Welcome to the 2nd

TowerXchange Meetup MENANetwork name: Le Meridien Conference

Password: tower123Download presentations: www.towerxchange.com/mena-2020

GoldsponsorsDiamond sponsor

Silver sponsors Bronze sponsors

R

Key logistical information

Wi-Fi network name: Le Meridien ConferencePassword: tower123 First Aider: Please alert the staff at the registration desk who will assist you. Fire Evacuation: No planned fire tests, if the general alarm sounds, please leave the room immediately by way of the nearest fire exit and assemble at the Seafood parking assembly point. Come out of the building and turn right. Networking reception: 5-7pm in the exhibition hall Networking dinner: Dinner in the Wasl Ballroom at 7pm. Separate registration required. Directions: Exit through the double doors by roundtables E and F to the outside and turn right, staff will be on hand to direct you. Online networking tool: http://moreconference.com/towerxchange-meetup-mena-2020 quote the email address you used to register and use morecode: CC29D. The platform will remain live until two weeks after the event. Instructions for smokers: Outside the great ballroom

Meetup agenda

Day One | Tuesday

Plenary session

Plenary session

Networking refreshment break

Roundtable session I and TAWAL closed-door session

Networking lunch sponsored by

Roundtable session II and Helios closed-door session

Networking refreshment break

Plenary session

Plenary session

Networking reception in Expo Hall

Networking dinner in Wasl Ballroom

Day Two | Wednesday

Plenary session

Plenary session OTC closed-door session

Networking refreshment break

Roundtable session III and IHS closed-door session

Networking lunch sponsored by

Plenary session

Networking refreshment break

Plenary session

End of Meetup

TowerXchange’s analysis of the evolving Middle East & North Africa landscape and

changes in the ecosystemKieron Osmotherly, Founder & CEO, TowerXchange

Aninder Khera, Head of Research, Middle East & North Africa, TowerXchange

Join the conversation: @TowerXchangeCommunity: http://www.linkedin.com/groups/TowerXchange-4536974

Research: www.towerxchange.com

Networking club for towercosMeetups, CXO dinners, must-read-journal, 4 million words of research, who’s whos

ESCO Roundtable 24-25 March, Casablanca

Meetup Europe 2020 19-20 May, Barcelona

Meetup Americas 2020 23-24 June, Boca Raton

Meetup Africa 2020 13-14 October, Johannesburg

Meetup Asia 2020 8-9 December, Singapore

Meetup MENA 2021 26-27 January, Dubai

TowerXchange is tracking 304 towercos that now own 3,362,656 of the world’s 4,817,067 investible towers and rooftops (69.8%)

[1] China Tower Corporation area reduced to better illustrate the relative global market share of the other towercos - if illustrated to scale, CTC’s area would be 1.45x the rest of the

[4]Hutchison Towerco count excludes their UK and the majority of their Swedish towers to avoid double counting with MBNL and 3GIS [5] Towercos with <5,000 towers count

China Tower Corporation[1]

1,979,000

29 towercos with 5,000-19,999 towers297,443

258 towercos with <5,000 towers[5]

197,786

American Tower170,665

Indus Towers 127,946

IHS Towers 24,002

Guodong 20,000

Cellnex35,560

GTL Infrastructure27,707

INWIT 22,100

Orange towerco[3]

44,000

Vodafone Towerco[2]

44,100

edotco 29,924

CK Hutchison Networks[4]

28,500

Bharti Infratel 41,050Deutsche Funkturm33,000

SBA Communications30,768

Crown Castle40,039

Reliance Jio Infratel175,000

Source: TowerXchange

Towerco penetration and business models in different regions

Source: TowerXchange

China

India

CALA Oceania

S & SE Asia(Exc India)

Europe

N & E Asia(exc China)

96.1% 3.9%

39.4%

15.4%9%

36.2%61.6%21.4%

17%

100%

11%

42.5%46.6%

12.8%

87.2%

USA & Canada

6.5%

64.3%

29.2%

10.9%

SSAMENA94.2%

0.2%0.4%

5.2%4.3%

35.2%

60.5%

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

55.6%

13.1%1.2%

30.2%

11.9%72.7%

15.3%

Towerco 2.0: From steel and concreteto signal and service

Core tower & rooftopbusiness

Network-as-a-service

In

du

stri

al 5

G a

pps

Edge

Metro fibre FTTT BTS h

otels

C

onti

guou

s se

rvic

e

Indoor coverage

Wi-Fi Small cells DIS &

DA

S

Adv

erti

sing

Agg

regated data Io

T services Hosting sensors Street furnitu

re

P

ower

-as-

a-se

rvice

E

V charging Shared power system

s

A

rtif

icia

l int

ellig

ence

Data Monitoring

New services New assets

Diversity within the 275,104 tower MENA market

< Fewer than 6% of the region’s towers sit with towercos

< From mature GCC markets to developing markets

< From consolidation of parallel infrastructure to aggressive BTS

< From reliable grids to diesel-dependent tower networks

Source: TowerXchange

Saudi Arabia35,500

Iran37,106

Pakistan 35,043

Morocco19,054

Algeria19,000

Egypt22,704

Iraq14,769

UAE13,000

Tunisia8,383

Afghanistan6,645

Qatar5,000

Jordan6,836

Kuwait4,100

Lebanon 2,600

Bahrain1,500

Oman8,000

A history of tower transactions, joint ventures and towerco activity in MENA

2010

2016

2011

2017 2017 2017 2017 2019 2020

2014 2016 2016 2016

Bahrain & Jordan: Batelco explore the sale

of tower portfolios

Saudi Arabia: Zain and TASC

agree tower sale

Saudi Arabia: Saudi Telecom Company and

Mobily explore tower JV

Saudi Arabia: STC acquire GO’s

towers

Pakistan: edotco acquire

Tanzanite

2015

Egypt: Mobinil and Orange agree

tower sale

Pakistan: Jazz and edotco agree

tower sale

Kuwait: Zain and IHS Towers agree

tower sale

Oman:Oman Tower

Company established

Saudi Arabia: Zain and IHS Towers

agree tower sale

Iran: Fanasia commence commercial

operations

Saudi Arabia: Zain and Mobily commence tower

sale processes

Algeria: Djezzy explore tower sale

options

Saudi Arabia: Saudi Telecom Company and Mobily re-

open tower JV discussions

Cancelled Cancelled

Cancelled Cancelled

Mobily process cancelledAbandoned Active

Deal closed Active

2019

Saudi Arabia:STC establish

TAWAL

ActiveDeal closed Pending

Abandoned Abandoned

Cancelled

Drivers and inhibitors of the emerging tower industry in MENA

Drivers< Soaring demand for data and fiberisation < Freeing capital for 5G< Increasing operational efficiencies < Infrastructure sharing to reduce opex< Consolidate parallel infrastructure< Credit worthy anchor tenants< Strong local partners and interest from international firms < Investors keen to diversify into data centres and fibre < Regulatory stimuli

Inhibitors< Less financial pressure to monetise< Less operational complexity< Government stakes & security concerns< Network as competitive differentiator< Lack of clear regulatory frameworks< Political and economic instability< Track record of stalled SLB processes

Current and future tower opportunitiesin MENA

Towerco activity Towerco activity plus major tower sale rumouredMNOs rumoured to be considering a major tower transactionNo towerco activity or deal rumours

ACG operates 100 towers; ESCO?

edotco active, Jazz mayrestart SLB

Iranian Towers 1000 sites

Could towercos help rebuild?

TASC Towers established

Zain-IHS 1700 tower SLB

Tower sale rumor; OTC est.

STC carve-out 14200 to TAWAL

Tunisie Telecom rumours

HOI-MEA 38 sites;Orange & Etisalat ESCO RFPs;

New towerco licence imminent

Djezzy retains appetite Alfa ESCO with IPT

KSA tower market poised for growth

Source: TowerXchange

Saudi Telecom CompanyTAWALMobilyZain

14,200

2,400

11,000

8,100

< New towerco TAWAL < 14,200 carve-out of stc< BTS ambitions < Regional diversification

Kuwait

Source: TowerXchange

< IHS/Zain Towers deal of 1,700 towers< 4100 towers, significant parallel infrastructure< Towerco entrance will increase infrasharing < MNOs focusing on cost optimisation Zain

Ooredoo

Viva

1,700

1,200

1,200

BTS and ESCO opportunities in Oman

< Oman Tower Company established;

277 towers, BTS MOUs & SLB ambitions

< New MNO active in 2020

< Could see ESCO activity

< Omantel SLB in 2020?

What’s the future for Egypt?

Source: TowerXchange

< 23,000 Towers - 30% shared

< 4,000 subs per tower, the highest in the

MENA region

< New towerco licences in 2020

< Orange and Etisalat 1000 site ESCO RFP’s

< 1500 new sites per year

Etisalat

Orange

Vodafone

HOI

Telecom Egypt

6,000

2,00038

8,500

6,166

Morocco, Tunisia and Algeria

< Morocco: Offers the scale to attract international tower investment < Algeria: Djezzy keen to SLB, FDI rules permitting< Tunisia: Tunisie Telecom keen; Active infrastructure sharing; NATIC poised to BTS

MobilisDjezzyOoredoo

7,500

6,000

4,500

Algeria Morocco Tunisia

Maroc TelecomInwiOrange

10,000

5,000

4,054

Tunisie TelecomOrangeOoredoo

4,5002,500

1,383

Towercos professionalising infrastructure sharing in Pakistan

Source: TowerXchange

< Jazz towers coming back to market< Enfrashare (1,300) joins edotco (1,600)< Culture of infrasharing driving tenancy ratios 1.25-1.5< Decommissioning and power issues

edotcoTelenorCMPak (Zong)UfoneJazz (Deodar)AWAL TelecomEnfrashare

1,60045

1,300

7,400

7,100

6,100

11,700

Other MENA markets in brief

< Afghanistan: 100 site towerco ACG, Roshan and Etisalat both

exploring ESCOs

< Bahrain: TRA goal of site sharing from 12% to 40%

< Iran: MCI+RighTel+Fanasia 1000 site JV, MLL with MTN imminent

< Iraq: International capital for telecom infra

< Jordan: TASC Towers active

< Lebanon: IPT working as ESCO with Alfa and Touch

< UAE: 13,000 MNO captive towers; 5G front runners

MENA front runners of 5G evolution andsmart cities

< The criticality of infrasharing to enable 5G

< Stronger Towerco/MNO relationship to facilitate 5G rollout

< Demand for new typologies and fiberisation

< Govt smart city initiatives across region including KSA, GCC,

Egypt and North Africa

Thank you – enjoy networking with your peers!

An Company

R

EQUIPMENT RENTAL