The Latin America Telecom Towers Market is expected to grow at a CAGR during the forecasting period (2020-2027).
Telecom towers are constructed with straight rods to support communications systems like broadcasting, mobile network, broadband, smartphones, television, etc. In different forms like square, triangular and polygon type aligned with straight vertical structure. Telecom towers are provided with power systems, including batteries and generators, to operate. Towers provide effective wireless communication and data transfer with the help of receivers, antennae, and dishes.
Recently information Communication and Technology (ICT) is the dominant industry with the advent of 5G and 4G networks worldwide to broaden the broadband and impending technological shift to 5G in the sector.
For instance, in July 2020, TELESITES, a Mexico-based telecom company, held a general shareholders meeting that approved a corporate restructuring that includes the transfer of 6,500 telecommunications towers by its subsidiary Operadora de Sites. Mexicanos, S.A. de C.V. to a trust agreement named “Fideicomiso Opsimex 4594.”
The market is driven by the rising demand for broadband connections with the advent of advanced technology for the growing penetration of internet connectivity through smartphones worldwide. According to the International Telecommunication Union, in 2016, the number of internet users was estimated to around 3.4 billion. This has been increased to around 53.6% of the global population, equivalent to around 4.1 billion people who were using the Internet in 2019. Thus the internet user penetration is increasing worldwide, which has created a huge demand for telecom towers over the forecast period. Hence the telecom industry is the fastest growing industry; as per the recent report of the Sustainability Accounting Standard Board Organization in 2019, the Latin American revenue generated through the telecom industry has been reached around USD 2 trillion.
There is a rise in the digital technology adoption like penetration of 5G network for providing the better network facility to the mobile and broadband internet users may create a huge opportunity for the telecom tower market over the study period. For instance, on 23rd Jan 2018, SK, a Korean telecommunications operator has been acquired Spectrum and formed a task force of 200-member for speeding up the process to launch commercial 5G services in the Asian country. Furthermore, in July 2019, Vodafone Company had been launched 5G service in seven cities of the United Kingdom and more than 20 cities of Europe, with the establishment of 120 base stations and telecom towers in 2019
The Latin America Telecom towers market is segmented based on Type of Tower, Installation, Ownership type, and region.
In terms of the type of tower, the Latin America telecom towers marker is bifurcated into Guyed Towers, Stealth Towers, Mobile Cell Towers, Monopole Towers and Lattice Tower. Among these, the monopole towers segment had the highest market share in 2019. It requires a small tower footprint and foundation, fast and easy to erect and versatile for different loading applications due to the increasing wireless communication industry. For instance, as of 2019, Reliance Jio Infratel Private Ltd had owned around 170,000 towers with a current valuation of around USD 5 billion. Further, Bharti Infratel and Indus Towers had owned around 163,000 towers together by 2019.
Similarly, Guyed Towers, Stealth Towers, Mobile Cell Towers, and Lattice Tower segments are also growing faster due to increasing the demand for wireless devices with the advent of advanced technology like 5G, IoT and cloud computing. According to the Cellular Telecommunications and Internet Association, the number of new wireless Internet of Things (IoT) devices is projected to reach around 28 billion around the globe by 2021. This will boost the demand for the various towers for connecting those devices wirelessly for better communication worldwide.
Depending on the installation, the Latin American telecom tower market is segmented into ground-based and rooftop. Among these, the ground-based segment had the highest share in 2019. This is primarily due to the rising installation of towers for the 5G network by leading manufacturing players due to the rising adoption of advanced technology worldwide. For instance, on 30th July 2018, T-Mobile has been partnered with Nokia with a huge deal of around 3.5 billion to deploy massive 5G networks in the United States.
Similarly, the rooftop segment is also growing faster due to a surge in demand for mobile networks with the surge in the number of internet users and growing urbanization around the globe. Thus it requires rooftop and ground-based towers for better connectivity. For instance, in the first quarter of 2020, America Movil’s Telesites Company has been added around 1,351 new telecommunications towers in Mexico and Costa Rica, which brings the total number of towers of the Company equal to 17,599. Depending on the ownership type, the Latin American telecom towers market is segmented into privately owned, mobile network operator owned, joint venture and operator owned. Among these, the joint venture & operator-owned segment has the highest market share in 2019. This growth is anticipated due to rising Latin American investment for developing the 5G network by making partnerships and joint ventures with telecommunication companies. For instance, on 18th February 2021, Altán Redes invited three major telecom companies in Mexico viz. AT&T, Movistar and Telcel to get connected with its 4.5G network. With this move, customers of AT&T, Movistar and Telcel who didn’t have access to the better network since they are located in remote areas can now get a better network through Altán infrastructure in those areas.
Similarly, privately owned, mobile network operator-owned segments are also growing faster due to an increase in the demand for connectivity for mobile networks in the urban and rural areas across the globe.
By region, the Latin America Telecom towers market is segmented into Brazil, Colombia, Peru, Panama, Chile, Ecuador, and Latin America. Among all of the regions, Mexico is the dominant region for the Latin America telecom towers market. It is expected to grow at the highest CAGR during the forecasted period due to advanced technology and increasing internet connectivity, followed by the Chile region.
Tower One Wireless, a Canadian based Telecom company, installed 75 new towers in rural areas of Mexico, Argentina and Colombia in 2020
Panama is the fastest-growing region for the telecom tower market's growth due to the growing adoption of internet connectivity with the surge in population in this region.
In February 2019, Phoenix Tower International (PTI) acquired 500 wireless towers from Uniti Group, whose sites are located in Mexico, Colombia and Nicaragua.
The Latin America Telecom towers market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. TELESITES, AT&T Inc, Pheonix Tower International, Grupo TorreSur, Telxius, Q4 Inc., Claro, Avantel, Verizon, SBA Communications Corporation and American Tower Corporation, are the leading market players with significant market share.
Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration.
Visualize the composition of the Latin America Telecom towers market products in terms of Type of Tower, and Installation highlighting the critical commercial assets and players.
Identify commercial opportunities in the Latin America Telecom towers market by analyzing trends and co-development deals.
Excel data sheet with thousands of data points of Latin America Telecom towers market-level 4/5 segmentation.
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**The Latin America Telecom towers market report will provide access to approximately 53 market data tables, 44 figures, and 178 pages
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