Increasing Tower Sharing Is One Of The Significant Market Driving Factor For Telecom Tower Market
- Sharing the same mast, antenna frame, or rooftop with other operators is a step-up of tower sharing. The history of tower sharing may be traced back to the two-decade development of GSM services, when operators' normal organizational model was a unitary, vertically integrated one in which backhaul and base stations were owned and operated internally.
- The cost reductions achieved through tower sharing can be significant, as it eliminates a number of base stations or other infrastructure where coverage is essentially replicated.
- Telecommunications companies that own and operate their own towers face rising capital expenses and hefty operating costs. As a result, operators are being pushed to reorganize their tower businesses into infrastructure sharing.
- In most developing economies, tower sharing has mostly been an operator-led activity, although regulators have also played a crucial role in assuring uptake of tower sharing projects. Tower sharing reduces the environmental and visual impact of operator networks, especially in urban and ecologically sensitive locations, by preventing the development of towers. Tower sharing also encourages competition by lowering the barrier to entry for new operators.
- Over 250,000 towers were expected to be installed globally by 2020, according to telecommunication exchange websites, with Chinese and Indian carriers providing the newest tower installations. These towers are responsible for operator-owned tower businesses, including new towers held by companies like Vodafone, Reliance Jio, Orange, and Hutchison.
Increasing penetration of smartphone and internet users
- The global telecom towers sector is expected to rise as the number of smartphone users increases. Mobile phone users are growing in almost every remote location, resulting in increased 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 predicted to increase demand for telecom towers over the forecast period.
- According to the International Telecommunication Union, internet users will make up more than 59.5 percent of the world population, or 4.66 billion people, in 2020. As a result, worldwide internet user penetration is increasing, creating a high need for telecom towers for the foreseeable future.
- As more people work from home, there is a higher demand for downloading, online video viewing, and video conferencing, which all contribute to increased network traffic and data usage. According to a recent analysis by the Sustainability Accounting Standard Organization, the global income of the telecom industry is predicted to exceed USD 1.6 trillion in 2020.
- The usage of digital technologies like 5G networks to give better network services to mobile and broadband internet users is on the rise, creating a huge opportunity for the telecom tower market. Furthermore, rising demand for Internet of Things (IoT) connectivity, increased use of mobile apps, and ongoing technological improvements have enhanced the quality and speed of service delivery, driving the telecom towers market.
Rapid urbanization and increasing rural area smartphones users
- Rapid urbanization has accelerated the development and acceptance of technology and smartphone penetration, resulting in increased annual data usage across wireless networks around the world. The facilitation of greater revenue has improved the general economy, particularly in rural areas.
- As a result, increased telecom tower penetration in rural and off-grid areas will be one of the key driving forces for market expansion throughout the projection period, allowing for job creation and lower unemployment rates in these areas.
- Furthermore, as the level of urbanization has increased, telecom tower penetration in rural and off-grid areas has increased, resulting in significant growth in telecom tower demand. In addition, a growing cellular network user base needs a more robust communications infrastructure, which necessitates the deployment of additional towers.
- Because of the significant increase in the percentage of internet users and the growing use of smartphones in both developed and developing countries, the telecommunications business has been rapidly expanding in recent years.
- For example, the most significant advancement in mobile broadband coverage in 2019 occurred in India, when Reliance Jio's 4G network52 (followed closely by Airtel53) covered about 100% of the population, surpassing both 2G and 3G coverage. Since 2016, Jio collaborated with Samsung on a faster LTE deployment, installing a significant number of small cells to expand its network in both urban and rural areas.
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