Telecom Passive Infrastructure Market - SAME

Frost & Sullivan, September 2009, Pages: 116

This Frost & Sullivan research service titled Telecom Passive Infrastructure Market – SAME provides a detailed analysis of the tower infrastructure market. This research service identifies the drivers and restraints for the market’s growth and demand across various verticals and horizontals. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: India, Bangladesh, Sri Lanka, Saudi Arabia, Egypt and the United Arab Emirates (UAE). The technologies covered in this research service are wireless infrastructure, mobile and broadband infrastructure, fixed and cellular services, broadband and carrier services and passive infrastructure services.

Market Overview

Expanding Geographic Presence of TSPs and Rising Subscriber Numbers Boost the SAME Telecom Passive Infrastructure Market

The passive tower infrastructure of telecom operators and infrastructure service providers is experiencing continuous growth, as the demand to support network infrastructure is driven by a growing subscriber base and expansion of geographical presence by telecom service providers (TSPs). South Asia, with its low telecom penetration, is expected to lead the growth in the South Asia and Middle East (SAME) region. Tower growth in Bangladesh, India and Egypt will be rapid due to the rising number of subscribers and need for greater geographic coverage. However, tower growth in the Sri Lankan, Saudi Arabian and UAE markets will be at a steady level for the next 2-3 years, as operators are planning to invest in infrastructure for technology upgrades and attempting to expand coverage in new geographic areas. "An increasing subscriber base and the expanding geographical footprint of operators in South Asian countries will drive the installation of towers in the region," says the analyst of this research. "The entry of new operators and technological upgrades from 2G/3G networks will boost the deployment of additional towers in mature markets such as Saudi Arabia and UAE."

The steady rise in subscriber base and adoption of newer technologies such as 3G/wireless-integrated multiple access (WIMAX) have put immense pressure on the existing infrastructure, thereby presenting an opportunity for telecom operators and infrastructure vendors. It has become necessary for TSPs to support the momentum by matching growth in tower infrastructure to host active and passive components. Millions of new subscribers are added every month in South Asia and with a comparatively large untapped geographical area, an increased network footprint is essential to maintain high growth rates. At the same time, TSPs in the Middle East are continuously expanding their geographical presence and upgrading their networks, which are requiring additional deployment of towers.

Infrastructure Sharing Key to Penetrate into Rural Areas for Service Providers

Dwindling average revenue per user (ARPU) and global economic slowdown have impelled operators to curtail their capital expenditure (CAPEX) and operating expenditure (OPEX), resulting in innovative and cost-effective models such as infrastructure sharing. Such models are likely to be a key trend in the SAME markets. In mature markets such as the UAE and Saudi Arabia, the saturation of the mobile services market has curtailed the network expansion spree, resulting in an overall decline in tower deployments. "A continuous rise in tower prices, coupled with falling ARPUs, is exerting further pressure on telecom companies to optimize their OPEX spending and rationalize capital deployments," explains the analyst. "This could hamper the growth of towers in the short term."

In the South Asian markets, service providers will continue to concentrate on acquiring customers as well as expanding their geographical presence. Infrastructure sharing is the key to penetrate into rural areas. In the Middle East markets, service providers will keep upgrading their network infrastructure to support new technologies, resulting in additional deployment of towers. While infrastructure sharing could be considered, it is yet to gain traction. "To overcome existing challenges, TSPs are optimizing costs by outsourcing and centralizing equipment along with infrastructure sharing to convert CAPEX into OPEX," concludes the analyst.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Geographic Region:

- India
- Bangladesh
- Sri Lanka
- Saudi Arabia
- Egypt
- UAE

Technologies

The following technologies are covered in this research:

- Wireless infrastructure
- Mobile and broadband infrastructure
- Fixed and cellular services
- Broadband and carrier services
- Passive infrastructure services

1. Executive Summary

2. Definitions and Scope of the Study

3. Geographical Analysis – Bangladesh

3.1 Market Engineering Measurements

3.2 Overview on Telecom Market (Subscribers and ARPU)

3.3 Market Drivers – Tower Growth

3.4 Market Restraints – Tower Growth

3.5 Profile of Tower Companies with GBS/RBS split

3.6 Tower and BTS Growth

3.7 Tenancy Ratios

3.8 Investments

3.9 Technological Trends

3.10 Competitive Landscape

4. India

5. Sri Lanka

6. Saudi Arabia

7. The United Arab Emirates

8. Egypt

- India
- Bangladesh
- Sri Lanka
- Saudi Arabia
- Egypt
- UAE

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