30 Jan Advent of 5G, pressure to deliver quality service to spur telecom tower growth: Indus CEO
New Delhi: The advent of 5G technology and competition between telecom operators to deliver high quality network experience provides a huge growth opportunity for tower companies, Bimal Dayal, CEO & MD of Indus Towers said.
“Globally, we are witnessing the advent of 5G and if you’ve read press releases, including one yesterday from , India is not expected to be far behind, we believe over the next 12 months the discussions on platforms, trials for use cases, discussion on spectrum availability and pricing will gather steam,” Dayal said during the company’s earnings call on Friday.
He was referring to Airtel’s demonstration of live 5G services on its commercial 4G network in Hyderabad using 1800 MHz band.
He added that as the competition between operators is heating up for quality and technology, plenty of new opportunities are arising for tower companies to focus on. “New business models are hinged on fiber, small cells, data centers, WiFi, smart cities and beyond, along with the macro tower business,” he said.
“I think, keeping in mind yesterday’s announcement, that initially we will see the enhanced mobile broadband as the first thing to be rolled out, higher data rates will be made available,” Dayal said.
“Initially, you will certainly see that 5G will come as a clear loading. The second thing it could spur is bigger densification and push towards indoor coverage as well. And I’m assuming all this would ride on robust fiber backbone as well and fiber last mile. I think all these impacts are a form of great opportunity for company like ours as well,” he said.
He added that mission critical services, which have low latency requirements such as internet-of-things, are still a few years away.
The strong data growth trend in India, aided by the pandemic is a surrogate marker for demand of tower companies and augurs well for the industry.
“Based on industry disclosures in the quarter ending September 30, data volumes grew 25-40% year on year, which is an increase of over 6000 petabytes,” he said.
World’s largest tower company Indus Towers, which merged with in the bygone quarter, has reported a net profit of Rs 1360 crore, up 20.3%.
Its quarterly net tower additions of 3416 towers were the highest in the last six years while net colocation additions of 4204 were the highest in the last three years. Quarterly churn of colocations of 354 was also the lowest in the last four years.