The telecom tower industry in India has evolved from captive model to independent business model over the years. With stupendous growth in wireless subscribers and entry of new telecom operators, the telecom tower base has shown a significant expansion in the country. However, last few years have shown a decelerating growth in terms of tower additions on account of over-supply of towers and limited expansion by telecom operators on the back of regulatory uncertainties. 3G roll-out has resulted in limited gains for tower companies as operators prefer roll-outs at existing 2G sites. Tenancies are expected to improve with the 4G services roll-out by the BWA licensees over the next few years.Tower industry in India suffers from poor tenancy ratio due to over-supply of towers in urban areas and lower expansion of players in rural areas.Recently awarded Infrastructure status is expected to bring some benefits to tower companies in terms of softer-interest and longer tenure loans, depreciation benefits etc. There is an increasing emphasis on green telecom as ~60% of the towers are powered by off-grid powerprimarily from diesel generators.
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