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TowerXchange’s analysis of the global and European tower markets
Kieron Osmotherly, Founder and CEO, TowerXchangeFrances Rose, Head of Europe, TowerXchange
Join the conversation: Twitter: @TowerXchange
Community: http://www.linkedin.com/groups/TowerXchange-4536974
Research: www.towerxchange.com
Networking club for towercosMeetups, CXO dinners, must-read-journal, 3 million words of research, who’s whos
Meetup Americas 2019 9-10 July, Boca Raton
Meetup Africa 2019 8-9 October, Johannesburg
Meetup Asia 2019 3-4 December, Singapore
Meetup MENA 2020 28-29 January, Dubai
Meetup Europe 2020 19-20 May, Barcelona
The new market structure in which towercos own 67.5% of towers
TowerXchange is tracking 289 towercos that now own 67.5% of the world’s 4.44mn towers
China Tower Corporation*1,948,000
30 other towercos with 5,000-20,000 towers310,644
247 other towercos with <5,000 towers158,671
American Tower170,996
Indus Towers 124,069
IHS Towers 23,276
Cellnex 22,092
SBA Communications29,564
GTL Infrastructure27,707
edotco 29,837
Deutsche Funkturm28,000
Bharti Infratel 40,192
Crown Castle 40,039
Reliance Infratel43,000
Source: TowerXchange
* China Tower Corporation area reduced to better illustrate the relative global market share of the other towercos – if illustrated to scale, CTC’s area wouldbe 1.5x the rest of the industry combined
Towerco penetration by business model
Source: TowerXchange
China
India
CALA Oceania
S & SE Asia(Exc India)
Europe
N & E Asia(exc China)
97.5% 2.5%
12.3%
18.8%
10.7%
58.2%44.9%
26.2%
28.8%
100%
11%
42%47.3%
13%
87%
USA & Canada
6.6%
66.5%
27%
10.7%
SSAMENA99.5%
0.01%0.04%
4.5%34.1%
61.4%
Operator-led towerco Pureplay independent towerco Joint venture infraco MNO-captive sites
China
India
CALA Oceania
S & SE Asia(Exc India)
Europe
N & E Asia(exc China)
97.3% 2.7%
15.4%
15.5%
9.6%
59.6%46.6%
21.8%
31.5%
14.7%66.1%
19.2%100%
11%
36.1%48.2%
13%
87%
USA & Canada
7%
66%
27%
15.6%
SSAMENA99.5%
0.01%0.04%
4.6%59.2%
36.2%
Global
53.1%
14.2%1.5%
32.5%
14.4%66.3%
19.3%
European towercos
Figure one (a): Europe’s 21 telecom and broadcast towercos with >1,000 assets
Source: TowerXchange
Deutsche Funkturm
Cellnex Telecom
First Tower Company
Telxius
INWIT
Global Tower
Hivory
Arqiva
TDF
TowerCo
Omega Towers*
CETIN
American Tower
Russian Towers
EI Towers
OMTEL
Vertical
Rai Way
Wireless Infrastructure Group
RTRS
Service Telecom
5000 10000 15000 20000 25000 30000 35000
0
200
400
600
800
1000
Ceske
Open Tower
Company
Towerco
m Ltd
ESB Tele
com
s
Emite
l
Sotk
a Vyso
tok
Antenna H
ungaria
Office
of Public
Work
s
Digea
2RN
Hiber
nian /
Britannia Tower
s
Germany
Spain
Italy
UK
Turkey
Ukraine
France
Czech Republic
Ireland
Russia
Netherlands
Poland
Denmark
Slovakia
Finland
Sweden
Norway
Portugal
Kazakhstan
Serbia
Austria
Greece
Lithuania
Albania
Switzerland
Belarus
Estonia
Latvia
Turkish Republic of
Northern Cyprus
Hungary
CALA
28,000
7,9908,136
1,400
1,000
11,150
10,198
15,500
10,741
8,600
2,804
7,728
4,800
6,500
3,300
2,350
2,300
2,961
2,800
2,206 2,472
2,050
3,000 2,000 1,600
4,000
50 50
800860
Towerco
m A
S
700
Axion
584377
79
Share
d Acc
ess
300
300
HighTel
Towers
400 377 377200220
Teleto
wer
229
256
180 156 150
Spyder
142 140
Cignal
201
Highpoin
t (Obeli
sk)
Logyco
m
100
CIE
100 100
Falck
75
Konsing G
roup
47
556
Digita
l Colony
Österr
eichisc
her
Rundfunk
40
Telece
ntras
30
Levira
30
797 608
Radiokom
unikace
8,067 1,201 828 115
2,000 2,239
40000
*Omega towers are rooftops owned by Deutsche Funkturm, believed to be reducing from 7,700 in 2016 to 5,000 by 2020
Deutsche Funkturm
Cellnex Telecom
First Tower Company
Telxius
INWIT
Global Tower
Hivory
Arqiva
TDF
TowerCo
Omega Towers*
CETIN
American Tower
Russian Towers
EI Towers
OMTEL
Vertical
Rai Way
Wireless Infrastructure Group
RTRS
Service Telecom
5000 10000 15000 20000 25000 30000 35000
0
200
400
600
800
1000
Ceske
Open Tower
Company
Towerco
m Ltd
ESB Tele
com
s
Emite
l
Sotk
a Vyso
tok
Antenna H
ungaria
Office
of Public
Work
s
Digea
2RN
Hiber
nian /
Britannia Tower
s
Germany
Spain
Italy
UK
Turkey
Ukraine
France
Czech Republic
Ireland
Russia
Netherlands
Poland
Denmark
Slovakia
Finland
Sweden
Norway
Portugal
Kazakhstan
Serbia
Austria
Greece
Lithuania
Albania
Switzerland
Belarus
Estonia
Latvia
Turkish Republic of
Northern Cyprus
Hungary
CALA
28,000
7,9908,136
1,400
1,000
11,150
10,198
15,500
10,741
8,600
2,804
7,728
4,800
6,500
3,300
2,350
2,300
2,961
2,800
2,206 2,472
2,050
3,000 2,000 1,600
4,000
50 50
800860
Towerco
m A
S
700
Axion
584377
79
Share
d Acc
ess
300
300
HighTel
Towers
400 377 377200220
Teleto
wer
229
256
180 156 150
Spyder
142 140
Cignal
201
Highpoin
t (Obeli
sk)
Logyco
m
100
CIE
100 100
Falck
75
Konsing G
roup
47
556
Digita
l Colony
Österr
eichisc
her
Rundfunk
40
Telece
ntras
30
Levira
30
797 608
Radiokom
unikace
8,067 1,201 828 115
2,000 2,239
40000
Deutsche Funkturm
Cellnex Telecom
First Tower Company
Telxius
INWIT
Global Tower
Hivory
Arqiva
TDF
TowerCo
Omega Towers*
CETIN
American Tower
Russian Towers
EI Towers
OMTEL
Vertical
Rai Way
Wireless Infrastructure Group
RTRS
Service Telecom
5000 10000 15000 20000 25000 30000 35000
0
200
400
600
800
1000
Ceske
Open Tower
Company
Towerco
m Ltd
ESB Tele
com
s
Emite
l
Sotk
a Vyso
tok
Antenna H
ungaria
Office
of Public
Work
s
Digea
2RN
Hiber
nian /
Britannia Tower
s
Germany
Spain
Italy
UK
Turkey
Ukraine
France
Czech Republic
Ireland
Russia
Netherlands
Poland
Denmark
Slovakia
Finland
Sweden
Norway
Portugal
Kazakhstan
Serbia
Austria
Greece
Lithuania
Albania
Switzerland
Belarus
Estonia
Latvia
Turkish Republic of
Northern Cyprus
Hungary
CALA
28,000
7,9908,136
1,400
1,000
11,150
10,198
15,500
10,741
8,600
2,804
7,728
4,800
6,500
3,300
2,350
2,300
2,961
2,800
2,206 2,472
2,050
3,000 2,000 1,600
4,000
50 50
800860
Towerco
m A
S
700
Axion
584377
79
Share
d Acc
ess
300
300
HighTel
Towers
400 377 377200220
Teleto
wer
229
256
180 156 150
Spyder
142 140
Cignal
201
Highpoin
t (Obeli
sk)
Logyco
m
100
CIE
100 100
Falck
75
Konsing G
roup
47
556
Digita
l Colony
Österr
eichisc
her
Rundfunk
40
Telece
ntras
30
Levira
30
797 608
Radiokom
unikace
8,067 1,201 828 115
2,000 2,239
40000
European towercos
Figure one (b): Europe’s telecom and broadcast towercos with <1,000 towers
Source: TowerXchange
Deutsche Funkturm
Cellnex Telecom
First Tower Company
Telxius
INWIT
Global Tower
Hivory
Arqiva
TDF
TowerCo
Omega Towers*
CETIN
American Tower
Russian Towers
EI Towers
OMTEL
Vertical
Rai Way
Wireless Infrastructure Group
RTRS
Service Telecom
5000 10000 15000 20000 25000 30000 35000
0
200
400
600
800
1000
Ceske
Open Tower
Company
Towerco
m Ltd
ESB Tele
com
s
Emite
l
Sotk
a Vyso
tok
Antenna H
ungaria
Office
of Public
Work
s
Digea
2RN
Hiber
nian /
Britannia Tower
s
Germany
Spain
Italy
UK
Turkey
Ukraine
France
Czech Republic
Ireland
Russia
Netherlands
Poland
Denmark
Slovakia
Finland
Sweden
Norway
Portugal
Kazakhstan
Serbia
Austria
Greece
Lithuania
Albania
Switzerland
Belarus
Estonia
Latvia
Turkish Republic of
Northern Cyprus
Hungary
CALA
28,000
7,9908,136
1,400
1,000
11,150
10,198
15,500
10,741
8,600
2,804
7,728
4,800
6,500
3,300
2,350
2,300
2,961
2,800
2,206 2,472
2,050
3,000 2,000 1,600
4,000
50 50
800860
Towerco
m A
S
700
Axion
584377
79
Share
d Acc
ess
300
300
HighTel
Towers
400 377 377200220
Teleto
wer
229
256
180 156 150
Spyder
142 140
Cignal
201
Highpoin
t (Obeli
sk)
Logyco
m
100
CIE
100 100
Falck
75
Konsing G
roup
47
556
Digita
l Colony
Österr
eichisc
her
Rundfunk
40
Telece
ntras
30
Levira
30
797 608
Radiokom
unikace
8,067 1,201 828 115
2,000 2,239
40000Deutsche Funkturm
Cellnex Telecom
First Tower Company
Telxius
INWIT
Global Tower
Hivory
Arqiva
TDF
TowerCo
Omega Towers*
CETIN
American Tower
Russian Towers
EI Towers
OMTEL
Vertical
Rai Way
Wireless Infrastructure Group
RTRS
Service Telecom
5000 10000 15000 20000 25000 30000 35000
0
200
400
600
800
1000
Ceske
Open Tower
Company
Towerco
m Ltd
ESB Tele
com
s
Emite
l
Sotk
a Vyso
tok
Antenna H
ungaria
Office
of Public
Work
s
Digea
2RN
Hiber
nian /
Britannia Tower
s
Germany
Spain
Italy
UK
Turkey
Ukraine
France
Czech Republic
Ireland
Russia
Netherlands
Poland
Denmark
Slovakia
Finland
Sweden
Norway
Portugal
Kazakhstan
Serbia
Austria
Greece
Lithuania
Albania
Switzerland
Belarus
Estonia
Latvia
Turkish Republic of
Northern Cyprus
Hungary
CALA
28,000
7,9908,136
1,400
1,000
11,150
10,198
15,500
10,741
8,600
2,804
7,728
4,800
6,500
3,300
2,350
2,300
2,961
2,800
2,206 2,472
2,050
3,000 2,000 1,600
4,000
50 50
800860
Towerco
m A
S
700
Axion
584377
79
Share
d Acc
ess
300
300
HighTel
Towers
400 377 377200220
Teleto
wer
229
256
180 156 150
Spyder
142 140
Cignal
201
Highpoin
t (Obeli
sk)
Logyco
m
100
CIE
100 100
Falck
75
Konsing G
roup
47
556
Digita
l Colony
Österr
eichisc
her
Rundfunk
40
Telece
ntras
30
Levira
30
797 608
Radiokom
unikace
8,067 1,201 828 115
2,000 2,239
40000
Deutsche Funkturm
Cellnex Telecom
First Tower Company
Telxius
INWIT
Global Tower
Hivory
Arqiva
TDF
TowerCo
Omega Towers*
CETIN
American Tower
Russian Towers
EI Towers
OMTEL
Vertical
Rai Way
Wireless Infrastructure Group
RTRS
Service Telecom
5000 10000 15000 20000 25000 30000 35000
0
200
400
600
800
1000
Ceske
Open Tower
Company
Towerco
m Ltd
ESB Tele
com
s
Emite
l
Sotk
a Vyso
tok
Antenna H
ungaria
Office
of Public
Work
s
Digea
2RN
Hiber
nian /
Britannia Tower
s
Germany
Spain
Italy
UK
Turkey
Ukraine
France
Czech Republic
Ireland
Russia
Netherlands
Poland
Denmark
Slovakia
Finland
Sweden
Norway
Portugal
Kazakhstan
Serbia
Austria
Greece
Lithuania
Albania
Switzerland
Belarus
Estonia
Latvia
Turkish Republic of
Northern Cyprus
Hungary
CALA
28,000
7,9908,136
1,400
1,000
11,150
10,198
15,500
10,741
8,600
2,804
7,728
4,800
6,500
3,300
2,350
2,300
2,961
2,800
2,206 2,472
2,050
3,000 2,000 1,600
4,000
50 50
800860
Towerco
m A
S
700
Axion
584377
79
Share
d Acc
ess
300
300
HighTel
Towers
400 377 377200220
Teleto
wer
229
256
180 156 150
Spyder
142 140
Cignal
201
Highpoin
t (Obeli
sk)
Logyco
m
100
CIE
100 100
Falck
75
Konsing G
roup
47
556
Digita
l Colony
Österr
eichisc
her
Rundfunk
40
Telece
ntras
30
Levira
30
797 608
Radiokom
unikace
8,067 1,201 828 115
2,000 2,239
40000
How 5G ready are Europe’s macro towers?
Existing towers ready for 5G: 420,000Towers in need of review and/or upgrade: 120,000Towers in need of strengthening: 60,000New build: 51,50064%18%
9%
8%
Source: Delmec and TowerXchange
Europe new build heatmap
Source: TowerXchange
Data unavailable for this market
Up to 999 new build towers planned in this market
1,000-2,999 new build towers planned in this market
3,000-4,999 new build towers planned in this market
5,000-9,999 new build towers planned in this market
10,000+ new build towers planned in this market
Legend
123456
Europe breakdown
< Benelux: 2,000 new towers led by Cellnex, DFMG and Belgian MNOs
< France: 15,00 new towers led by Cellnex, Hivory, TDF and ATC Europe. Some new build by MNOs
< Germany: 11,000 new towers led by DFMG. Some new build by Telefonica
< Ireland: 1,500 new towers led by Cignal. Additional new build from towercos and MNOs
< Italy: 3,000 new towers led by INWIT and Cellnex
< Russia: 10,000 new towers led by Russian Towers and Rostelecom. Additional new build from
Vertical and Service-Telecom
< Scandinavia: 3,000 new towers led by MNOs and JVs
< Spain: 3,000 new towers led by Cellnex and Axion
< Switzerland: 700 new towers led by Cellnex
< Turkey: 4,000 new towers led by Global Tower and PTT Kule
< UK: 5,000 new towers led by Arqiva, Wireless Infrastructure Group and JV Infracos
Estimated tower and rooftop counts for selected markets in Europe
Russia126,660
Germany75,474
Italy55,108
France52,298
Spain49,461
Kazakh- stan15,400
Netherlands15,204
Poland22,000
CzechRepublic10,200
Finland9,576
Ukraine21,600
Greece12,000
Portugal11,800
Sweden8,080
Norway7,035
Denmark4,105
Ireland4,000
Georgia 3,000
Lithuania1,226
Latvia879
Armenia 2,200
Estonia530
UK42,500
Turkey49,032
Rooftops vs macro towers
CIS
Czech Republic
Germany
Netherlands
Poland
Portugal
Russia
France
Spain
Turkey
Switzerland
UK
20% 40% 60% 80% 100%
Urban infrastructure (rooftops) Macro towers Streetworks, picos and micros inc in rooftops
IBS and small cell success stories
“StrattoOpencell now has over 90 customer sites, with thousands of femto cells live”- StrattoOpencell “We believe that Metrohaul is a game changer that can unlock the potential of small cell, so we can start to see small cell deployments on the scale that is needed to support the UK’s ambi-tions for digital infrastructure”– Ontix “Space World already has 500+ indoor sites, rep-resenting nearly 250mn square feet of covered area, making us the market leaders in India” – Space World “We operate more than 66 DAS/small cell instal-lations across the U.S.” – InSite Wireless Group
“We have deployed tens of thousands of DAS networks, small cell nodes and cell towers across the U.S. and internationally” - Mobilitie “It takes many different groups to bring connec-tivity to the public and private sectors, plus city and state-owned venues… We bring the neutral host environment to the table, allowing all four major carriers to operate within one network” – Neutral Connect Networks “We are the edge of the network. We have in-building solutions in major commercial build-ings and venues across the country where we can deploy mobile edge computing. We are per-fectly positioned” - ExteNet
Forecast installed base of enterprise small cells
One or more MNOs or telcos Wholesaler/neutral host Private/vertical operator Enterprise
3,500
3,000
2,500
2,000
1,500
1,000
500
2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: Analysys Mason(figures in ‘000s)
Forecast installed base of outdoor small cells
1,500
1,200
900
600
300
2017 2018 2019 2020 2021 2022 2023 2024 2025
One or more MNOs or telcos Wholesaler/neutral host Private/vertical operator EnterpriseSource: Analysys Mason(figures in ‘000s)
Russian Towersurban infrastructure pioneers
CETIN exemplar of abona fide all-infraco
INWIT 5G rolloutwith Vodafone ATC Europe:
Paris2Connect
Cellnex AdaptiveEdge (Spain),Alticom (Netherlands),
CommsCon (Italy), Xarxa Oberta de Catalunya(Spain – Barcelona)
Arqiva fiberized small cells and smart cities
Digital Colony: Opencell,Stratto, Digita
TDF: Fibre
Innovation and vertical integration inEuropean towercos
Sale and leaseback to independent towerco MNO carveout
SLB vs carving out – in numbers
Numberof towers
2014
2014
30,00025,00020,00015,00010,000
5,000
3,000,000,0002,500,000,0002,000,000,0001,500,000,0001,000,000,000
500,000,000
2017
2017
2016
2016
2015
2015
2018
2018
Moneyraised
385,000,000693,000,000
194,820,000
875,000,0001,300,000,000
0
0 0
1,311
1,494,000,000
4,277 7,377 11,20016,000
26,489
0 06,490
2,673,000,000
MNO vs towerco valuations
Source: Capital IQ, Company Filings, Isfandiyar Shaheen presentation
- Integrate telecom carriers across the above 5 markets trade at 6.4x EV/EBITDA on average- Infrastructure only assets across 5 markets trade at 16.6x EV/EBITDA on average
Enterprise value divided by EBITDA25.0x
9.5x5.3x 3.5x
7.2x 6.4x
13.9x
22.3x
8.8x
23.6x
15.3x
20.0x
15.0x
10.0x
5.0x
Bharti Airtel
TelecomItalia
ChinaMobile
TelefónicaAT&TBharti Infratel
India Spain China America Italy
INWIT ChinaTowers
CellnexAmericanTowers
Source: TowerXchange
MNO Captive
JV infraco
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
Q4’19Q2’19 Q4’20 Q4’21
349,090 313,507
64,400167,723
112,740
48,400
73,770 82,370129,670
168,523
53,400275,407
173,670
171,023
58,400
243,907
Nu
mbe
r of
tow
ers
Operator-ledinfraco
Independenttowerco
Projected tower ownership in Europe
< Carve outs continuing< Longer term more towers moving into independent towerco hands< Shrinking of joint ventures as this segment is monetised< New build to outpace decommissioning< Focus on urban infrastructure
Trends and forecasts
12.3%
18.8%
10.7%
58.2%
26.8%
26.4%9%
37.7%
European towers Q4 2021European towers Q219
