Welcome to the 6th

TowerXchange Meetup AsiaWi-Fi network name: towerxchange

Password: tower123Download presentations, courtesy of Acsys International Ltd:

https://www.towerxchange.com/asia-2019/

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Key logistical information

Wi-Fi network name: towerxchange Password: tower123 First Aider: Call the MBS MICE team from our TowerXchange registration desk. Fire Evacuation: No planned fire tests, if the general alarm sounds, please leave the room immediately by way of the nearest fire exit (these are all to the opposite end of the building of the escalators) and assemble at the Water Taxi (south) pier. The Convention Centre Staff will alert us when it is safe to re-enter the building. Drinks reception, courtesy of edotco: This evening in expo hall. Networking dinner: 19:30 at ‘Adrift’ by David Myers (separate booking required – enquire at registration desk). Location – Marina Bay Sands, Hotel Lobby Tower 2. Online networking tool: http://moreconference.com/towerxchange-meetup-asia-2019 quote the email address you used to register and use morecode: D32C6. Download presentations, courtesy of Acsys International Ltd: https://www.towerxchange.com/asia-2019/ No smoking within premises

Meetup agenda

Day One | Tuesday

Plenary session

Networking coffee break sponsored by

Plenary session

Roundtablesession I

Indus Towers closed-door session (invite only)

Networking lunch

Roundtablesession II

Technology working group on energy management (invite only)

Networking coffee break sponsored by

Roundtable session II

Indosat Ooredoo closed-door session (invite only)

Networking dinner at Adrift

Day Two | Wednesday

Plenary session

Roundtable session III

Networking coffee break sponsored by

Plenary session

Networking lunch sponsored by

Roundtable session IIV and Data collection and utilisation working group

Plenary session

Networking coffee break sponsored byand end of Meetup

TowerXchange’s analysis of the global and Asian tower markets

Kieron Osmotherly, Founder & CEO, TowerXchangePablo Crespo, Head of Research, Asia & Americas, TowerXchange

Join the conversation: @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 MENA 2020 28-29 January, Dubai

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

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

Are you ready for the 5G future?Lessons from China

< Enabling infrastructure for 5G

< New build slows 64%

< Leveraging ‘social towers’

< >50% of network capex indoor

CTCIndependent towercos

3.9%96.1%

Source: TowerXchange

Indian market restructuring ongoing

< Indus-Bharti and RJio Infratel-

Brookfield deals imminent

< Despite MNO restructuring,

financial struggles continue

< RJio keeps growing and pushing

innovation

< What future for smaller towercos?

Consolidation?

< Future: BSNL/MTNL towers?

Innovation and diversification

Indus Towers

Reliance Jio Infratel

American Tower

Bharti Infratel

GTL Infrastructure

Tower Vision

Ascend Telecom

Railtel

Saurava Towers

BSNL + MTNL

Bharti Airtel

Others

Source: TowerXchange

127,946

175,00075,073

27,707

41,050

15,0005,000

75,000

8,4006,3552,000

100

Bangladeshi tower market finally moving

< New towercos had a complicated first year...< But now moving in the right direction< MNOs still need thousands of towers< Robi and GrameenPhone face dispute

Grameenphone

Banglalink

Robi

edotco

Teletalk, CityCell andnon-traditional MNOs

Sources: TowerXchange research, edotco, Hardiman Telecommunications

14,000

9,0001,500

10,095*

4,100

Towercos professionalising infrastructure sharing in Pakistan

< Jazz towers coming back to market< Dawood’s Enfrashare (1,300) joins edotco (700)< Culture of infrasharing driving tenancy ratios 1.25-1.5< Decommissioing and power issues

Source: TowerXchange

edotco

Telenor

CMPak (Zong)

Ufone

Jazz (Deodar)

AWAL Telecom

Enfrashare

70045

1,300

7,400

7,100

6,100

11,700

Telecom tower activity in MENA

< Saudi Arabia: STC carves out 14,200 towers into TAWAL, pan-regional ambitions< Oman Tower Company established: 277 towers, BTS MOUs & SLB ambitions< Kuwait: IHS seeking to finalise deal to acquire 1,700 Zain towers< North Africa: AMT and Helios exploring new infraco licences and SLB< Egypt: Orange seeking ESCO partner< Pakistan: edotco (700) and Enfrashare (1,300) keen to expandAll are speaking at the TowerXchange Meetup MENA, Dubai 28-29 January

Source: TowerXchange

123456

Towerco activityTowerco activity plus major tower sale rumouredMNOs rumoured to be considering a major tower transactionConfirmed tower sale process underwayNo towerco activity or deal rumours

The Philippines are ready for take off

< DICT to release common tower policy < New MNO Dito Telecommunity will drive organic growth < PLDT and Globe agree deals with towercos< Rollout to start imminently (with challenges ahead!)

8,000-9,000 GlobeSmart-PLDT

Source: TowerXchange

Indonesia is hot again

< Indosat Ooredoo sale: 3,100

sites to Mitratel and Protelindo

< More MNO SLBs: 9,000+ towers

from Indosat and XL

< Organic growth: 4G, 5G and ex-

Java expansions

< Foreign investment entrance

and PE exists on the horizon

< Protelindo and STP lead

diversification

*after Indosat’s sale is completed

ProtelindoTower BersamaMitratelSTPIBS TowerCentratama MenaraBalitowerPersada Sokka TamaGihonPEKAPEOthers

Telkom + TelkomselXLIndosat Ooredoo

Source: TowerXchange

Towerco-owned

Operator-captive

15,485

19,233

15,213

6,451

17,500

4,000

5,500

5,059 1,641

565300

1,937

1,589

3,500

What is the future of Myanmar?

< Mytel still driving growth, mostly self deployed< MNOs slowing down after a busy 2018 - demand for new typologies< Towerco consolidation, potential SLB of Ooredoo towers < Operational challenges and opportunities for innovative players

Breakdown of ownership of the 16,000+ towers in Myanmar

Source: TowerXchange research

Independent towerco towers MNO captive towers

3000

3500

4000

2500

1500

2000

1000

500

0

3000

1800 2071

994

1300

300 400

4000

1200969

371 100 ~500IGT Apollo* edotco PAMEL*

600

EFT MNTI KPR MTGDC, NTD, MCDC, KBZ Towers, DLRE, CommBiz, ITMB, MAPCO and EAGER

OCK Ooredoo MytelMPT Telenor

* Apollo Towers and PAMEL owned by TPG

Malaysia: preparing for the 5G transition

< 5G preparation: Government’s 5G taskforce< MNOs: 4G deployment slowing down< Demand for new typologies and fiberisation< edotco & OCK continue international expansion

Source: TowerXchange

edotco

Stated -backed towercos

Sacofa

YTL

Naza Communications

Touch Matrix

KJS

OCK

Omnix

Inforient

Unaccounted for

DiGi

Maxis

Telekom Malaysia

Umobile

2,000 4,000 6,000 8,000 10,000 12,000

Operators

11,677

3,500

1,000

732

3,400

3,800

5,000

300

424

148

50

450

460

1,000

1,000

Vietnam: all eyes on Viettel

< Long rumoured carve-out could reshape the market

< Privatisation? Government to sell stakes in Mobifone and VPTG (Vinaphone)

< Consolidation opportunities as small players eye exits

Source: TowerXchange research

Operators Towercos

3000

3500

4000

2500

1500

2000

1000

500

0 Viettel VNPT Vietnamobile Gmobile Small independent

towercos

OCK Golden Towers

NiscoMobiFone

40,000

20,000 20,000

4,0002,000 1,350 2,000

350 300

New towerco frontiers: where can they go next?

Japan Nepal Cambodia Laos

Rakuten coming online Regulator NTA put out tender Dec17

Chinese MNOs drive competition & growth Opening to towercos

4 MNOs exploring towerco models

Requirement for 20% local ownership

Sihanoukville: online gaming boom

Southeast Asia Tower Company = CTC+local

partner

Government pushing for infra-sharing

Initial 200 BTS towers, rising to 2,000 over

5 years

CTC and others plan an entrance

edotco acquired 80% of Mekong Tower Company

5G driving IBS opportunities

NTA wants more towercos!

IBS and new build opportunities in

urban areas

4G to drive demand for 5,000 towers in 3 years

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Thank you – enjoy networking with your peers!