welcome to the 3rd annual towerxchange meetup africa! · welcome to the 3rd annual towerxchange...

Welcome to the 3rd annual TowerXchange Meetup Africa!

Wi-Fi network: TowerXchangeWi-Fi code: meet2015

Download this presentation: www.towerxchange.com/africaopening

www.towerxchange.com

The African and Middle Eastern market in the context of a global tower industry which owns

971,696 towers worldwide

Kieron Osmotherly, Founder and CEO, TowerXchange

Tweet: #TowerXchange

Community: http://www.linkedin.com/groups/TowerXchange-4536974

Research: www.towerxchange.com


What is the TowerXchange community?

< 15,000 telecom tower industry leaders including…

< 1,491 decision makers at 149 towercos and infrastructure sharing firms

< 2,502 CXOs, infrastructure, network planning, M&A and procurement

decision makers at MNOs

< 682 individuals at 316 different investors

< 796 investment bankers and advisors

< A who’s who of equipment and service providers

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


JuneMiami

October 20-21 Johannesburg

November 24-25Singapore

AprilLondon

Meetup Asia 2015 Meetup Europe 2016Meetup Americas 2016Meetup Africa 2016

< Faciliting the transfer of assets from operators to towercos, and

accelerating to market investible infrastructure assets

< Sharing best practices for the effective deployment of network capex

and reduction of opex

< Examining the impact on the supply chain and evangelising

innovations in managed services, remote monitoring, site

management, hybrid and renewable energy

TowerXchange drivers

Why are towercos and infracos so important?

Towercos and infracos own or are in the process of acquiring/building…

< 971,696 towers

< Assets worth ~$100bn in replacement value alone

< Towerco valuations typically 12-18x, 3-4x that of MNOs

< Towercos own about one in three of the world’s telecom towers

< Soon to be two in three when CTC scales

US$billions of capital at work

Passive infrastructure procurement

< Towercos are new king buyers of

passive infra

< Some provide tower+power, some

steel+grass

< MSPs often highly influential

< Tier 1 OEMs being disintermediated

< ESCOs pushing up the value chain

< Energy by kWh contracts coming

< Vendor finance differentiator

Fibre, microwave, satellite backhaul Microcells, small cells & DAS Active equipment

Tier 1 OEMs

Mobile Network Operators

Group level strategistsC-suite & network planners at local OpCos

Outsourceto

Strategic consultancyDue diligenceDemand modelingAsset register audits

Independent TowercosSell co-locationsGenerate amendment revenueBuild-to-suitAchieve SLAs

Optimise supplier contracts

Transfer assets to

Construction servicesTurnkey infrastructure rollout Tower design & manufactureImport, customs & delivery Site acq, leasing & permitting Installation of towers Tower strengtheningDecommissioning

Dynamic assets

Energy equipmentDiesel gensetSolarWindFuel cell

Batteries

InvertersLine conditioningPIUs

Air conditioning Lightning protectionControllerVoltage regulatorAlternator

Managed service providers

ESCOs

Static assetsTowers & mastsSheltersBracketsEnclosuresLightingFencing

0&M servicesMaintenance

Spare partsSecurityRefueling

Energy as a service

Monitoring & managementRMSIntelligence/analysisSite managementJob ticketingAsset lifecycle platform

Access control

Subcontract

Opex models

Distributed generationCommunity power

Subcontract or in-house

Outsourceto

Tower Industry Value Chain

Investment management advisors

TowerXchange ranks 149 towercos worldwide by tower count

Rank RankTowerco TowercoCount CountCountries Countries

* China Tower Company count includes contracted BTS, but excludes the 1mn+ towers to be integrated from China’s three MNOs ** Bharti Infratel also owns 42% of Indus Towers, making their portfolio 48,911 towers larger, excluded here to avoid double counting *** Deutsche Funkturm: our sources suggest this portfolio consists of ~8,500 towers and ~18,500 rooftops

USA

India

India

UK

1

2

3

4

5

6

7

8

9

10

11

12

13

14

China Tower Company*

Indus Towers

American Tower

Reliance Infratel

Viom Networks

Crown Castle

Bharti Infratel**

GTL Infrastructure

Deutsche Funkturm***

SBA Communications

IHS Towers

CTIL

MBNL

Cellnex

120,000

116,454

99,501

52,000

42,200

39,667

37,486

29,432

27,000

25,777

23,100

18,000

18,000

15,140

China

India

Nigeria, Cameroon, Ivory Coast, Rwanda, Zambia

USA, Brazil, Chile, Colombia, Peru, Mexico, Costa Rica, Germany, India, Ghana, South Africa, Uganda, Nigeria

India

USA, Canada, Brazil, Panama, Costa Rica, Nicaragua, Guatemala, El Salvador, Ecuador

India

Germany

UK

Spain, Portugal, Italy

France, Germany, Poland, Spain, Estonia

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Malaysia, Sri Lanka, Bangladesh, Cambodia, Pakistan

Indonesia, Netherlands

Indonesia

Thailand

Italy

UK

India

Brazil

Indonesia

USA

Tanzania, DRC, Congo B, Ghana

Turkey, Ukraine

Indonesia

Ghana, Kenya, Uganda, South Africa, Niger, Burkina Faso, Malawi, Egypt

Mexico

edotco

DIF (formerly TRUEGIF)

Protelindo

Inwit

Tower Bersama

TDF

Telesites

Arqiva

Tower Vision

Global Tower

STP

Eaton Towers

Grupo TorreSur

Helios Towers Africa

Mitratel

AT&T Towers

14,000

12,138

11,675

11,519

11,154

11,000

10,800

10,550

8,400

7,870

7,770

7,070

6,300

5,606

5,500

5,059

Undisclosed counts

3GIS, SwedenAntenna Hungaria, HungaryAtlas Tower, USA, South AfricaAWAL Telecom, PakistanAzerconnect, AzerbaijanCatalina Inc, Costa RicaCommunication Towers Nigeria, NigeriaDigita, FinlandEco-Friendly Towers*, MyanmarEuroTower, Pan-European remitInfratel, South AfricaITAS TIM, FranceMosaic, IrelandMyanmar Infrastructure Group**, MyanmarNetWorkS!, Poland

Net4Mobility, SwedenSecured Towers, NigeriaShared Networks Tanzania, TanzaniaSquare1 Infrastructure, Chile, Nigeria, South Africa, MyanmarStaghorn Infrastructure, USASummit LatAm, CALASUNAB, SwedenTarpon Towers, USATASC Towers, Jordan, UAE, LebanonTowercast, FranceTowerCo, USAUruguay Torres, UruguayVICTUS Networks, Greece


Towercom

ESB Telecos

Highline do Brasil

Emitel

Innovattel (Torresec)

D’harmoni

KJS

Subcarrier Communications

Common Tower

Skyway Towers

IIMT

Torres Andinas

Branch Communication

Balitowers

Infra Quest

Link Development

Yikedbina

Grain Management

Pegasus Tower

Perak Integrated Networks

HIGHPOINT (obelisk)

Intelli Site Solutions

Hibernian / Brittannia Towers

Asia Space

Tocsa

Collite

Hi3G

Communication Enhancement

Brazil

Mexico

Colombia, Peru

Ireland

Ireland

Indonesia

Malaysia

Malaysia

Malaysia

Costa Rica

Malaysia

Ireland

UK, Ireland

Ireland

Sweden

Mexico

Malaysia

Malaysia

Malaysia

Poland

USA

USA

USA

USA

USA

USA

Peru, Ecuador, Colombia, Puerto Rico, Argentina

Russia

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

Nigeria

Denmark

Brazil

South Africa

Brazil

Malaysia

Malaysia

Brazil

Egypt

Netherlands

USA

120

118

100

95

75

51

45

40

40

40

38

33

10

400

400

400

377

350

346

309

300

260

250

250

240

226

208

201

200

200

188

173

150

150

142

140

137

130

130

125

124

South Africa

China109

110

111

112

113

114

115

116

117

118

119

120

121

Q Towers

Desabina

Hotspot Network

Melaka ICT Holdings

Falck

Torre Online

Eagle Towers

Skysites

Telecom Torres

HOI-MEA

Stout & Company

Alticom

Pro High Site Communication

* Eco-Friendly Towers contracted to build 700 towers for Telenor in Myanmar** Myanmar Infrastructure Group ontracted to build 503 towers for Ooredoo in Myanmar


Brazil, Dominican Republic, Costa Rica, Panama, USA, Colombia

Towershare

Ascend Telecom

US Cellular Towers

EI Towers

TT-Network

Digital Bridge

IBS Tower

T-Mobile Towers

FPS

Miteno

Wireless Infrastructure Group

SEATH (VinaCapital / VNI)

ASEAN Towers

(IGT + Golden Towers)*

CCA (now owned by MIRA-

headed consortium)

Phoenix Tower International

Russian Towers

Frontier Tower Solutions

Varsity Wireless

Mexico Tower Partners

Pan Asia Majestic Eagle

Digicel MTC

HTN Towers

Cell Site Solutions

InSite Wireless Group

Message Centre Management/

Torrecom

USA

Pakistan

USA

USA

UK

India

France

China

Indonesia

Myanmar, Vietnam

Australia

Italy

Denmark

Vietnam

Russia

Afghanistan

USA

Mexico

Myanmar

Myanmar

Nigeria

Brazil

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

in Myanmar

USA

USA

UK, Netherlands

Czech Republic

Brazil, Mexico, Colombia and Puerto Rico

Myanmar

Malaysia

Brazil

Nigeria

1,080

1,040

921

901

894

860

800

765

753

702

700

700

690

684

636

635

620

600

600

580

565

460

457

450

435

5,000

4,500

4,281

2,700

2,500

2,300

2,185

2,157

2,051

2,000

2,000

1,930

1,822

1,772

1,608

1,500

1,500

1,288

1,278

1,250

1,220

1,203

1,203

1,200

1,131 USA, Mexico, Guatemala, Nicaragua

USA

Nigeria

USA

USA

Australia

Indonesia

Spain

Brazil, Mexico, Colombia

Malaysia

USA

Indonesia

USA

Nicaragua, Mexico, Colombia and Peru

Netherlands

Madagascar

Chile, Peru

Colombia, Costa Rica, Panama, Nicaragua, Guatemala, El Salvador, Jamaica and Honduras

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

Torres Unidas

Apollo Towers**

Central States Tower

QMC Telecom

Tower Ventures

Shere Group

České Radiokomunikace

Sacofa

Brazil Tower Company

SWAP Telecoms and

Technologies

BCTEK

TowerCo of Madagascar

Continental Towers

Open Tower Company

Diamond Communications

Industrial Communications

Broadcast Australia

Komet Infra Nusantara

NMS

Axion

Centennial

Touch Matrix

CTI Towers

Retower

Sprint Sites USA

TowerXchange ranks 149 towercos worldwide by tower count (cont.)


* China Tower Company count includes contracted BTS, but excludes the 1mn+ towers to be integrated from China’s three MNOs ** Bharti Infratel also owns 42% of Indus Towers, making their portfolio 48,911 towers larger, excluded here to avoid double counting *** Deutsche Funkturm: our sources suggest this portfolio consists of ~8,500 towers and ~18,500 rooftops

USA

India

India

UK

1

2

3

4

5

6

7

8

9

10

11

12

13

14

China Tower Company*

Indus Towers

American Tower

Reliance Infratel

Viom Networks

Crown Castle

Bharti Infratel**

GTL Infrastructure

Deutsche Funkturm***

SBA Communications

IHS Towers

CTIL

MBNL

Cellnex

120,000

116,454

99,501

52,000

42,200

39,667

37,486

29,432

27,000

25,777

23,100

18,000

18,000

15,140

China

India

Nigeria, Cameroon, Ivory Coast, Rwanda, Zambia

USA, Brazil, Chile, Colombia, Peru, Mexico, Costa Rica, Germany, India, Ghana, South Africa, Uganda, Nigeria

India

USA, Canada, Brazil, Panama, Costa Rica, Nicaragua, Guatemala, El Salvador, Ecuador

India

Germany

UK

Spain, Portugal, Italy

France, Germany, Poland, Spain, Estonia

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Malaysia, Sri Lanka, Bangladesh, Cambodia, Pakistan

Indonesia, Netherlands

Indonesia

Thailand

Italy

UK

India

Brazil

Indonesia

USA

Tanzania, DRC, Congo B, Ghana

Turkey, Ukraine

Indonesia

Ghana, Kenya, Uganda, South Africa, Niger, Burkina Faso, Malawi, Egypt

Mexico

edotco

DIF (formerly TRUEGIF)

Protelindo

Inwit

Tower Bersama

TDF

Telesites

Arqiva

Tower Vision

Global Tower

STP

Eaton Towers

Grupo TorreSur


Mitratel

AT&T Towers

14,000

12,138

11,675

11,519

11,154

11,000

10,800

10,550

8,400

7,870

7,770

7,070

6,300

5,606

5,500

5,059

Undisclosed counts

3GIS, SwedenAntenna Hungaria, HungaryAtlas Tower, USA, South AfricaAWAL Telecom, PakistanAzerconnect, AzerbaijanCatalina Inc, Costa RicaCommunication Towers Nigeria, NigeriaDigita, FinlandEco-Friendly Towers*, MyanmarEuroTower, Pan-European remitInfratel, South AfricaITAS TIM, FranceMosaic, IrelandMyanmar Infrastructure Group**, MyanmarNetWorkS!, Poland

Net4Mobility, SwedenSecured Towers, NigeriaShared Networks Tanzania, TanzaniaSquare1 Infrastructure, Chile, Nigeria, South Africa, MyanmarStaghorn Infrastructure, USASummit LatAm, CALASUNAB, SwedenTarpon Towers, USATASC Towers, Jordan, UAE, LebanonTowercast, FranceTowerCo, USAUruguay Torres, UruguayVICTUS Networks, Greece


Towercom

ESB Telecos

Highline do Brasil

Emitel

Innovattel (Torresec)

D’harmoni

KJS

Subcarrier Communications

Common Tower

Skyway Towers

IIMT

Torres Andinas

Branch Communication

Balitowers

Infra Quest

Link Development

Yikedbina

Grain Management

Pegasus Tower

Perak Integrated Networks

HIGHPOINT (obelisk)

Intelli Site Solutions

Hibernian / Brittannia Towers

Asia Space

Tocsa

Collite

Hi3G

Communication Enhancement

Brazil

Mexico

Colombia, Peru

Ireland

Ireland

Indonesia

Malaysia

Malaysia

Malaysia

Costa Rica

Malaysia

Ireland

UK, Ireland

Ireland

Sweden

Mexico

Malaysia

Malaysia

Malaysia

Poland

USA

USA

USA

USA

USA

USA

Peru, Ecuador, Colombia, Puerto Rico, Argentina

Russia

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

Nigeria

Denmark

Brazil

South Africa

Brazil

Malaysia

Malaysia

Brazil

Egypt

Netherlands

USA

120

118

100

95

75

51

45

40

40

40

38

33

10

400

400

400

377

350

346

309

300

260

250

250

240

226

208

201

200

200

188

173

150

150

142

140

137

130

130

125

124

South Africa

China109

110

111

112

113

114

115

116

117

118

119

120

121

Q Towers

Desabina

Hotspot Network

Melaka ICT Holdings

Falck

Torre Online

Eagle Towers

Skysites

Telecom Torres

HOI-MEA

Stout & Company

Alticom

Pro High Site Communication

* Eco-Friendly Towers contracted to build 700 towers for Telenor in Myanmar** Myanmar Infrastructure Group ontracted to build 503 towers for Ooredoo in Myanmar


Brazil, Dominican Republic, Costa Rica, Panama, USA, Colombia

Towershare

Ascend Telecom

US Cellular Towers

EI Towers

TT-Network

Digital Bridge

IBS Tower

T-Mobile Towers

FPS

Miteno

Wireless Infrastructure Group

SEATH (VinaCapital / VNI)

ASEAN Towers

(IGT + Golden Towers)*

CCA (now owned by MIRA-

headed consortium)

Phoenix Tower International

Russian Towers

Frontier Tower Solutions

Varsity Wireless

Mexico Tower Partners

Pan Asia Majestic Eagle

Digicel MTC

HTN Towers

Cell Site Solutions

InSite Wireless Group

Message Centre Management/

Torrecom

USA

Pakistan

USA

USA

UK

India

France

China

Indonesia

Myanmar, Vietnam

Australia

Italy

Denmark

Vietnam

Russia

Afghanistan

USA

Mexico

Myanmar

Myanmar

Nigeria

Brazil

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

in Myanmar

USA

USA

UK, Netherlands

Czech Republic

Brazil, Mexico, Colombia and Puerto Rico

Myanmar

Malaysia

Brazil

Nigeria

1,080

1,040

921

901

894

860

800

765

753

702

700

700

690

684

636

635

620

600

600

580

565

460

457

450

435

5,000

4,500

4,281

2,700

2,500

2,300

2,185

2,157

2,051

2,000

2,000

1,930

1,822

1,772

1,608

1,500

1,500

1,288

1,278

1,250

1,220

1,203

1,203

1,200

1,131 USA, Mexico, Guatemala, Nicaragua

USA

Nigeria

USA

USA

Australia

Indonesia

Spain

Brazil, Mexico, Colombia

Malaysia

USA

Indonesia

USA

Nicaragua, Mexico, Colombia and Peru

Netherlands

Madagascar

Chile, Peru

Colombia, Costa Rica, Panama, Nicaragua, Guatemala, El Salvador, Jamaica and Honduras

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

Torres Unidas

Apollo Towers**

Central States Tower

QMC Telecom

Tower Ventures

Shere Group

České Radiokomunikace

Sacofa

Brazil Tower Company

SWAP Telecoms and

Technologies

BCTEK


Continental Towers

Open Tower Company

Diamond Communications

Industrial Communications

Broadcast Australia

Komet Infra Nusantara

NMS

Axion

Centennial

Touch Matrix

CTI Towers

Retower

Sprint Sites USA

Towerco and infraco market penetration, selected markets

100

UK

Tanzania

Nigeria

Brazil USA

India

Mya

nmar

Indones

ia

Malay

sia

Mex

ico Italy

South

Afri

caChin

a

Russia

Pakistan

Egypt

80

60

40

20

88%

65%

79%73% 70% 70% 69%

55%

33%

48%

13% 11%14% 9%

91%

85%

57%65%

6%

100%

Current penetration

Future penetration

Investors TowerXchange understands to have active investments in, or an appetite to invest in, telecom towers

1848 Capital PartnersAccelero CapitalAIIMAlcazar CapitalAlindaAmzak Capital ManagementAntin Infrastructure PartnersAPAX PartnersArcus Infrastructure PartnersAshmoreBarclaysBerkshire PartnersBlackstoneBrookfieldCPPCapital InternationalCarlyle GroupCartesian CapitalCEE Equity PartnersCentennial VenturesConvergence PartnersCyan CapitalDPIECP

Farallon CapitalFMOGavea InvestimentosGoldman SachsGTCRHelios Investment PartnersHighstar Capital PartnersHSBCIFCInfraVia Capital PartnersINGInvestecKKRM1 GroupMacquarieMadison Dearborn PartnersMubadalaMyanmar InvestmentsNedbankNew Silk RouteNoonday Asset ManagementOCBCOPICOTPP

Peppertree CapitalProvidence EquityQuadrangle GroupRIT CapitalShanduka GroupSilverlakeSingapore WindsorSoros Fund ManagementSREI Infrastructure FinanceStandard BankStandard CharteredSteelRiverSumitomoTael PartnersTailwind CapitalTemasekTilman HoldingsTPG CapitalTrue North Venture PartnersUBSUFGUnited Overseas BankWendelWood Creek Capital Management

Comparing towerco penetration worldwideSee page 13 of your handout

10%

27%76%

44% 29% 82%

* China will rise to 100% penetration when legacy assets are injected into CTC* Europe includes JV infracos as towercos. Independent towercos own 9%

China 120,000 / 1,200,000 towers*

Europe 158,911 / 600,000 towers*

India 304,144 / 400,000 towers

CALA 69,975 / 160,000 towers

SSA 47,994 / 165,000 towers

1.4%

MENA 2,040 / 139,800

USA 114,139 / 140,000 towers

Sources: TowerXchange, RBC, Delta Partners, Mott MacDonald

Average cost per tower comparisons

Region

CALA

Indonesia

Africa

Europe

India

Timeframe studied

2011-15

2008-15

2010-15

2012-15

2009-15

Total sold*

41,413

13,267

39,908

17,072

42,388

Capital deployed US$

$8.3bn

$1.7bn

$4.4bn

$2.1bn

$4.8bn

Average cost per tower

$200,130

$145,369

$130,744

$123,560

$114,301

*Total sold includes transactions where the quantity was disclosed but the deal value was not disclosed to TowerXchange, capital deployed includes only known deal values, the tower counts from which are excluded from the formula to calculate average cost per tower

Source: TowerXchange

Current state of the African tower industrySee page 5 of your handout


IHS Africa

5000 10000 15000 20000 25000

American Tower

Eaton Towers

HTN Towers + SWAP


1900

1400 1600

700

170

400

500

500

500

Helios Towers Africa 843 787 3582 394

2067

2000

1905

1918 1380

2230 47

734

164816541

4700

South Africa

Nigeria

Ghana

Burkina Faso

DRC

Cote d’Ivoire

Cameroon

Niger

Rwanda

Zambia

Congo B

Egypt

Madagascar

Unknown Country

Uganda

Tanzania

Malawi

US$5bn invested in the transfer of 49,600 towersSee page 7 of your handout

2015

2014

2014

2014

2014

2014

2014

2014

2013

2013

2013

2012

2012

2012

2012

2011

2010

2010

2010

2010

2010

2010

2010

2010

2010

MobiNil

Airtel

Airtel

Airtel

MTN

Etisalat

Airtel

MTN

Vodacom

Telkom Kenya

Orange

MTN

MTN

Warid

Orange

MTN

Millicom/Tigo

Millicom/Tigo

MTN

Cell C

Starcomms

Vodafone

Visafone

Multilinks

Millicom/Tigo

Eaton

IHS

American Tower

Eaton

IHS

IHS

HTA

IHS

HTA

Eaton

IHS

IHS

IHS

Eaton

Eaton

American Tower

HTA

HTA

American Tower

American Tower

SWAP

Eaton

IHS

HTN

HTA

Totals / average

2,000

1,113

4,800

3,500

9,151

2,136

394

1,269

1,149

1,000

2,000

931

827

400

300

1,000

1,020

729

1,876

1,400

407

750

800

400

750

40002

$131,150,000

$181,000,000

$1,050,000,000

$612,500,000

$882,000,000

$485,000,000

$75,000,000

$141,000,000

$143,000,000

$89,000,000

$80,000,000

$45,000,000

$21,850,000

$200,000,000

$81,000,000

$67,000,000

$54,000,000

$4,378,500,000

$65,575

$162,624

$218,750

$175,000

$196,700

$227,060

$87,616

$151,450

$172,914

$174,510

$130,719

$102,881

$228,375

$142,857

$199,017

$83,750

$120,000

$130,744

SLB

SLB

SLB

SLB

Joint venture (IHS 49%, MTN 51%)

SLB

SLB

SLB

SLB with direct investment in HTT*****

MLL (Contract since cancelled)

MLL

SLB

SLB

SLB

SLB

Joint venture (AMT 51%, MTN 49%)

Joint venture (HTA 60%, Milicom 40%)


Joint venture (AMT 51%, MTN 49%)

SLB with right to acquire 1800 more

SLB

MLL

SLB

MLL


Egypt

Rwanda & Zambia

Nigeria

Ghana, Niger, Burkina Faso, Kenya, Uganda & Malawi (tbc)

Nigeria

Nigeria

Congo B

Rwanda & Zambia

Tanzania

Kenya ***

Cameroon & Cote d’Ivoire

Cote d’Ivoire

Cameroon

Uganda

Uganda

Uganda

Tanzania **

DRC

Ghana

South Africa *

Nigeria

Ghana

Nigeria

Nigeria

Ghana

* Cell C deal included 1,400 existing towers plus the option to acquire up to 1,800 more to be constructed. Cost of original 1,400 towers only included here ** Milli-com/Tigo’s stake in Helios Towers Tanzania reduced to 24.5% after Helios acquired towers from Vodacom Tanzania in 2013 *** Telkom Kenya-Eaton deal subse-quently cancelled *****Vodacom sold 100% of equity in towers but subscribed to acquire a 24.5% interest in HTT

Year Country Seller Buyer Tower count

Deal valueUS$

Cost per tower US$ Deal structure


Towercos are a natural monopolySee page 8 of your handout

From land grab to “an outbreak of rationality”


CameroonCote d’IvoireRwandaZambia

TanzaniaCongo BrazzavilleDRC Kenya

NigerBurkina FasoMalawi

South AfricaUganda

Ghana

Nigeria

IHS

American Tower


Eaton Towers

HTN & SWAP

Egypt

Shopping list for MEA towercosNew markets, in-market consolidation

38,000+ towers in new markets < Algeria< Senegal< Mali< Guinea B & C< Mozambique< South Africa< KSA< Kuwait

Airtel and Orange deals trigger consolidation of up to 20,000 towers (some will be stranded) < Burkina Faso< Chad< Congo B< DRC< Egypt< Gabon< Mali< Niger< Rwanda< Senegal

< 30,941 towers< 79% towerco penetration< IHS 53%, ATC 15%, HTN+SWAP 6% others 3%< Full power services widely provided< 3-4,000 new towers pa< Globacom and NATCOM towers operator-captive

Nigeria market focusSee page 13 of your handout

Estimated tower ownership in Nigeria

IHS own and BTS towersIHS towers acquired from MTNIHS towers acquired from EtisalatAmerican Tower assets acquired from AirtelHTN Towers + SWAPHotspot Network TowersBCTekOther small Nigerian towerco towersGlobacomNATCOM

5,0006,000

550

8,850

2,691

4,700

700250

200

1,905


< 22,288 towers< 10% towerco penetration< Stop-start Telkom process< $2bn+ MTN assets coming to market?< Done deal with IHS? Half a dozen other credible counterparties< Power pass through business model< Tenancy ratios close to two< Widespread bi-lateral swaps

South Africa market focus

Estimated macro tower count in South Africa

MTN

Telkom

Vodacom

*Cell C

American Tower

Eaton

Other middle market and small towercos

9000

3500

7000

1918

170 200

500

*In their Q4 2014 results Cell C announced that they had 4,524 sites on air. It is not clear which of those sites are owned towers, which were sold and leased back from American Tower, built to suit by American Tower or other suppliers, and which are co-locations on towerco or other operators’ towers.


Mozambique market focus

< Viettel upsets status quo, builds strong rural base (sells?)< Vodacom invests in network< MCel outsources, may sell towers< 27mn pop, 4,800+ tower market< Gas discoveries fuel GDP growth< Questionable culture of sharing< Further reading: TowerXchange 12, pp158-166

Source: BMI, operators

Viettel pulls aheadMozambique mobile market shares (%), 2011-2014

Senegal market focus


Sonatel Millicom Expresso

17001100

400

< 13.5mn pop, 3,000+ tower market< All MNOs willing to share?< Own or operate?< Sonatel multi-country footprint attractive< Further reading: TowerXchange 13, pp96-106

Estimated number of towers in MENASee page 11 of your handout

Source: Delta Partners data, TowerXchange presentation

Saudi Arabia 30,600

Egypt 19,000

Kuwait5,100

Yemen3,900

Libya5,000

Oman3,200

Lebanon2,000

Bahrain1,700

Qatar1,100

Jordan5,900

Algeria 17,500

Morocco 17,000

Iraq 12,300

UAE 8,500

UAE 8,500

Tunisia 7,000

KSA and Kuwait market focus

Estimated tower count, KSA Mobile Network Operator subscriptions - Kuwait market shares in 2009 and 2014

Zain Viva Ooredoo

2009

50

40

30

20

10

2014% m

arke

t sh

are

(su

bsc

rib

er n

um

ber

s)

STC

Mobily

Zain

16,4009,200

5,000

< On the block: ~9,200 Mobily towers in KSA< On the block: ~5,000 Zain towers in KSA and ~1,600 Zain towers in Kuwait< A new breed of towerco for MENA< Mature networks, 3 MNOs: finite growth< 4G since 2011 in KSA, 2013 in Kuwait< Substantial government stakes< Further reading: TowerXchange 14, pp140-150; 13, P23-27

The drive to achieve operational excellence

< RMS and business intelligence critical< Appetite for ESCOs varies but increasing< Local MSPs play a critical role – tightening partnerships< Uptime always essential< Tenant satisfaction beyond the SLA

Estimated breakdown of towers owned by Indian towercos

State owned MNOs Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam retain 70,000 towers

Viom Networks

GTL Infrastructure

American Tower

Tower Vision

Ascend

Indus Towers

Bharti Infratel

Reliance Infratel

20,000 40,000 60,000 80,000 100,000 120,000

116,454

52,000

42,000

29,432

13,883

8,400

4,500

37,486 48,911 - 42% equity stake in Indus Towers

Indian tenancy ratios approaching and exceeding 2.0

1.0

1.2

Viom Networks

2.42.3

2.11.9

1.61.5

1.6 1.6

Indus Towers

Bharti Infratel

American Tower

Reliance Infratel

GTL Infrastructure

TowerVision

Ascend

1.4

1.6

1.8

2.0

2.2

2.4

Source: Quarterly and Annual Reports, TowerXchange research

CALA Tower Count

*American Tower

SBA Communications

Grupo TorreSur

5,000 10,000 15,000 20,000 25,000 30,000 35,000

18,851

7,000

6,300

*Telesites 10,800

3,677

527 196520 303541 130

Dominican Republic

Ecuador

Unknown

8,717

1,165 579

464

Estimated number of towers owned or managed by towercos in CALA

1000

800

1200

600

400

200

Continen

tal*

Centen

nial

Torres

Unid

as

Mex

ico Tower

Partner

sNM

S**

600

1278

600

175250

400 350

51105 40 40

155

131

480

65

690 400

100

901

QMC*

1203

CSS

Torrec

om

753

Brazil

Tower

Company

IIMT

Innovatte

l

(Torr

esec

)***

200

40

Torres

Andin

as

Highlin

e

do Bra

sil

Torre

s Onlin

e

60

Torre

s de P

anam

a

142

Phoenix

Tower

556

189

125

15

Inter

national

107

Intel

li Site

Solutio

ns

TOCSA

Skysit

es

Teleco

m Torr

es

34%

20%7%

31%

4%

4%

Crown Castle

American Tower

SBA Communications

Verizon

AT&T

Miscellaneous

Year Seller BuyerCountry Deal structureCost per tower US$Deal value US$Tower count

Portfolio acquisition

Company acquisition

Company acquisition

Company acquisition

SLB

Subsidiary acquisition

Company acquisition

SLB

SLB

Company acquisition

SLB

SLB

SLB

SLB

Company acquisition

SLB

SLB

SLB

SLB

Partial acquisition

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

Partial acquisition

$185,185

$211,231

$321146

$179,897

$546,610

$321,375

$148,029

$238,896

$162,328

$305,732

$118,788

$138,665

$193,548

$283,126

$222,500

$213,576

$171,875

$131,799

$150,000

$172,043

$207,851

$208,904

$144,000

$85,607

$151,694

$878,378

$200,349

$1,200,000,000

$978,000,000

$527,000,000

$349,000,000

$129,000,000

$645,000,000

$413,000,000

$398,000,000

$343,000,000

$4,800,000,000

$251,000,000

$293,000,000

$18,000,000

$250,000,000

$178,000,000

$258,000,000

$33,000,000

$252,000,000

$225,000,000

$96,000,000

$323,000,000

$122,000,000

$18,000,000

$182,000,000

$206,000,000

$585,000,000

$8,272,000,000

130

190

529

529

6480

60

4630

1641

1940

236

2007

2790

1666

2113

15700

2113

2113

93

883

100

400

800

1208

192

1912

1500

558

1554

584

125

2126

1358

666

58267

SBA Communications

Phoenix Tower

Phoenix Tower

Phoenix Tower

American Tower

Phoenix Tower

American Tower

SBA Communications

American Tower

American Tower

SBA Communications

American Tower

American Tower

SBA Communications

American Tower

BR Towers

Grupo TorreSur

American Tower

American Tower

BR Towers

Torres Unidas

SBA Communications

Grupo TorreSur

American Tower

BR Towers

American Tower

American Tower

American Tower

American Tower

American Tower

American Tower

Grupo TorreSur

American Tower

Totals / average

Torresec

Amzak/Teletower

T4U

T4U

TIM

American Tower

BR Towers

Oi

Nextel

Z-Sites

Oi

Nextel

Nextel

Oi

GTP

Oi

Oi

Telefonica

Axtel

Sitesharing

Telefonica

Telefonica

Oi

Telefonica

Telefonica

Telefonica

Telefonica

Telefonica

Telefonica

Telefonica

Millicom/Tigo

Telefonica

Sitesharing

Ecuador

Dominican Republic

Brazil

Brazil

Brazil

Panama

Brazil

Brazil

Brazil

Brazil

Brazil

Brazil

Mexico

Brazil

USA, Panama & Costa Rica

Brazil

Brazil

Brazil

Mexico

Brazil

Chile

Brazil

Brazil

Brazil

Brazil

Brazil

Chile

Mexico

Mexico

Colombia

Colombia

Brazil

Brazil

2015

2015

2015

2015

2014

2014

2014

2014

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2012

2012

2012

2012

2012

2012

2012

2011

2011

2011

2011

2011

2011

*American Tower

SBA Communications

Grupo TorreSur

5,000 10,000 15,000 20,000 25,000 30,000 35,000

18,851

7,000

6,300

*Telesites 10,800

3,677

527 196520 303541 130

Dominican Republic

Ecuador

Unknown

8,717

1,165 579

464


1000

800

1200

600

400

200

Continen

tal*

Centen

nial

Torres

Unid

as

Mex

ico Tower

Partner

sNM

S**

600

1278

600

175250

400 350

51105 40 40

155

131

480

65

690 400

100

901

QMC*

1203

CSS

Torrec

om

753

Brazil

Tower

Company

IIMT

Innovatte

l

(Torr

esec

)***

200

40

Torres

Andin

as

Highlin

e

do Bra

sil

Torre

s Onlin

e

60

Torre

s de P

anam

a

142

Phoenix

Tower

556

189

125

15

Inter

national

107

Intel

li Site

Solutio

ns

TOCSA

Skysit

es

Teleco

m Torr

es

34%

20%7%

31%

4%

4%

Crown Castle

American Tower

SBA Communications

Verizon

AT&T

Miscellaneous



Company acquisition

Company acquisition

Company acquisition

SLB


Company acquisition

SLB

SLB

Company acquisition

SLB

SLB

SLB

SLB

Company acquisition

SLB

SLB

SLB

SLB

Partial acquisition

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

Partial acquisition

$185,185

$211,231

$321146

$179,897

$546,610

$321,375

$148,029

$238,896

$162,328

$305,732

$118,788

$138,665

$193,548

$283,126

$222,500

$213,576

$171,875

$131,799

$150,000

$172,043

$207,851

$208,904

$144,000

$85,607

$151,694

$878,378

$200,349

$1,200,000,000

$978,000,000

$527,000,000

$349,000,000

$129,000,000

$645,000,000

$413,000,000

$398,000,000

$343,000,000

$4,800,000,000

$251,000,000

$293,000,000

$18,000,000

$250,000,000

$178,000,000

$258,000,000

$33,000,000

$252,000,000

$225,000,000

$96,000,000

$323,000,000

$122,000,000

$18,000,000

$182,000,000

$206,000,000

$585,000,000

$8,272,000,000

130

190

529

529

6480

60

4630

1641

1940

236

2007

2790

1666

2113

15700

2113

2113

93

883

100

400

800

1208

192

1912

1500

558

1554

584

125

2126

1358

666

58267

SBA Communications

Phoenix Tower

Phoenix Tower

Phoenix Tower

American Tower

Phoenix Tower

American Tower

SBA Communications

American Tower

American Tower

SBA Communications

American Tower

American Tower

SBA Communications

American Tower

BR Towers

Grupo TorreSur

American Tower

American Tower

BR Towers

Torres Unidas

SBA Communications

Grupo TorreSur

American Tower

BR Towers

American Tower

American Tower

American Tower

American Tower

American Tower

American Tower

Grupo TorreSur

American Tower

Totals / average

Torresec

Amzak/Teletower

T4U

T4U

TIM

American Tower

BR Towers

Oi

Nextel

Z-Sites

Oi

Nextel

Nextel

Oi

GTP

Oi

Oi

Telefonica

Axtel

Sitesharing

Telefonica

Telefonica

Oi

Telefonica

Telefonica

Telefonica

Telefonica

Telefonica

Telefonica

Telefonica

Millicom/Tigo

Telefonica

Sitesharing

Ecuador

Dominican Republic

Brazil

Brazil

Brazil

Panama

Brazil

Brazil

Brazil

Brazil

Brazil

Brazil

Mexico

Brazil


Brazil

Brazil

Brazil

Mexico

Brazil

Chile

Brazil

Brazil

Brazil

Brazil

Brazil

Chile

Mexico

Mexico

Colombia

Colombia

Brazil

Brazil

2015

2015

2015

2015

2014

2014

2014

2014

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2012

2012

2012

2012

2012

2012

2012

2011

2011

2011

2011

2011

2011

*American Tower

SBA Communications

Grupo TorreSur

5,000 10,000 15,000 20,000 25,000 30,000 35,000

18,851

7,000

6,300

*Telesites 10,800

3,677

527 196520 303541 130

Dominican Republic

Ecuador

Unknown

8,717

1,165 579

464


1000

800

1200

600

400

200

Continen

tal*

Centen

nial

Torres

Unid

as

Mex

ico Tower

Partner

sNM

S**

600

1278

600

175250

400 350

51105 40 40

155

131

480

65

690 400

100

901

QMC*

1203

CSS

Torrec

om

753

Brazil

Tower

Company

IIMT

Innovatte

l

(Torr

esec

)***

200

40

Torres

Andin

as

Highlin

e

do Bra

sil

Torre

s Onlin

e

60

Torre

s de P

anam

a

142

Phoenix

Tower

556

189

125

15

Inter

national

107

Intel

li Site

Solutio

ns

TOCSA

Skysit

es

Teleco

m Torr

es

34%

20%7%

31%

4%

4%

Crown Castle

American Tower

SBA Communications

Verizon

AT&T

Miscellaneous



Company acquisition

Company acquisition

Company acquisition

SLB


Company acquisition

SLB

SLB

Company acquisition

SLB

SLB

SLB

SLB

Company acquisition

SLB

SLB

SLB

SLB

Partial acquisition

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

SLB

Partial acquisition

$185,185

$211,231

$321146

$179,897

$546,610

$321,375

$148,029

$238,896

$162,328

$305,732

$118,788

$138,665

$193,548

$283,126

$222,500

$213,576

$171,875

$131,799

$150,000

$172,043

$207,851

$208,904

$144,000

$85,607

$151,694

$878,378

$200,349

$1,200,000,000

$978,000,000

$527,000,000

$349,000,000

$129,000,000

$645,000,000

$413,000,000

$398,000,000

$343,000,000

$4,800,000,000

$251,000,000

$293,000,000

$18,000,000

$250,000,000

$178,000,000

$258,000,000

$33,000,000

$252,000,000

$225,000,000

$96,000,000

$323,000,000

$122,000,000

$18,000,000

$182,000,000

$206,000,000

$585,000,000

$8,272,000,000

130

190

529

529

6480

60

4630

1641

1940

236

2007

2790

1666

2113

15700

2113

2113

93

883

100

400

800

1208

192

1912

1500

558

1554

584

125

2126

1358

666

58267

SBA Communications

Phoenix Tower

Phoenix Tower

Phoenix Tower

American Tower

Phoenix Tower

American Tower

SBA Communications

American Tower

American Tower

SBA Communications

American Tower

American Tower

SBA Communications

American Tower

BR Towers

Grupo TorreSur

American Tower

American Tower

BR Towers

Torres Unidas

SBA Communications

Grupo TorreSur

American Tower

BR Towers

American Tower

American Tower

American Tower

American Tower

American Tower

American Tower

Grupo TorreSur

American Tower

Totals / average

Torresec

Amzak/Teletower

T4U

T4U

TIM

American Tower

BR Towers

Oi

Nextel

Z-Sites

Oi

Nextel

Nextel

Oi

GTP

Oi

Oi

Telefonica

Axtel

Sitesharing

Telefonica

Telefonica

Oi

Telefonica

Telefonica

Telefonica

Telefonica

Telefonica

Telefonica

Telefonica

Millicom/Tigo

Telefonica

Sitesharing

Ecuador

Dominican Republic

Brazil

Brazil

Brazil

Panama

Brazil

Brazil

Brazil

Brazil

Brazil

Brazil

Mexico

Brazil


Brazil

Brazil

Brazil

Mexico

Brazil

Chile

Brazil

Brazil

Brazil

Brazil

Brazil

Chile

Mexico

Mexico

Colombia

Colombia

Brazil

Brazil

2015

2015

2015

2015

2014

2014

2014

2014

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2012

2012

2012

2012

2012

2012

2012

2011

2011

2011

2011

2011

2011

* American Tower’s Brazil count is pro rata to the closing of the second tranche of TIM Brazil towers* Creation of Telesites remains subject to regulatory approval. We understand Telesites has a BTS contract from Claro Costa Rica* QMC has a portfolio of 901 towers across Brazil, Mexico, Colombia and Puerto Rico* Continental Towers owns a portfolio of ~690 towers, which their website claims are distributed across Mexico, Dominican Republic, Jamaica, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama and Colombia* NMS has a portfolio of 600 towers across Nicaragua, Mexico, Colombia and Peru* Innovattel (Torresec) owns a portfolio of 350 towers across Puerto Rico, Colombia, Argentina and Peru

TowerXchange forecasts for MEA towers in 2016

< Towercos will own 80,000 towers in SSA by Q3 2016, rising from today’s

29% market share to 44%

< Plus 19,000 towers in MENA; 13.5% market share

< Double digit organic growth in SSA, almost all through towercos

< SLBs less predictable due to consolidation

< Drive toward liquidity events

Thank you!Kieron Osmotherly, Founder & CEO

TowerXchange

E. [email protected]

M. +44 7771 148001

W. www.towerxchange.com

welcome to the 3rd annual towerxchange meetup africa! · welcome to the 3rd annual towerxchange...

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