Covid-19 Impacts Telecom Towers Market

Before Covid-19 Market Scenario

• Over the last few decades, the telecommunications industry has experienced great technological advancements, with mobile, broadband, and internet services expanding in capabilities and reach around the world.
• Prior to Covid-19, demand for telecom towers was expanding due to an increase in the number of mobile phone users in practically every rural region, resulting in increased rivalry among service providers to provide improved network coverage.
• Tower companies’ basic offering and business strategies have been successfully adapted to meet the needs of new markets in Africa, Southeast Asia, Europe, China, and, most recently, the Middle East. There is just a small amount of land remaining for the industry to inhabit.
• The telecom industry's "grass and steel" participants have traditionally been tower companies. They've located a suitable site reasonably priced, handled permits and building, and collected carrier rent. It's a model that worked well when carriers were focused on broadening their reach.
• The International Telecommunication Union (ITU) predicted that there were over 4 billion internet users worldwide at the end of 2019, with over 3 billion in developing countries. Many people and businesses remain isolated despite developments in internet and mobile service access.
• The global telecoms towers sector is expected to rise as the number of smartphone users grows. Mobile phone users are growing in almost every remote location, creating competition among service providers to provide better network coverage.
• Furthermore, an increasing number of telephone service providers, internet service providers, Wi-Fi and broadband service providers are likely to increase demand for telecom towers over the forecast period.

Present Covid-19 or Future Scenario

• The telecom tower has been a massive support for extending the services to run businesses further online, enabling corporates to extend work from home opportunities, and keeping individuals connected for medical support and other necessities under the COVID-19 scenario even though the telecommunications sector declined during the initial lockdown phase.
• At the start of COVID-19, the supply chain for the fundamental materials used in tower installation was disrupted. Owing to migration, there is a manpower shortage, it is difficult to execute maintenance operations, and market instability has resulted in massive losses due to tower construction project delays. The tower market has borne the brunt of the lockdowns.
• By the end of 2020, demand for telecommunications infrastructure had skyrocketed as customers migrated to the internet.
• Tower companies have expressed interest in more sites that did not have connections prior to becoming a greenfield market. The resuscitation of the tower company is credited to the exemption for a telecommunications tower under the containment zones, the restart of shipping and the supply chain at the end of the year, and an acceptable personnel eager to return to work under the revival scenario.
• The Covid-19 epidemic and continuously high levels of poverty and unfairness are some of the roadblocks to rural areas acquiring internet connection. The epidemic has also demonstrated how new and advanced technologies can help rural populations thrive by bridging the rural-urban divide.
• Because internet and telecommunication is considered an essential service; the telecommunications industry has been exempted from significant COVID-19-related limitations, such as stay-at-home orders and quarantine requirements, in contrast to many other industries.

After Covid-19 or Future Scenario

• Due to a large portion of the population staying at home and remote working conditions, the telecom industry has seen a huge surge in demand for internet services after the outbreak of COVID-19.
• The number of telecom towers being built has increased dramatically in recent years. According to telecommunication exchange websites, over 250,000 towers were expected to be installed globally in 2020, with Chinese and Indian operators contributing the most to new tower installations.
• Furthermore, in the middle of the present epidemic, officials throughout the world have recognized telecommunications as a key infrastructure, with activities in the telecommunications industry projected to remain intact. 
• During the continuing pandemic, the general increase in internet traffic contributed significantly to the expansion of the telecom tower business.
• Consumer data demand is increasing, resulting in a competitive telecom ecosystem across geographies. Tower operators have been able to achieve operating efficiencies as tower sharing has become more prevalent among Mobile Network Operators (MNOs).
• The ownership of towers varies from one region to the next. As a main source of difference in Asia Pacific, operators cling to their towers. In contrast, in the US tower industry, the bulk of towers have been moved from MNOs to independent enterprises for a long time.
• In nations like India, mobile carriers choose to own their own towers through captive tower subsidiaries or joint ventures in which they share ownership with other operators.
• China Tower operated 2.01 million tower sites as of June 2020, up 21,000 from the end of 2019, while the total number of tenants increased 1.2 percent to 3.12 million.

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