TowerXchange Meetup Asia Wi-Fi network name: towerxchange Password: - - PowerPoint PPT Presentation

Welcome to the 6th TowerXchange Meetup Asia

Wi-Fi network name: towerxchange Password: tower123 Download presentations, courtesy of Acsys International Ltd: https://www.towerxchange.com/asia-2019/

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 fjre tests, if the general alarm sounds, please leave the room immediately by way of the nearest fjre 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 Roundtable session I Indus Towers closed-door session (invite only) Networking lunch Roundtable session 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 by and end of Meetup

TowerXchange’s analysis of the global and Asian tower markets

Kieron Osmotherly, Founder & CEO, TowerXchange Pablo 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 towercos

Meetups, 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

• f 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 towers 297,443 258 towercos with <5,000 towers[5] 197,786 American Tower 170,665 Indus Towers 127,946

IHS Towers 24,002 Guodong 20,000 Cellnex 35,560

GTL Infrastructure 27,707 INWIT 22,100

Orange towerco[3] 44,000 Vodafone Towerco[2] 44,100 edotco 29,924

CK Hutchison Networks[4] 28,500

Bharti Infratel 41,050

Deutsche Funkturm 33,000

SBA Communications 30,768

Crown Castle 40,039 Reliance Jio Infratel 175,000

Source: TowerXchange

Towerco penetration and business models in difgerent 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% SSA MENA 94.2% 0.2% 0.4% 5.2% 4.3% 35.2% 60.5% Operator-led towerco Pureplay independent towerco Joint venture infraco MNO-captive sites

Global

55.6% 13.1%

1.2%

30.2%

11.9% 72.7% 15.3%

Towerco 2.0: From steel and concrete to signal and service

Core tower & rooftop business

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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

CTC Independent towercos

3.9% 96.1%

Source: TowerXchange

Indian market restructuring ongoing

< Indus-Bharti and RJio Infratel- Brookfjeld deals imminent < Despite MNO restructuring, fjnancial struggles continue < RJio keeps growing and pushing innovation < What future for smaller towercos? Consolidation? < Future: BSNL/MTNL towers? Innovation and diversifjcation

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

127,946 175,000 75,073 27,707 41,050

15,000

5,000

75,000 8,400 6,355 2,000 100

Bangladeshi tower market fjnally moving

< New towercos had a complicated fjrst year... < But now moving in the right direction < MNOs still need thousands

• f towers

< Robi and GrameenPhone face dispute

Grameenphone Banglalink Robi edotco Teletalk, CityCell and non-traditional MNOs

Sources: TowerXchange research, edotco, Hardiman Telecommunications

14,000 9,000 1,500 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

700 45 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 fjnalise 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 expand All are speaking at the TowerXchange Meetup MENA, Dubai 28-29 January

Source: TowerXchange

Towerco activity Towerco activity plus major tower sale rumoured MNOs rumoured to be considering a major tower transaction Confjrmed tower sale process underway No towerco activity or deal rumours

The Philippines are ready for take ofg

< DICT to release common tower policy < New MNO Dito Telecommunity will drive

• rganic growth

< PLDT and Globe agree deals with towercos < Rollout to start imminently (with challenges ahead!)

8,000

• 9,000

Globe Smart-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 diversifjcation

*after Indosat’s sale is completed

Protelindo Tower Bersama Mitratel STP IBS Tower Centratama Menara Balitower Persada Sokka Tama Gihon PEKAPE Others Telkom + Telkomsel XL Indosat Ooredoo

Source: TowerXchange

Towerco-owned Operator-captive 15,485 19,233 15,213 6,451 17,500 4,000 5,500

5,059

1,641 565 300 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

Source: TowerXchange research

Independent towerco towers MNO captive towers

3000 3500 4000 2500 1500 2000 1000 500 3000 1800 2071 994 1300 300 400 4000 1200 969 371 100 ~500

IGT Apollo* edotco PAMEL*

600

EFT MNTI KPR

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

OCK Ooredoo Mytel MPT 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 fjberisation < 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

Viettel VNPT Vietnamobile Gmobile Small independent towercos OCK Golden Towers Nisco MobiFone

40,000 20,000 20,000 4,000 2,000 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

• pportunities

NTA wants more towercos! IBS and new build

• pportunities in

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

SiteSee

Thank you – enjoy networking with your peers!