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In general mobile telecommunications tower business needs high initial investment and time due to right of way etc. Once it is settled then it is stable and results in predictable cash flows (fixed income for longer duration agreements), low working capital requirement (even that can be pass on to the tenant) and high profitability (with increase in tenancy ratio). The mobile telecommunications towers industry in India is a profitable business with long-term growth forecast. The major factors for mobile telecommunications tower industry growth in India are (i) large number of operators in a telecommunications circle (12 mobile network operators perceived during 2007 (Beniwal, 2007), (ii) growth of mobile telecommunication subscribers, (iii) competitive telecommunications tower market, (iv) large coverage area of the country, (v) falling average revenue per user (ARPU)/ Margins, (vi) high Minutes of Usage (MOU) & emergence of new technologies, (vii) spectrum scarcity, (viii) low teledensity which is increasing at a faster pace, (ix) emergence of 3G and WiMAX, (x) entry of new mobile network operators, (xi) push for better quality services by the regulator and subscribers, and (xii) investment in tower infrastructure is profitable (Rashmi, 2006). In addition, sharing of mobile telecommunication infrastructure will further boost the mobile telecommunications tower business. In days to come it may not be evaluated in terms of numbers telecommunications towers but in term of profitability per telecommunications tower. It will give birth to new business models and create an environment for more and more innovations. Even the passive telecommunications infrastructure components are now becoming a center of activity for telecommunications tower companies as well as for mobile network operators. In the market, there are various classifications of mobile telecommunications towers based on (i) cross section of telecommunications tower (Square Towers, Triangular Towers, and Delta Towers), (ii) type of material sections (Angular Towers, Hybrid Towers (legs tubes & bracings angles), and placement of telecommunications tower (Ground Based Towers (it can accommodate 3 to 6 tenants with present design), Roof Top Towers (it can accommodate maximum 2 tenants with present design). Other categories of mobile telecommunications towers are guyed masts and Cell on Wheels (COW) mobile telecommunications towers. Guyed masts are available at lower cost in comparison to self supported towers. Cell on Wheels (COW) mobile telecommunications towers were designed to respond to a need for rapid deployment telecommunications system and it provides quick, convenient communications capabilities for short or long term use without the hassle of installing permanent foundations, costly construction and regulatory restrictions. In India it takes about 45 to 60 days for erecting the telecommunications tower.
India is divided in to 23 telecommunication circles for the purpose of managing telecommunications services in the country. These 23 telecommunications circles are further categorized as metros, type A, B and C based on population and teledensity. The figures of mobile subscribers and forecasted figures of mobile subscribers given in Table A.1, Table A.2, Table A.3 and Table A.4 are suggestive of high growth of telecom towers in India. The comparative growth of mobile and fixed line subscribers given in Table A.2 suggests that mobile telecommunication will be the communication system in future in India. The factors responsible for that are life time validity schemes, low cost handsets, low cost services, low long distance (STD) charges, low roaming charges and flood of value added services (Prashant, 2007a). He also mentioned that winning strategy will in reducing the CAPEX and OPEX to the mobile network operators which is possible with optimal and efficient use of mobile telecommunications towers (Prashant, 2007).