1. Telecom Towers - India
May 2009

2. Executive Summary
Estimated requirement of X,000 in 2008 and Y,000 by 2015
Market Projected growth rate of x% p.a. in 2008-2015
An estimated y% of towers are shared, which is expected to increase
Telecom tower companies follow four types of business models:
– Captive: Towers are owned & operated by telecom operators
LE
Business – Operator Controlled: Operator consolidates tower infrastructure and hives it off as a separate company
models
P
– Pool and share: Operators jointly setup an independent company for sharing tower infrastructure
– Build and operate: Independent tower companies operate on a ‘build-and operate’ model
Infrastructure
sharing AM
Infrastructure sharing in India is currently limited to passive sharing
S
Positive TRAI initiatives such as granting subsidies from its Universal Service Obligation Fund
(USOF) encourage infrastructure sharing
Estimates indicate significant improvement in profitability as tenancy ratio increases
Indian telecom tower market includes:
– Tower infrastructure companies, owned and controlled by telecom-operator companies like -
Competition – Company A, Company B, Company C
– Independent tower infrastructure companies
Company A is the leading player with x% market share
New entrants include American Tower Corporation, Tower Vision
TELECOM TOWERS – INDIA. PPT 2

3. •Introduction
•Market Overview
•Business Model
•Infrastructure Sharing
•Competition
•M&A and PE deals
•Key Developments
TELECOM TOWERS – INDIA. PPT 3

4. Demand for telecom towers is high to support a rapidly growing
industry leading to emergence of lucrative tower businesses
Overview Tower requirement estimates1
•The telecom tower market size in India is Towers (‘000s)
valued at INR XX bn in 2008 800
•Types of towers 600 x% G H
F
Ground-based tower E
LE
D
400 C
Roof-top tower B
P
A
•All leading mobile service operators are 200
expanding and increasing their coverage by:
Increasing their network
SAM
Increase coverage through tower sharing
Using independent tower networks
0
2008 2009 2010 2011 2012 2013 2014 2015
Level of Tower sharing
•Tower infrastructure is increasingly becoming
Shared Towers
independent of telecom operators y%
•The growing market for towers is also
attracting the attention of private equity funds
x%
to invest in the companies Unshared Towers
Source:
TELECOM TOWERS – INDIA. PPT 4

5. Tower infrastructure is the largest component of setup costs
Ground based tower (GBT) Cost break up GBT
•Towers are erected on ground 100% = INR X mn
Real estate
•Height of the towers are in between x-y feet
z%
•GBTs are ideally suitable for rural and semi-
urban areas
PLE
•Capex involved is in between INR x-y mn Site setup y% x%
Tower setup
Roof type tower (RTT)
SAM
•Towers are placed on roofs of buildings
Cost break up RTT
100% = INR Y mn
Real estate
• In terms of height these towers are shorter
than GBTs z%
•RTTs are ideally suited for Urban areas and
metros Site setup y%
x%
•Capex involved is usually in between INR x-y Tower setup
mn
Source:
TELECOM TOWERS – INDIA. PPT 5

6. Major telecom operators have hived off tower divisions into
separate entities to benefit from favourable capital structure
Type of companies Major tower companies in India
•Market is dominated by tower companies, Independent tower company
owned or controlled by operators Operator-controlled tower company
Company A
Company A x%
Company B
LE
Company C Company B y%
(ITICs) are more recent entrants
MP
•Independent tower infrastructure companies Company C
Company D
z%
w%
New entrants
•American Tower Corporation SA Company E
Company F
Company G
v%
u%
i%
•Ramboll
•Tower Vision Company H j%
•Crown Castle Company I k%
% indicates share of total towers
Source:
TELECOM TOWERS – INDIA. PPT 6

7. Thank you for the attention
The Telecom Towers – India report is a part of Netscribes’ Telecom Industry Series.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA Subhash Chennuri
Phone: +65 9651 6382 Phone: +91 98190 59664
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TELECOM TOWERS – INDIA. PPT 7