industry had its birth in Asia in India between 2007 and 2008; when astonishingly the three largest competitor MNOs agreed to cooperate and create Indus Towers, still the world’s largest


Akhil Gupta, Chairman, Bharti Infratel

towerco outside China. Operators found that while they competed on the front end they could work together on the back end.

The tower business model started to win over major stakeholders and many MNOs were convinced that it was the right thing for their business to transfer towers their towers into this emerging new class of infrastructure company. Operators are mainly focussed on sales and marketing and developing new services for their end users; however maintaining uptime is the main focus of towercos and it is a thankless, low tech, time consuming, 24x7x365 job. In some cases there were huge problems with MNO captive towers in a huge mess, poorly maintained, with “band-aid” solutions being used. India had and still has low ARPUs, and the MNOs and realised that the opex savings could be immense when adopting the towerco model. Indian telecoms was and is experiencing huge growth, and before the advent of the towercos two thirds of capex went into passive infrastructure. Faced with all of these factors, MNOs found that the easiest solution was to relieve themselves of the capex requirement, and focus their time and resources on what they do best. In spite of their objections the operators could not continue to oppose this shift and in the end only delayed the inevitable. There was a great need for improvement considering it was common to see four towers in one 50 square foot plot; the tower industry emerged from this. If the operators were going

to spend millions of dollars why not spend it on batteries and generators instead of towers and give the money to towercos? Instead of spending US$20,000+ to get a new tower up and running why not just lease a spot on an existing tower?This was the main idea behind the leap of faith that was taken; it became imperative to come up with a solution that was win-win-win for the incumbent, the towerco and the new tenants, and this is the basis of the Indian towerco model. Incumbents could have an automatic reduction of 20 - 22% on energy charge and rental for every new tenant that joined the tower. For the towerco a tower becomes profitable as soon as the second tenant is added, and their speed to market is the same as the incumbent; there is no discrimination. How many industries can say they make money when an existing customer pays less? But that’s how it works; the success of Indian tower companies depends on clients paying less and not more.

Towercos have two main objectives; first they are focused in the disarmament of operators – seeking to disarm their manpower and make it economically unfeasible for them to build their own towers. Secondly, towercos need to promote non-discriminatory sharing so that all tenants feel comfortable. Towercos can’t have single tenant sites as they are unprofitable, and every time operators perform a cost benefit analysis of build versus lease, building a new tower is never justified, and the same with loading new equipment on towers themselves. The towerco MSA is the same for all tenants, except if they are a large customer with larger tower portfolios they receive a larger discount. The result of this model in India is that practically no operators build their own towers and many towercos have all of the operators on their towers. Over the last six years our co-locations have increased at a CAGR of 8%, revenues at a CAGR of 11%. EBITDA margins have been increased to 42.9%

“ “How many industries can say they make money when an existing customer pays less? But that’s how it works; the success of Indian tower companies depends on clients paying less and not more – Akhil Gupta


and profit after tax has grown at a CAGR over 50%. The beauty of the model is that it doesn’t require more towers, it requires more tenants. There is a lot of discussion about what the future holds for the tower industry; the demand for data is great while there will continue to be a strong need for more coverage. Towercos are definitely benefiting from technology; every time a base station gets loaded with traffic the radius changes; the moment traffic comes this starts shrinking and it makes network planning go haywire. Towercos allow clients to install 3G equipment and then 4G equipment; it’s like opium and the speed to market we provide encourages them to rollout quickly. The increase in traffic determines when they will be forced to put up new towers, and, as long as they maintain the number of tenancies, the industry will continue to grow. Towercos need to keep the operators disarmed of all things tower related, and need to do this as our clients’ requirements change. We are seeing an increase in the number of indoor DAS sites; it was Gupta’s view that some towercos may start deploying their own infrastructure to enter this market, but this could cause a problem for the tower industry. It is important for towercos to remember that they should not compete with their own customers on Wi-Fi or DAS; whatever they do it should be based on the model of open sharing, and on a white label basis. Transmission is also critical, and with the growth of data more towers will require a fibre connection,

and once they can be connected to a transport network the most efficient service can be delivered. Long distance fibre like towers is part of the infrastructure and the MNOs should not concern themselves with it. High capacity microwave links are another possibility, and at some stage submarine cables for international connectivity; all of these should become a focus of towercos.The government of India is also promoting the creation of smart cities and these come with substantial capacity requirements which will need shared infrastructure. This will be a huge project and towercos are in a great position to play a part. It represents a great opportunity to get involved in managed services that are agnostic to operators. There will be a new market for infrastructure and this is a wonderful opportunity for towercos. Towercos do, however, need to avoid irrational

pricing wars like those that have happened between operators, citing regulations and the government’s involvement. Towercos can’t get too greedy and try to make profit at the cost of customers. It is positive to have many operators, but it’s good to have a few that are strong and financially stable and can respond quickly to market changes and adopt innovative new technologies. The tower industry is stable compared with other technology-related industries with more unpredictable revenue models, falling margins, irrational pricing, currency fluctuations, and the risk of technological obsolescence. Infrastructure management may not be as exciting as founding or investing in a dotcom, but it’s good to be in an industry that has solid, profitable cash flows. The tower industry has an important role to play and

73,921

124,819

FY 10

1.69 1.81 1.90 1.91 2.01 2.12Closing share factor

FY 10

FY 11

FY 11

FY 12

FY 12

FY 13

FY 13

FY 14

FY 14

FY 15

FY 15

Stable tower growth

...coupled with an increase in co-locations

Tow

ers

Co

-loc

atio

ns

78,442

142,086

79,064

149,908

82,083

156,608

83,368

167,202

85,892

182,294

CAGR3.05%

CAGR7.87%


a potentially bright future, but success or failure depends on our behaviour. Towercos can’t afford to get involved in wasteful competition, or become too greedy; if operators were to suffer while towercos make money it would be disastrous; there is a need to resist temptation and work together on this going forward.

Amit Sharma, Executive Vice President, President - Asia, American Tower CorporationAccording to Amit Sharma, the growth rate of the Indian market is now arriving at “the sweet spot;” 3G hasn’t really taken off, 4G is being

launched, and the entrance of a greenfield operator (Reliance Jio) is prompting incumbent operators to significantly upgrade their networks. Capex is expected to increase between 30-50%, but MNOs don’t want to invest most of that in steel and cement – and that’s where towercos can help. At the same time ARPUs remain quite low in this market; this is somewhat offset by rural mobile penetration which is at 20% currently and is expected to treble over the next five years. With smartphones using five to ten times more data than non-smartphones it’s plain to see where the increase in demand will come from. MNOs across India are putting

US$15bn into network upgrades and spectrum auctions. Currently the prevailing tenancy ratio in India is around two, and this is expected to increase to 2.5 in the next five years; meaning there will be approximately 225,000 new tenancies, representing huge room for growth. Amit Sharma predicts that this period of growth should last between three and five years. However the tower industry also faces challenges, not least of which being regulation. To date it seems that some regulators want us one day, and don’t want towercos the next day; regulators are of two minds about the role of the tower industry. Regulations can put restrictions on what towercos can and can’t do, limiting the amount and flavour of equity available, and sometimes limiting the scope of their business. In the long term this is not sustainable, but in the short term it doesn’t seem that regulatory restrictions are going away. Licensing, license fees and royalties are another aspect; many countries treat the tower sector as a goose that lays golden eggs, but they don’t apply much creativity into promoting its growth; instead they focus on how they can wring more out of the industry, as we have seen in markets where they are attempting to introduce licensing for towercos. This is happening both in Africa and Asia. In some cases every municipality wants a piece of the towerco pie and this can lead to one time fees for tower deployments, and in some cases ongoing fees which can add 10, 15 or even 20% on to the cost

Strong financial performance (Consol.)

70,297

34.4%24,185

2,530

31,288 35,269 38,103 44,118 50,108

FY 10

FY 10

FY 10

FY 11

FY 11

FY 11

FY 12

FY 12

FY 12

FY 13

FY 13

FY 13

FY 14

FY 14

FY 14

FY 15

FY 15

FY 15

Revenue(INR Mn)

EBITDA(INR Mn)

EBITDA(INR Mn)

EB

ITD

A M

argi

n

85,081

36.8%

5,515

94,521

37.3%

7,491

102,720

37.1%

10,025

108,267

40.7%

15,179

116,683

42.9%

19,924

CAGR10.6%

CAGR15.7%

CAGR51.1%

(1) Revenue and EBITDA are excluding Other Income (2) EBITDA margin % has been calculated on Sharing revenue


of a tower which is passed on to the towerco and its clients. Regulators don’t see this as an issue as they are charging a proportion but this goes against the grain in some countries where the regulators are also trying to develop and make connectivity ubiquitous. As operator margins are increasingly getting squeezed, MNOs are looking at every element of the ecosystem and seeking more efficiency. In many cases the cost of capital is very high, which puts the tower industry between a rock and a hard place: the customer expects their lease costs and opex to decline but the towerco model needs escalators to absorb these additional levies and taxes.The towerco model works: financial investors gravitate toward the predictable returns we generate, so we

need to find a solution to these additional costs before the model is compromised.. To address this, the tower industry needs to think about its role in the ecosystem in three, five, and ten years from now. MNOs are becoming consumer facing, service delivery focused organisations. This leaves the tower industry to run both passive and perhaps active infrastructure on a massive scale, and we must evolve further and become an even more efficient minutes factory; the cost per megabyte needs to decrease. The dividing line between MNOs and towerco needs to go. It makes no sense for the MNO to send a technician to visit a site to confidure the base station, then three days later for the towerco to send a technician to service the diesel genset: these jobs can be done much more

efficiently by one or other stakeholder. There are still efficiencies to be achieved and redundancies to be eliminated, and towercos are often better at identifying and acting on these than MNOs. Towercos need to widen their scope; provide maintenance of backhaul and active infrastructure; they need to identify opportunities to offer white label services such as Wi-Fi. Services like this can be deployed by operators, but they will require more DAS small cells; again the neutral host, sharing model will work best to achieve this. Finally, we have to run our operations even more efficiently. There is still room for improvement. Choosing the right energy solutions can make a difference; there are challenges such as pilferage that need to be overcome, and above all issues related to uptime and operational efficiency that escalate customers costs need to be eliminated. Towercos should extend the scope of what we do, but do so in partnership with our customers, not as a land grab. The tower industry needs to act together to achieve enhanced industry-wide best practices; no towerco is a standalone business, and events like the TowerXchange Meetup can play a critical role in facilitating this. India and Southeast Asia are on a roll and many are making the move from voice to data; we have to work together on robust network quality and coverage, increase the number of tenancies to deal with the challenges presented by cost pressures, regulatory limitations and license fees

“ “The tower industry needs to act together to achieve enhanced industry-wide best practices; no towerco is a standalone business – Amit Sharma


TowerXchange Meetup Asia 2015: event reportKey market data, audience analysis and photos from the foremost meeting place for the Asian tower ecosystem

72% of the attendees at the TowerXchange Meetup Asia were Director, VP or CXO level How we promote TowerXchange Meetups The core of our promotional campaign is TowerXchange’s proprietary database of the top 15,000 decision makers in the global telecom tower industry. The TowerXchange database includes the management teams of 153 towercos who between them own over 2mn of the world’s 3.3mn towers. We also maintain relationships with over 3,000 CXOs and Heads of M&A, Network Planning, Procurement and Tower Strategy at MNOs worldwide. TowerXchange is read by 542 investment and investment advisory firms, providing an invaluable interface with the providers of debt and equity to towercos, MNOs and their suppliers. TowerXchange also maintains the world’s most exhaustive database of telecom infrastructure suppliers, from tower manufacturers, managed service providers, to RMS, site management platforms, access control and energy equipment and service providers. Every month TowerXchange adds an average of 700 new highly qualified members to our community through a combination of “pull” marketing via TowerXchange research, and P2P introductions and

Read this article to learn:< TowerXchange’s latest market size and growth forecasts for towers in Asia

< Audience demographics and the delegate list from the TowerXchange Meetup Asia 2015

< How TowerXchange Meetups are promoted

< What to expect at the TowerXchange Meetup Asia 2016

209 leaders of the Asian tower industry gathered on 24 and 25 November at the Marina Bay Sands in Singapore for the 2nd annual TowerXchange Meetup Asia, with executive level representatives from 25 different towercos, including 12 of the 15 biggest towercos in Asia, plus their partners from MNOs, solution providers, investors and advisory firms. TowerXchange’s sold out expo highlighted passive infrastructure equipment and service providers from across the tower ecosystem, and the attendees benefitted from over five hours of insights and best practices during the roundtable breakouts. The world-famous Marina Bay Sands hotel once again provided the ideal setting for such a prestigious gathering of tower industry and telecoms professionals.

Keywords: Asia, Asia Research, American Tower, Bharti Infratel, Common Tower, Indus Towers, Tower Bersama, Market Forecasts, Market Overview, Research, Tower Count, TowerXchange, TowerXchange Meetup Asia, TowerXchange, Towercos


largest towerco, China Tower Company with an estimated 1,160,000 towers. For the first time there are more towers worldwide in towerco hands than operator hands, marking a major transition and the increasing acceptance of the independent towerco business model. TowerXchange predict strong growth in towerco penetration in 2016, with transactions likely in Indonesia, Bangladesh, Pakistan and potentially Thailand. Other markets to watch include India where we expect another 50,000 towers to be rolled out and where BSNL is in the process of spinning off its assets into a new towerco

research within the tower industry. A total of 108,829 personalised emails with industry specific messaging were sent to our database to promote the TowerXchange Meetup Asia. Our email campaign is supported by a direct mail campaign to 253 selected VIPs, and by a courtesy calls to over 1,000 key target attendees. A key component of our promotional campaign is the TowerXchange Asia Dossier – this annual publication collates and updates critical baseline data and the best interviews with key Asian tower industry stakeholders.

We use Google Adwords to amplify the findability of the dossier, and other selected industry news and analyses, attracting new, qualified members to our community. The TowerXchange Journal is our most important media partner; 94% of attendees were Journal subscribers, 66% of attendees had been interviewed in the Journal. The Asian tower market The Asian tower market has seen deal flow return over the past year with major transactions taking place in markets including India, Indonesia, and Australia. 2015 also saw the creation of the world’s

Towercos

Energy equipment or ESCO

MNOs

Investors

Managed service providers

Advisory firm

RMS and site management systems

Tower manufacturers

OEMs

Others

Audience profile, TowerXchange Meetup Asia 2015

32%

17%11%

9%

7%

7%

6%

4%4% 3%

TowerXchange are grateful for the support of our media and association partners for Asia:


100%

China 1,350,000 / 1,350,000 towers

India 425,355 / 500,000 towers

S & SE Asia exc India 151,656 / 339,693 towers

85%

N & East Asia exc China 0 / 258,850 towers

Oceania 4,192 / 15,700

towers

27%0%45%

* Europe includes JV infracos as towercos. Independent towercos own 9%

Sources: TowerXchange, RBC, Delta Partners, Mott MacDonald

End 2015 penetration of towercos in Asia

N & East Asia exc China 0 / 247,600

towers

44%

CALA 69,975 / 160,000 towers

SSA 48,214 / 122,739 towers

Oceania 2,692 / 14,900 towers

82%

1.4%

18%

MENA 2,040

/ 139,800towers

USA 114,139 / 140,000 towers

39%0%

100%27%

China 1,180,000 / 1,180,000

towers

S & SE Asia exc India 84,996 /

317,208 towersEurope 158,911

/ 600,000 towers*

India 305,355 / 450,000 towers

27%68%

End 2016 (f) penetration of towercos in Asia

Sources: TowerXchange, RBC, Delta Partners, Mott MacDonald

Why you can’t afford to miss the TowerXchange Meetup Asia 2016 on 13 - 14 December: 1. The only executive event to meet with Asia’s leading towerco CXOs and MNO tower strategists2. Stay on top of projected deals and regulatory developments in the Asian tower markets3. Strong growth in towerco penetration is expected in several markets including India, Bangladesh, Pakistan and Thailand4. For the first time, the TowerXchange Meetup Expo can be visited free of charge by buy-side decision makers!5. The new TowerXchange Investors Club will attract unprecedented representation from debt, equity and institutional investors6. The TowerXchange Meetup Asia 2016 will include senior representation from all Asia’s leading towercos7. Towercos and MNOs increasingly rely on TowerXchange to shortlist recipients of RFPs8. Learn where the next tower transactions are taking place, and who the new decision makers will be9. Identify where new tower builds and new technology rollouts are driving growth10. Meet with existing and new business partners within the Asian tower industry supply chain


Towerco penetration in Asia now and forecast for 2016

TowerXchange Meetup Asia Attendee List TowercosAmerican Tower Corp, Executive Vice President and President, AsiaAmerican Tower Corporation, Chief Strategy and Business Development OfficerApollo Towers MyanmarBeijing Miteno Communication Infrastructure Investment Co., Ltd., Vice General ManagerBeijing Miteno Communication Infrastructure Investment Co., Ltd., General Manager Assistant & Business Manager

Beijing Miteno Communication Techonology Co., Ltd., Chairman of the BoardCommon Tower Technologies, Chief Executive Officeredotco Bangladesh, Director, Operationsedotco Cambodia, Country Managing Directoredotco Cambodia, Head Of Business Developmentedotco Group, Chief Executive Officeredotco Group, Chief Financial Officeredotco Group, Chief, Sales & Corporate Affairs Officeredotco Group, Directoredotco Group

Director, Business Developmentedotco Group, Director, Engineeringedotco Group, Director, Strategy & Commercialedotco Group, Financial Controlleredotco Group, Head Of Regional Operations Centreedotco Group, Head Of Strategic Decision Support & Contract Managementedotco Group, Head Of Strategy & Analyticsedotco Group, Regulatory Advisor to CEOedotco Group, Specialist, Marketingedotco Group, Specialist, Marketing Communicationedotco Malaysia, Country Managing Directoredotco Malaysia, Director Of Sales & Marketingedotco Pakistan, Country Managing Directoredotco Sri Lanka, Country Managing DirectorGTL Infrastructure, VICE PRESIDENT -STRATEGIC INITIATIVESHelios Towers Africa, Executive ChairmanIndus Towers, CEO DesignateIndus Towers, Chief Sales and Marketing OfficerIndus Towers, Chief Supply Chain Management OfficerIrrawaddy Green Towers, CEOIrrawaddy Green Towers, Director and Board MemberJTOWER, Corporate Planning ManagerKomet Infra Nusantara, Chief Operating OfficerLink Development, Chief Executive OfficerMiteno USA, Inc., Director, Global Business DevelopmentMyanmar Infrastructure Group, Chief Financial OfficerMyanmar Infrastructure Group, COOMyanmar Infrastructure Group (MIG), President and Chief Executive Officer


100

Mya

nmar

India

Indones

ia

Malay

sia

Sri L

anka

Australia

Thailand

Banglades

h

New Zea

land

Cambodia

Vietnam

China

Russia

Pakistan CIS

80

60

40

20

69% 68%

61%

31% 31% 30%26% 20% 24%

68%

19% 18%

100%

76%

79%

20%

63%

34% 34% 34%49% 58%

20%

85%

6% 2% 1%

Current penetration

Forecast, Q1 2017

Pan Asia Tower, DirectorProtelindo, COOProtelindo, Director of Business DevelopmentProtelindo, Corporate Finance AdvisorPT Komet Infra Nusantara, Chief Financial OfficerQ Towers International, Chief Executive OfficerRussian Towers, Commercial DirectorSacofa Sdn Bhd, Chief Executive OfficerSacofa Sdn Bhd, DirectorSacofa Sdn Bhd, Senior Manager of Accounts ManagementSanyuan Tec, Chief Executive OfficerSanyuan Tec, COOSBA Communications, VP, Business DevelopmentSenno Telcom Co.,Ltd, Chief Executive OfficerSenno Telcom Co.,Ltd, Chief Operations OfficerService-Telecom, Chief Executive OfficerSTP, Chief Executive OfficerTower Bersama, FounderTower Vision, Associate DirectorTowershareTowershare, CTOTowershare, Director OperationsTowershare, General CounselTowershare, Strategy & Portfolio ManagerViom Networks, Chief Mentor MNOsAxiata, Board of DirectorsBharti Infratel, ChairmanCelcom Networks Sdn Bhd, Head Implementation & Roll Outedotco Group, DirectorEtisalat, Director Procurement / InfrastructureIndosat, Division Head Tower Planning &

EngineeringKDDI Summit Global Myanmar, ManagerMobitel Pvt Ltd, General Manager - Passive Network Infrastructure Business, Network Planning & OperationsMobitel Pvt Ltd, Manager – Passive Network Infra Business PromotionPT Indosat Tbk, Chief Strategy & Experience OfficerSeatel, Deputy Manager of Construction Dept

Investors and Investment AdvisorsDeutsche Bank, Head of TMT SEADirector, IGT, Chairman, Golden TowersGoldman Sachs, Managing DirectorIFC, Head TMT, AsiaIFC, Chief Investment OfficerJP Morgan, Executive DirectorKhazanah, AssociateKhazanah, Associate


Kicking Horse Capital, Managing DirectorMacquarie Group, SVP - AsiaMitsui & Co.,Ltd., Project ManagerMoody’s, Assistant Vice President - Portfolio of TelecommunicationsMubadala Infrastructure Partners Limited, General CounselProvidence Equity Asia Advisors, DirectorSCBAM – DIF, Senior ManagerSCBAM – DIF, Senior OfficerSCBAM – DIF, Senior Vice PresidentYCPLLC

Access ControlAbloy International, Business Development ManagerACSYS, Founder & COOACSYS, VP Sales, Asia Advisory FirmAllen & Overy, Senior Associate - CorporateCitigroup, MD, Head of Telecoms MEADelta Partners, PartnerHardiman Telecommunications, Managing PartnerHardiman Telecommunications, Managing

ConsultantKicking Horse Capital, AdvisorKPR Consult A/S, CharimanKPR Consult A/S, Chief Technology OfficerNomura, Equity research - Asian Telecom and MediaNomura, Managing DirectorPalladium Partners, Managing DirectorProvidence Equity Asia Advisors Pte Ltd, Managing DirectorRamboll, Market Head TowersRamboll India, Associate DirectorVinson & Elkins, Counsel, Hong KongVinson & Elkins, Senior Associate, LondonVinson & Elkins, Senior Associate, LondonAnalysys Mason, PartnerBMI Research, Trainee ICT Analyst Energy Equipment3Tech LionRock Power, Regional Manager EMEAAlsanj representing Ameresco Solar, General ManagerAscot Asia Pacific, Regional OfficerBallard, Sales Director of SEABladon Jets, VP Market DevelopmentBSB Power Company, CTOCaterpillar Asia Pte Limited, Sales Manager Energy Storage Asia PacificCoslight IndiaTelecom Pvt Ltd, VP SalesCoslight IndiaTelecom Pvt Ltd, Head International BusinessCummins Power Generation, APAC Telecom LeaderCummins Power Generation, General Manager, SEA & G-Drive


Eltek Power Pte Ltd, Executive Vice President – Business DevelopmentEltek Power Pte Ltd, Regional President -- APACEnatel Energy, Sales & Marketing ManagerEnerSys, Regional Sales ManagerErgos Energy, Managing PartnerFG Wilson, Sales Manager North & SE AsiaFlexenclosure, Regional Director, AsiaFlexenclosure, Director, eSiteGENPOWER ASIA, Managing DirectorGreenpole PS, CEOGS Yuasa, Asian Regional ManagerGS Yuasa, EMEA Regional ManagerH2,Inc., Chief Executive OfficerHeliocentris, GM APACHeliocentris, VP Sales and MarketingIPT PowerTech Group, GM- Telecom DivisionIPT PowerTech Group, VP & COOLFPO Technology Sdn Bhd, Business Development DirectorLFPO Technology Sdn Bhd, Managing DirectorLineage Power Pvt Ltd, Head of Engineering & R&DMahindra & Mahindra Limited, President & Chief Executive- Truck & Power Train DivisionMahindra & Mahindra Limited, Senior Vice President- Mahindra Powerol BusinessNorthStar, Technical & Marketing Director – Asia PacificNorthStar, Vice President Asia PacificPerkins Engines Co Ltd, EAME & CIS Regional DirectorPower Engineering / GENPOWER ASIA, PresidentRedflow, Global Sales DirectorSunco Energy SL, Director UtilitiesTOTAL, Head of Energy Solutions Department

Voltalia, Advisor to CEOWind-it, General ManagerZamil Infra, Vice PresidentZamil Infra, Vice President - SalesZHEJIANG NARADA POWER SOURCE, Regional Director of Asia PacificZHEJIANG NARADA POWER SOURCE, Managing Director Managed Service ProvidersATM Tower A/S, Chief Executive OfficerATM Towers Co. Ltd, Chief Executive OfficerElektroskandia (Shanghai) Co., Ltd. (Sonepar group), Director, Sales & Business DevelopmentElektroskandia (Shanghai) Co., Ltd. (Sonepar group), Managing Directorieng Group, Co-CEOieng Myanmar, Country HeadLeBLANC Communications, Program Manager - InfrastructureQuanta TowerGen Private Limited, DirectorQuippo Telecom Infrastructure Private Limited, President - International BusinessR.S. INFRA PROJECTS. Pvt. Ltd, DirectorR.S. INFRA PROJECTS. Pvt. Ltd, DirectorSagemcom, Deputy Sales DirectorSagemcom, Kenya Branch ManagerSalasar Techno Engineering Private Ltd, President RMS & SIte ManagementAccruent, General Manager, APACAIO Systems, Executive VP Sales & MarketingInvendis, CEOInvendis, COOQowisio, Sales Director

TelemisisTelemisis, Commercial DirectorInala Technologies, Group Executive: TelecomsInfozech, Founder & CEOTarantula Global, CEOTarantula Global, Director of Global Sales OEMsHuawei Technologies Co., LTD.Marketing ManagerHuawei Technologies CO.,LTDMarketing ManagerHuawei Technologies CO.,LTD Static Asset ManufacturersCUE DEE AB, Business Development & Sales DirectorEkiStruct, CEOGanges Internationale (P) Ltd., DirectorGanges Internationale (P) Ltd., GM - ExportsGSMtowers, CEOGSMtowers, Supply Chain ManagerInternational Telco Poles Pty Ltd, Managing DirectorNanhua, Vice Director of SalesShanghai Ambor Industries Ltd, PresidentAVIALITE Sdn. Bhd., International marketing managerMecc Alte, General Manager OtherCisco, Consulting Systems EngineerTAIPA, Director GeneralUnison Site Management, CEO and ChairmanUnison Site Management, Managing DirectorTeleconsult Group, CEO and Chairman


(Chairman) Daniel Lee Managing DirectorIntrepid Advisory Partners

Zhiyong ZhangChairman & PresidentMiteno

Akhil GuptaChairmanBharti Infratel

Michel FaivreDirecteur Programme Partaged’Infrastructure AMEA, Orange

Nina TriantisManaging Director, Global, Head of Telecoms & MediaStandard Bank

Terry RhodesCEOEaton Towers

Marc GanziPresident, Digital Bridge &Mexico Tower Partners

Arun KapurCo-FounderIrrawaddy Green Towers

James Maclaurinformerly CEOedotco

Areef KassamDirector of InfrastructureGSMA Mobile for Development

Ayman Al AdlDirector - TMTStandard Chartered Bank

Dagan KasavanaCEOPhoenix Tower International

Chuck GreenExecutive ChairmanHelios Towers Africa

Suresh SidhuCEOedotco

Malcolm CollinsChief ExecutiveCTIL

Ted ZhongCEOQ Towers International

Hal HessEVP, International Operations andPresident, EMEA and Latin AmericaAmerican Tower

Nobel TanihahaPresident DirectorPT SOLUSI TUNAS PRATAMA (STP)

Umang DasChief MentorViom Networks

Gilles KuntzCEOTowerCo of Madagascar

Maria ScottiCEOTorrecom

David MeganckFounder and COOAcsys

Tilak Raj DuaDirector GeneralTAIPA

Peter Owen EdmundsCo-founder and ChairmanRussian Towers

Kurt BagwellPresident InternationalSBA Communications

Jim EisensteinChairman & CEOGrupo TorreSur

Bimal DayalCOOIndus Towers

Inder BajajCEOHTN Towers

Riana DonaldsonManager: International Network Operations SupportVodacom

Tunde TitilayoVice ChairmanSWAP International

Jack DessayManaging DirectorMacquarie Capital

Jeffrey EldredgePartnerVinson & Elkins

Enda HardimanManaging PartnerHardiman Telecommunications Ltd.

Adeel BajwaSenior GM of Legal Affairs and Contracts, Warid Telecom

Scott CoatesCEOWireless Infrastructure Group

Carlo RamellaCOO, EI Towersand Chairman, Towertel

With special thanks to the TowerXchange “Inner Circle”About TowerXchange

TowerXchange is your independent community for operators, towercos, investors and suppliers interested in EMEA, CALA and Asian towers. We’re a community of practitioners formed to promote and accelerate infrastructure sharing. TowerXchange don’t build, operate or invest in towers; we’re a neutral community host and commentator on telecoms infrastructure.

The TowerXchange Journal is free to qualifying recipients. We also provide webinars and regular meetups. TowerXchange monetizes this community through hosting annual Meetups and the sale of advertising, without compromising editorial integrity.

TowerXchange was founded by Kieron Osmotherly, a TMT community host and events organizer with 16 years’ experience, and is governed with the support and advice of the TowerXchange “Inner Circle” – an informal network of advisors

Our informal network of advisers:

© 2015 Site Seven Media Ltd. All rights reserved. Neither the whole nor any substantial part of this publication may be re-produced, stored in a retrieval system, or transmitted by any means without the prior permission of Site Seven Media Ltd. Short extracts may be quoted if TowerXchange is cited as the source. TowerXchange is a trading name of Site Seven Media Ltd, registered in the UK. Company number 8293930.


TowerXchange’s analysis of the independent tower market in Asia

2,034,181 of Asia’s 2,691,032 towers are owned oroperated by towercos, representing 76% of the totalinventory of assets.

Insofar as there is an Asian tower industry, it is highly fragmented and localised, with very few stakeholders operating outside of a single country (edotco, ASEAN Towers and OCK Group being the sole exceptions to date). Nonetheless, there are

plenty of active buyers to fuel a healthy pipeline of prospective tower transactions, with prospective sale and leasebacks in Pakistan and Bangladesh, and the possibility of towerco consolidation in China, India, Myanmar and Vietnam. In this regional overview, TowerXchange consolidates snapshots and baseline data from all the Asian countries we have studied.

Afghanistan: An average of 500 towers are added to

the Afghan tower network every year, which totalled 5,897 towers in mid 2015. While Roshan, Etisalat and MTN all retain their towers, all have been linked with prospective tower divestitures / outsourcing in recent years, with AWCC going so far as to carve out ~1,500 towers into their subsidiary towerco, Frontier Tower Solutions. There are over 20mn subscribers and with upwards of 90% population coverage in Afghanistan. Most rural sites are off grid, and even many urban and suburban.

Australia: TowerXchange understands there are around 9,000 telecom towers in Australia, 74% of which remain operator-captive. Australia’s largest towerco is Axicom with 1,772 towers, formerly known as Crown Castle Australia, which was acquired by a MIRA-led consortium for US$1.6bn in 2015. This was the first major tower transaction to take place in Australia for some time, but TowerXchange is actively tracking more than one towerco with an appetite to enter this market. Broadcast Australia also operates a portfolio of 620 towers, some of which are leased out to MNOs. There are a number of smaller towercos in Australia which could become acquisition targets in a rollup play.

Bangladesh: edotco operates a network of 7,500 towers, the majority of which were transferred from Axiata’s Bangladeshi opco Robi. The edotco portfolio is maturing fast with 11 different customers including six MNOs.

Bangalink’s ~6,000 towers are believed to be coming to market as part of VimpelCom’s passive infrastructure monetisation process.

Selected Asian tower market size comparisons, Q2 2016

Asian tower market with <5,000 assets

Source: TowerXchange

China1,600,000

India454,664

Japan220,000

Indonesia86,679

Vietnam70,000

Bangladesh29,200

Thailand52,483

South Korea30,000

Malaysia22,000

Cambodia9,000

Philippines21,000

Australia9,000 Myanmar

10,750

New Zealand4,000

Laos7,374

SriLanka7,000Afghanistan

5,897

Pakistan40,704

Nepal6,000

Singapore1,000

Rest of Oceania400

Brunei250

Bhutan100

PNG1,500


There are around 29,200 towers in Bangladesh, with around 1,000 new towers going up each year.

The proposed merger between Bharti Airtel and the Axiata Group has been approved by the Prime Minister, and once completed will create the second largest telco in this market. The merger is likely to see Airtel’s Bangladesh towers managed by edotco in the near future. Robi has transferred its shares in edotco Bangladesh back to edotco Group, and edotco will seek a full tower management license.

While the BTRC advocates infrastructure sharing, a draft law on infrastructure management prohibits licensed MNOs from operating tower sharing companies and may restrict options for Axiata-owned edotco.

In the meantime it was announced that two tower management licenses would be issued to independent towercos by the end of the year, and the BTRC said that it would found one of them.

Cambodia: With a crowded operator market of seven operators serving a population of 15.5mn, and a regulator that supports infrastructure sharing, there is continued potential for the 9,000 site tower market in Cambodia to grow.

There has been an influx of Chinese operators and vendors prepared to invest heavily in this market. Challenges still remain including 20% of sites being off-grid and the risk of landmines in the more remote areas.

Estimated tower count for Bangladesh

Grameenphone

Banglalink

edotco

Airtel

Teletalk, CityCell and non-traditional MNOS

Sources: TowerXchange research, edotco, Hardiman Telecommunications

7,800

6,0007,500

3,800

4,100

Afghanistan tower counts, 2002-15

Afghan calendar year Western calendar year Tower count

1393

1392

1391

1390

1389

1388

1387

1386

1385

1384

1383

1382

1381

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2008-9

2007-8

2006-7

2005-6

2004-5

2003-4

2002-3

5897

5383

5005

4350

3977

3184

2736

2091

1067

567

311

89

0

Source: MCIT, Afghanistan


Source: TowerXchangeTower deals in Asia 2008-2016 (excluding carve-outs)Year Seller BuyerCountry Deal structureCost per tower US$Deal value US$Tower count

Company acquisition

SLB

Acquiring 51% controlling stake

Acquiring 75% controlling stake

Company acquisition

Company acquisition

Company acquisition

SLB

SLB

SLB

Company acquisition

SLB

Company acquisition

SLB

SLB

SLB

Company acquisition

Company acquisition

Company acquisition

SLB

SLB

$25,800

$100,000

$76,540

$176,800

$902,934

$34,121

$48,544

$131,429

$226,667

$207,600

$97,079

$111,943

$102,857

$133,722

$70,336

$98,266

$62,615

$135,428

$80,972

$50,000,000

$250,000,000

$1,180,000,000

$221,000,000

$1,600,000,000

$13,000,000

$15,000,000

$460,000,000

$68,000,000

$519,000,000

$432,000,000

$165,900,000

$1,800,000,000

$2,407,000,000

$23,000,000

$170,000,000

$34,000,000

$500,000,000

$9,907,900,000

1,938

2,500

42,200

1,250

1,772

381

309

3500

300

503

152

2500

595

4450

1482

17500

18000

327

1730

543

3692

105,624

OCK Group

Protelindo

American Tower

edotco

MIRA-led consortium

American Tower

YTL Power Int’l

STP

STP

Protelindo

Protelindo

Tower Bersama

Tower Bersama

American Tower

Protelindo

GTL Infrastructure

QTIL

American Tower

American Tower

STP

Protelindo

Totals / average

VNI

XL Axiata

Viom Networks

Digicel MTC

Crown Castle

KEC International

KJS

XL Axiata

Hutchison

Hutchison

PT Central Investindo

Indosat

Infratel

Essar Telecom Infrastructure

Hutchison

Aircel

Viom Networks

Transcend Infrastructure

XCEL Telecom

Bakrie

Hutchison

Vietnam

Indonesia

India

Myanmar

Australia

India

Malaysia

Indonesia

Indonesia

Indonesia

Indonesia

Indonesia

Indonesia

India

Indonesia

India

India

India

India

Indonesia

Indonesia

2016

2016

2016

2015

2015*

2015

2014

2014

2013

2012

2012

2012

2011

2010

2010

2010

2009

2009

2009

2008

2008

*Crown Castle Australia (now Axicom) transaction excluded from totals and averages as it not a natural comp for the other S and SE Asian transactions


edotco operates a portfolio of 1,700 towers in Cambodia. Local tower builder Cam Towerlink is also in the process of setting up operations as a towerco, and has secured its first contract to build towers around the Angkor Wat temple UNESCO World Heritage complex. Some operators in this market, such as Mfone, have fallen victim to the intense competition and price wars leaving some infrastructure assets abandoned.

China: China Tower Company (CTC) recently celebrated their two year anniversary, in the process disclosing a site count of 1.55mn in April 2016. A highly fragmented, fast growing ecosystem of 200+ local independent towercos brings China’s total tower count to around 1.6mn; almost half the world’s total!

CTC recently announced pricing which includes shared discounts of 20% with the addition of a second tenant and 30% with a third, plus an extra 5% discount for the anchor tenant. CTC’s average lease rates of CNY¥2166 (around US$325) are the lowest TowerXchange have seen by a considerable margin.

The 2015 funding round which saw China Reform Corporation (6%), join China Mobile (38%), China Telecom (28.1%) and China Unicom (27.9%) as equity stakeholders CTC valued the business at ~US$25bn - analysts expect a US$40bn+ valuation if CTC IPOs in late 2017, with growing speculation as to whether CTC will list domestically as an A-share or list on the Hong Kong stock exchange, opening CTC to international investment.

China tower market, Q216

The aforementioned Chinese independent towerco sector consists of hundreds of local service providers, cultivating provincial and city-level relationships with operators and governments, and often able to build a significant footprint within a finite jurisdiction. The only independent towercos TowerXchange has identified to date in China with quadruple digit tower counts are Guodong, Miteno and Sino Netstone.

India: 69% of India’s 454,664 towers are owned and operated by towercos, a figure which will rise to 82% when the BSNL towerco is inaugurated.

Valuations in the Indian tower market have been recalibrated and a new benchmark established by American Tower’s acquisition of Viom Networks, their 42,200 towers and almost 100,000 tenancies, generating a valuation of US$3.3bn. American Tower has acquired a 51% controlling ownership interest with Tata Group and several private equity groups retaining a stake. American Tower now owns 58,130 towers in the country.

The tower transaction market had hitherto been in stasis since the restructuring of the MNO license regime in 2012 led to the cancellation of 122


China Tower Company

Fragmented ecosystem of 200+

small independent towercos

1.5mn

50,000


licenses. MNO consolidation is on the cards again, but this time rational consolidation is welcomed by towercos who would prefer to see spectrum holdings consolidated into four or five companies with the capital to rollout. With India’s 3G overlay around half finished and expected reach 95% coverage in the next 18-24 months, the 4G rollout has already started in tier one and tier two cities.

The planned sale of Indian Reliance Communications’ (RCOM’s) 43,379 towers remains incomplete as Tillman Global Holdings (TGH) and their proposed investment partners TPG Capital

identified an insurmountable valuation gap during due diligence. TPG and TGH had submitted a non-binding offer for the towers in December last year, reportedly offering INR215 billion (US$3.2 billion) for the sites, which are currently held through RCOM subsidiary Reliance Infratel. Rumour suggests many of the sites lack structural capacity for additional tenants, with RCom as an anchor tenant and Reliance Jio taking much of the space at a discounted rate. New potential buyers include Brookfield Asset Management. The towers will likely remain unsold for the rest of the year as RCom and Aircel have signed a merger agreement, and the

integration will be the new focus for RCom for the next few months.

Bharti Infratel reported an increase in tower count 4,813 towers over Q2 2016, including their stake in Indus Towers. Bharti Infratel’s market cap was then Rs 729.55bn, and EBITDA for FY15-16 stood at Rs 5,403 Crore, an 8% YOY increase.

BSNL has received “in-principle” approval to carve out its estimated 65,000 towers into a separate towerco which could be valued up to US$3bn. A government working group has been formed to develop a capital and organisational structure for the new entity, though the process may take some time. Analysts are excited by the potential of these towers coming to market as many are in prime locations with considerable tenancy ratio growth potential, having not been proactively marketed before. BSNL has leased out 6,505 of its towers to other telecom operators, suggesting a tenancy ratio around 1.1. Out of the 6,505 spaces that it has rented out, Bharti Airtel accounted for 2,251 slots. It was followed by Reliance Jio with 1,440 slots and Idea and Vodafone with just above 900 towers each.

GTL Infrastructure, with just under 30,000 towers, Tower Vision with 8,400, Ascend Telecom with 5,200 and a number of smaller local companies complete the Indian towerco market. GTL Infrastructure losses narrowed to Rs 92.75 crore in their Q1 2016 update. New Silk Road has raised its stake in Ascend Telecom to 70% over the past four years.

Indus Towers

American Tower

RITL

Bharti Infratel

GTL Infrastructure

Tower Vision

Ascend

BSNL

Reliance Jio

Reliance

IDEA Cellular

Vodafone India

Bharti Airtel

MTNL

MTS

Others

Tower ownership in India in 2016 Sources: TowerXchange Research, TAIPA, PwC

120,739

58,130

43,379

38,64227,839

65,000

25,000

14,421

15,000

9,6008,000

5,00010,000

314

8,4005,200


Indonesia: Indonesia remains one of the most mature tower markets in the world, with solid tenancy ratios, excellent organic growth, and strong market caps boasted by three major towercos; Protelindo (14,737 towers), Tower Bersama (12,389) and STP (7,770). IBS Tower, KIN, Centratama (formerly known as Retower), Persada Sokka Tama and Balitowers all also have some scale in Indonesia. There have been rumours that IBS Tower, which has some ownership links with it’s number one tenant Smartfren, could be coming to market.

The Indonesian market is seeing some large investments in telecoms infrastructure in the pipeline. Protelindo’s parent company Sarana Menara Nusantara (SMN) is looking to raise IDR4.18 trillion (US$316mn) through a rights shares offering to fund expansion and to strengthen capital structure. Protelindo will use the funds to build new towers and invest in supporting services companies; a small portion will be used to repay Protelindo’s debts. At the same time, Tower Bersama Infrastructure Group (TBIG)’s shareholders approved a US$500mn bond issue to repay debts and fund expansion. The company is preparing up to Rp 2 trillion (US$145.72 mn) of capex this year to build between 1,500 and 2,000 new towers before year-end.

XL Axiata has completed the sale of 2,500 telecommunication towers to Protelindo for 3.56 trillion rupiah (US$250mn) in cash. XL signed a deal to leaseback most of the towers for ten years.

The future of Telkom-owned Mitratel and their 5,500

towers remains uncertain with the cancellation of the proposed share-swap acquisition of Mitratel by Tower Bersama at the behest of the commissioner. Telkom still has a further 18,000 towers on their balance sheet, of which 13,000 could potentially be sold at an unspecified point in the future.

Protelindo and Tower Bersama are holding firm against downward pressure on lease rates, which are believed to average around US$1,150 in Indonesia.

Meanwhile, the new battleground for competition between Indonesia’s towercos seems to be microcells and fibre, as illustrated by Protelindo’s acquisition of iForte. STP also has substantial fibre and microcell portfolios after its acquisition of fibre company Bit, while Balitowers have also added

substantial stock of smaller sites to their portfolio.

Japan: Japan is one of the most sophisticated mobile markets in the world. Yet towers are still seen as a source of competitive differentiation, which perhaps explains why initial interest in carving out a towerco a few years ago seems to have tailed off, and why tower count data is so hard to find – readers should consider our estimate a very rough guide. Japan is famous for having the fewest number of subscribers per tower in the world – reportedly around 500 – suggesting a staggering tower count of around 220,000 for a nation of 127mn people and a landmass of just 378,000 sq km. LTE was launched as long ago as 2011 by former State owned monopoly NTT DOCOMO and in 2012 by the nation’s other MNOs, SoftBank and KDDI (au). DOCOMO has already started rolling out LTE-A.

Estimated tower count for Indonesia

MitratelTower BersamaProtelindoSTPIBS TowerKINPersada Sokka TamaCentratama MenaraBalitowersOthers

Telkom + TelkomselXLIndosat


Towerco-owned

Operator-captive

11,389

5,500

14,476 12,389

18,000

4,000

8,500

2,1851,000450

1,000

4,790

3,000


Japan’s three leading MNOs are believed to have each added up to 30,000 microcells and small cells as infill sites. TowerXchange understand several tower companies are trying to establish themselves in the Japanese market, but that their penetration remains negligible.

Laos: The 7,473 towers in Laos all remain operator-captive, but there are possible opportunities to acquire towers from all but the market leading MNO: Unitel has 4,000 towers, and is a 51-49% joint venture between the State and Viettel. The State also owns 51% of number two operator LTC, whose co-investor Shenington Investments may seek an exit. 100% State owned MNO ETL is heavily indebted and needs cash for 4G rollout, while VimpelCom has long sought to exit Beeline Laos, whose towers could potentially be monetised by an acquirer.

Estimated tower count for Laos

LTC

Unitel

ETL

Beeline (VimpelCom)


4,000

1,100

423

1,950

Malaysia: Towercos own 31% of Malaysia’s towers, led by edotco’s 3,600 towers carved out of Celcom / Axiata. A further 3,200 towers are owned by 14 different State-backed and other independent towercos, while turnkey infrastructure provider OCK Group which owns 133 sites in this market.

There are around 22,000 towers now in Malaysia, representing almost exactly 2,000 mobile subscribers per tower. edotco aims to increase their Malaysian tower count by around 1,000 in 2016, although many new sites will be ‘special structures’ such as lamp posts. A new ground based tower in Malaysia costs around RM300,000 (US$69,000).

Around 1,000 new towers went up in 2015, with Celcom building through edotco and Maxis and DiGi building their own – although DiGi has since signed a collaboration agreement with edotco which

includes co-location and new BTS sites. The State-backed towercos also continued to expand, including through over 2,000 rural sites supported by Malaysia’s Universal Service Provision Fund. It has been estimated that an additional 8,000 structures may be needed in Malaysia for 4G, although much of that demand will be met by microcells, lamp-poles, DAS and IBS.

Myanmar: The rollout has seen Myanmar more than quadruple its tower stock since Telenor and Ooredoo launched two years ago. There are currently 10,750 towers in Myanmar, unequally spread across seven towercos and two operator stakeholders - MPT has around 2,600 towers, while fourth operator Viettel may utilise consortium partner Star Holdings Corporation’s ~1,000 towers, which were previously utilised by MECtel.

TowerXchange would divide the Myanmar towerco ecosystem into three categories: existing towercos of scale - IGT, Apollo and edotco; newer towercos competing on price - EFT and OCK; and towercos seeking an exit - PAMEL and MIG. Tenancy ratios are generally healthy, in the 1.35-1.9 range, and averaging around 1.5.

Even in major cities, grid power is unreliable, and in rural areas often non-existent, so Myanmar’s towers typically have robust backup power systems. Ooredoo’s dalliance with retaining power assets is now behind them, so all new towers are built on a tower+power business model.

For more detail on the Myanmar tower market, read


Estimated tower count for Malaysia Source: TowerXchange


Breakdown of ownership of the 10,750 towers TowerXchange estimates have been built to date in Myanmar

edotco

DiGi

Maxis

Telekom Malaysia

State backed towercos

YTL

OCK

Unaccounted for

1,000

3,600

3,400

3,800

1,000

3,200

5,000

133

1,876

2,000 3,000 4,000 5,000

Independent towerco towers MNO captive towers

3000

2500

1500

2000

1000

500

0

24001800

1250 12501000

2600

300 100 50

IGT Apollo edotco PAMEL EFT MIG OCK Viettel-MECtel

MPT

“Two tiered tower market emerges in Myanmar” later in this edition.

Nepal: Axiata Group has closed the acquisition of a majority stake in Nepalese market leader Ncell from TeliaSonera, in a deal believed to be worth US$1.365bn. There have been no tower deals in Nepal to date, but this move by the Axiata Group may pave the way for Axiata’s towerco edotco to enter the market in the near future.

New Zealand: We’ve heard two credible reports of prospective towerco activity in New Zealand, so don’t expect this ~4,000 tower, 6mn subscriber market to be dormant for long. 2degrees (Trilogy) has around 1,000 of those towers, Vodafone New Zealand and Spark about half each of the remainder. LTE is offered by all three MNOs. New Zealand’s US$175mn Rural Broadband Initiative (RBI) has accelerated investment in towers, targeting coverage in all communities with greater than 300 inhabitants. Under the RBI Vodafone had added 104 new towers and upgraded 305 others by Q2 2015.

Pakistan: The merger between VimpelCom (Mobilink), Global Telecom Holdings, Warid Telecom Pakistan and Bank Alfalah is now complete, creating a new combined entity with around 14,500 towers serving 45 million customers.

An unnamed towerco is believed to be in exclusive negotiations for the newly combined tower portfolios of Mobilink and Warid which, after decommissioning overlapping sites, will consist of around 13,000 sites. Parent company VimpelCom


is rumoured to be seeking close to US$1bn for the tower assets with the value boosted by the fact that Mobilink has been leasing out their towers at a commercial rate for the last five years, achieving a tenancy ratio of around 1.25.

Etisalat’s Ufone are also believed to have commenced a process to monetise their Pakistani towers.

The towercos currently active in active in Pakistan include edotco, which operates 13,000km of fibre in the country; Towershare, which has around 800 towers at present; and AWAL Telecom, which recently announced a BTS contract with Mobilink.

#2 MNO Telenor have recently reached an agreement with China Mobile Pakistan (Zong) to share their fibre-optic network assets, and the two operators are engaged in a landmark RANsharing trial, the first in Pakistan.

Philippines: While the scale of The Philippines – 100mn subscribers – makes it an interesting market, the current status of the mobile market as a virtual duopoly between Globe and Smart (with a rough estimate of a total of ~21,000 towers) would seem to preclude the participation of an independent towerco. Hope was offered by the prospective entry of SMC as a third MNO, but their proposed joint venture with Telstra recently collapsed, and Globe and Smart proceeded to acquire SMC’s telecoms assets, including some 700 MHz spectrum. However, a major rollout is under way in the country, and Philippine MNOs seem increasingly inclined to outsourcing towers to rid themselves of the challenge of securing the consent of would-be tower neighbors

Estimated tower ownership in Thailand

Source: AEC Advisory and TowerXchange

12,000

11,000

5,000

10,000

12,183

8001,500

Proposed DTAC-CAT towerco

DTAC towers built outside concession

AIS disputed towers built under CAT concession

AIS disputed towers built under TOT concession

AIS towers built outside concession

DIF (formerly TRUEIF)

True disputed towers built under CAT concession

Towerco penetration in Asia now and forecast for Q117100

Mya

nmar

India

Indones

ia

Malay

sia

Sri L

anka

Australia

Thailand

Banglades

h

Cambodia

Vietnam

China

Pakistan

80

60

40

20

67% 66% 65%

31% 31% 30%26% 26%

65%

19% 18%

100%

76%67%

34% 34% 34%59%

20%

82%

3%

Current penetration

Forecast, Q1 2017


(a NIMBY mentality still prevails), while taxation of cell sites is reportedly high and permitting complex.

South Korea: According to GSMA Intelligence, SIM penetration was at 113% among a population of 50.4mn in Q4 2015. South Korea boasts one of the most sophisticated telecommunications infrastructures in the world, cultivating an insatiable demand for high speed mobile broadband among its citizens. Mobile broadband penetration in South Korea is above 99% and fibre has been widely deployed. South Korea is a three operator market featuring SK Telecom, KT and LG Uplus, while the Ministry of Science, ICT and Future Planning (MSIP) has announced intention to license a fourth MNO. South Korea was the first market in the world to migrate the majority of users to LTE, with LTE-A rollout now well under way. TowerXchange are starting to pick up the first faint signals that towerco activity may be emerging in South Korea.

Sri Lanka: edotco had a tenancy ratio of 2.13 at the end of Q116 on the 2,100 towers they manage for Dialog. High levels of bi-lateral sharing means tenancy ratios are closer to two than one all over Sri Lanka. Sri Lanka is now mostly covered with 3G, and 4G is driving need for cell site densification. Dialog and Mobitel hold all of the 4G spectrum, and any other players that want to offer this will need to engage in RANsharing. There are around 7,500 - 8,000 towers in Sri Lanka.

Bharti Airtel had been rumored to be looking into selling its 2,500 towers, but seems to have cooled on the idea.

Thailand: Thailand has a tower market unlike any other in the world! Ownership of towers is in dispute as a function of BOT (Build-Operate-Transfer) concessions that are now expiring. Thailand’s three commercial MNOs were due to transfer 2G infrastructure back to SOEs CAT and TOT. The 2G equipment has little value, but of course the towers do. CAT, which ran the concessions for the 850 and 1,800 MHz bands, failed to reach an agreement with majority stakeholder DTAC to create a 49-51% JV towerco, into which 11,000 disputed towers were to be injected. Negotiations to create a prospective 12,000 tower JV towerco between AIS and TOT, which ran the 900 MHZ concession, were called off late in 2015.

CAT and TOT have started to discuss an informal partnership without a merger, and may consolidate some of their similar core businesses to remain competitive in the post-concession era. At the same time, AIS and TOT are expected to sign a contract signalling the launch of a joint-trial commercial service on the state agency’s 2.1 GHz spectrum.

TowerXchange estimate there are 47,483 towers in Thailand, of which 12,183 sit on the balance sheet of DIF, formerly TRUEGIF, a towerco created by True Corp and SCB Asset Management and successfully listed on the Thai stock exchange. DIF has little debt, a high leverage ceiling, and an appetite to consolidate more Thai towers – especially if True reduces their shareholding to increase the perceived independence of the entity.

A further 10,000 towers were built by AIS and 800 by DTAC outside the concession for 3G usage. True’s non-concession towers sit on DIF’s balance sheet… It all gets very confusing!

The steady leaseup of DIF’s towers is a good sign, but there is little progress towards any joint ventures. With one auction for 900MHz spectrum cancelled after the successful bidder Jasmin failed to pay its first installment, a re-auction was held in which AIS was the only bidder. The Thai market continues to be complex and unpredictable; this and the 49% FDI limit may deter some investors.

Vietnam: Vietnam’s largest independent towerco SEATH, with 1,938 sites (mostly guyed mast towers) is to acquired by Malaysia’s OCK Group for around US$50mn. OCK may seek to consolidate other members of a fragmented group of around 30 local towercos who between them own ~10,000 towers. Alcazar Capital and ASEAN Towers’ Vietnamese subsidiary Golden Towers’ has around 350 towers in the country, and may also be engaged in consolidating existing independently owned towers in Vietnam. Meanwhile the restructuring of Vietnam’s Ministry owned #2 and #3 ranked MNOs MobiFone and VNPT seems as far off as ever, limited the chances that a decent sized sale and leaseback opportunity could come to market in the mid-term. 4G spectrum in the 2.3 and 2.6 GHz bands, together with refarmed 900MHz spectrum, is expected to be auctioned in 2016. To date, towers have not been widely shared in Vietnam, hence considerable parallel infrastructure with an estimated 70,000 towers in the country


Asia heatmap

Note: Russia is covered under Europe; we estimate it to have a 5% towerco penetration and we expect it to be a growth market

TowerXchange research has not revealed any infracos or towercos to dateTowercos or infracos active in the market. No recent transactions have taken place and none rumoured to take place soonTowercos or infracos active in the market. No current transactions taking place but an attempted tower sale has taken place in the last 3 years or there are unconfirmed rumours of a deal in this market. Towercos or infracos active in the market. Rumours of deals confirmed in the market.Towercos or infracos active in the market. Deals of significant size have taken place in the last 5 years. Towercos or infracos active in the market. Deals have taken place in the last year and more imminent deals rumoured

Legend


Floorplan

edotco Group Sdn Bhd

Established in 2012, edotco is the first regional and integrated telecommunications infrastructure services company in Asia, providing end-to-end solutions in the tower services sector from tower leasing, co-locations, build-to-suit, energy, transmission and operations and maintenance (O&M).

With a regional portfolio that includes over 16,000 towers across edotco’s core markets of Malaysia, Sri Lanka, Bangladesh, Cambodia, Pakistan and Myanmar, edotco strives to deliver outstanding performance in telecommunications infrastructure services and solutions. edotco’s value-added services are supported by state-of-the-art real time monitoring service, echo, which has improved field operations while maximizing operational efficiencies in terms of battery, energy and fuel consumption for telecoms infrastructure.

Through its operations in developing Asian economies, edotco has established a strong track record in nation building. edotco has progressively invested in industry best practices, providing a broad portfolio of infrastructure solutions and offering value-added services to enhance efficiencies and connectivity for communities. edotco is committed to conducting its business in a responsible and sustainable manner for the benefit of its customers, employees, communities and developing nations.

For more information on edotco, kindly visit www.edotcogroup.com

221

222

321

322

421

422

521

522

605 604 603 602 601

215

216

213

214

211

212

106 105 104 103 102 101

201

202

301

302

401

402

501

502

Breakout/Sponsor rooms

Mai

n e

ntr

ance

& a

cces

s to

mai

n M

eetu

p r

oom

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Siterra, An Accruent Product

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Accruent’s telecommunications division serves some of the world’s largest mobile network operators and service providers in addition to tower companies, helping link employees from different organizations in the industry to collaborate to projects. Accruent is the largest independent provider of commercial property management software, serving the telecom, retail, education, healthcare, and corporate markets with over 5,400 customers in 120 countries.

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in Beijing, China, founded in 2004, Miteno has business

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market.

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IPT PowerTech

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Our global telecommunications team has extensive experience advising on international telecoms and telecoms infrastructure transactions. We have significant industry experience, advising on telecoms transactions in numerous countries, including across Africa and the Middle East. Our telecommunications advice includes acquisitions and disposals, debt and equity financing, infrastructure development, operational arrangements, regulatory matters and dispute resolution.

We also have significant experience in the negotiation and drafting of sale and purchase, debt and equity financing, master lease, build-to-suit, site management and service level arrangements; and have played a prominent role in complex fibre transactions.

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Miteno Communication Technology Co. Ltd.

Miteno (300038 SZ), is a leading non-state-owned

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Tarantula

Tarantula is a world leader in telecom site management software and a trusted partner of leading telecom infrastructure operators in 13 countries. Through its specialized site management toolset, Tarantula is a fundamental pillar of support behind the management of more than 350,000 mobile towers and assets worth US$25 billion around the world.

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Vinson & Elkins is one of the oldest and largest international law firms, with approximately 700 lawyers located in 16 offices around the world.

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www.nanhua.com

EnerSys

EnerSys® is the global leader in stored energy solutions for industrial applications. We complement our extensive line of motive power, reserve power and specialty products with a full range of integrated services and systems. With sales and service locations throughout the world. Headquartered in the United States, with regional headquarters in Europe and Asia, EnerSys employs over nine thousand people and operates 32 manufacturing and assembly facilities world-wide. This vast infrastructure and over 100 years of battery experience positions EnerSys at the forefront of both manufacturing capabilities and new product development.

www.enersys.com

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100% depth of discharge and their full capacity is usable over lifetime.

www.redflow.com

SONEPAR & CUE DEE

ELEKTROSKANDIA CHINA is a division of Sonepar Group based in France. We started operation in Shanghai in 1999, now is the leading professional in the market of Telecom Network Installation Materials and Sustainable Energy Business, and serving our customers globally through our vertical network of sister companies throughout the Sonepar Group of companies.

CUE DEE is today a leading global supplier of Antenna mounts, Brackets, Towers and Masts in both the Telecom and Wind energy sectors. We believe that for you as a customer our unique high quality product line coupled with our technical knowledge ensures a successful cooperation.

SONEPAR in association with CUE DEE at TowerXchange, together we can make it possible.

www.elektroskandia.com.cn

Enatel Energy

Enatel Energy delivers an expansive portfolio of configurable systems designed to meet every telecommunication network power requirement. Solutions offer flexibility and scalability,

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Our exhibitors by way of hot pluggable combinations of modular Rectifiers, Inverters, Converters, Solar/Wind Chargers and encompass advanced energy management. Enatel’s SYNERGi hybrid solutions include unique patented generator control capabilities allowing dynamic optimisation to accommodate off-grid site variables so ensure the highest levels of network uptime, ease of deployment and OPEX savings. Renewable energy inputs can be integrated simply and blended intelligently. Enatel Energy offers renowned support, reliability, and system efficiencies. Solutions are New Zealand made to guarantee design, manufacture and process integrity.\www.enatelenergy.com

TOTAL

Total is a global integrated energy producer and provider, a leading international oil and gas company, and the world’s second-ranked solar energy operator with SunPower. Our 100,000 employees are committed to better energy that is safer, cleaner, more efficient, more innovative and accessible to as many people as possible. As a responsible corporate citizen, we focus on ensuring that our operations in more than 130 countries worldwide consistently deliver economic, social and environmental benefits.

www.total.com

Cisco

With the rise of Internet of Things, people and things are being connected at scales that were once not possible. Large scale management of unmanned remote sites is now a reality with the possibilities provided by Connected Assets, giving

operators the visibility and controls to all aspects of remote site management such as environmental, operational health and surveillance and security. It can connect to everything onsite from generators and batteries over fuel tanks to the HVAC or doors, helping to detect critical events like theft or malfunction of equipment. Business intelligence can be automated with rule based policies for each site to harvest operational and productivity efficiency.

www.cisco.com

GENPOWER ASIA

Genpower was founded in Turkey in 2000. The business took off soon after and became a huge success in it’s Region including Middle East, Russia, Turkic Republics. 2010 The company decided to make its move to Asia & Pacific and established Genpower Asia in Singapore.

The easy access and financial stability in Singapore gave Genpower the opportunities to expand in the region. 2012, Genpower made the decision to move it’s production to India to address better the needs of the region with Cost effective products and quick deliveries.

Having supplied Gensets to many Telecom operators in the world, we know the needs of Tower companies best and come up with Unique Power solutions.

www.genpower.com.sg

AIO Systems

AIO Systems is a next generation solution provider of management systems for remote unmanned sites. AIO’s management platform and enhanced Premium EyeSite

controller are incorporated with site hardware and telemetry systems enabling companies to control, secure, predict, track and remediate their remote site operations in a timely and pro-efficient manner.

We specialize in advanced 24/7 Security solutions and Hybrid/Energy Resource Management. Furthermore, we address multi-tenant infrastructure complexities, reduce OPEX, increase profitability, assure access to BI services, and deliver effective Asset/Inventory control.

AIO’s numerous business models propose alternative operational structures that guarantee ROI. When combined with our added value Services, such as Site Installation Simulations, System Integrations, Technicians mobile application, companies can rest assured AIO will address all their RMS needs from A-Z.

www.aiosystems.com

Hardiman Telecommunications

Hardiman Telecommunications Ltd. was established in 1994. We are a boutique consultancy specialised in strategy development, due diligence assessment and valuation support. Our clients include major TowerCos, private equity funds, corporate finance / advisory and investment functions of leading banks, and telecommunications carriers. We are particularly active in end-to-end support of mergers, acquisitions and divestitures.

All of our staff have held profit-accountable positions with global telecommunications carriers, manufacturers and systems integration houses prior to joining us. This allows full support of clients across the continuum from technology through to market effectiveness, spanning engineering, commercial strategy, financial structuring and proven operating methodologies.

www.telecoms.net

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13 - 14 December, Marina Bay Sands, Singapore … · < Mohan Villavarayan, Managing Director Sri Lanka, edotco < Philippe Luxcey, CEO, Apollo Towers Myanmar ... 13-14 December, Marina