August 2024
Digital infrastructure revolution is underway in Emerging Asia, driving significant developments, especially in the telecom tower market.
Below are some key insights on this market:
Rapid Growth: The telecom tower market in Emerging Asia has seen substantial growth, with MNOs shifting ownership to TowerCos through Sale & Leaseback and Built-To-Suit initiatives. This transition is driven by decreasing ARPU, increasing costs, and the need for heavy investment to support 5G deployment.
Investment Opportunities: There is a substantial digital infrastructure gap, with experts estimating that a lot of additional towers are needed to meet coverage goals in underserved areas. This presents significant opportunities for TowerCos.
Regulatory Support: Policies such as the 2020 Common Tower Policy in the Philippines or the 2023 Revised Law on Telecommunications in Vietnam as well as recent regulatory updates encourage shared infrastructure use, attracting independent TowerCos and facilitating faster network deployment.
Each market has its specificities, namely:
ID - Indonesia: Leading with over 95% TowerCo penetration, Indonesia's market benefits from supportive policies, high 5G adoption rates, and investment prospects in rural areas.
VN - Vietnam: Despite limited TowerCo presence, Vietnam's market is poised for growth with government initiatives promoting 5G and infrastructure sharing.
PH - Philippines: Set for growth with policy reforms and increased competition, the Philippines' market is transitioning towards higher TowerCo ownership to improve nationwide coverage.
At Index Partners, we are committed to empowering digital connectivity and driving economic and sustainable growth in digital infrastructure.
Join us in shaping the future of telecommunications in Emerging Asia! For more information and partnership opportunities, reach out to us at contact@index-partners.com
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