Fairval

Notes on Indian equities, sectors and economy

Telecom Towers – another big infra opportunity

Posted by fairval on February 16, 2007

The telecom tower business seems set to offer 3rd party players a strong growth opportunity. That is what players like GTL Infra have been saying and betting upon. American Tower, the US company in this business, is also eyeing the Indian market, perhaps driven by the same thought.
Business will come from existing mobile players, who may want to outsource part of futre tower capacity, or where they may want to share infra with other telecom players. This is clear merit in the sharing argument, particularly in low traffic areas. Mobile market is increasingly moving to semi urban and rural areas. For example, the Vodafone chief said he would target rural India to get to a 100mn subscriber base by 2010 or so in India.
The govt is spending Rs 4000 crore of its own to promote infra. ET reports the bidding process has 22 active players. (see story)

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