Demand for Telecom Towers to Witness Rapid Surge

  • The increasing reach of mobile phones and increasing competition among service providers are some of the current drivers of telecom tower market.
  • Regulations from government and telecom authorities is expected to put restraints on telecom tower market.
  • Recent trends have shown high prospective of strengthening of telecom tower network.

Mobile telecom industry has witnessed significant growth rate in last decade and it is expected to grow consistently over different generations of network communications. Starting from ‘0G’ mobile telecom service (MTS) to current long term evolution (LTE) 4G, the mobile telecommunication has turned as necessity to everyone. The second generation (2G) mobile telecommunication gave a major boost to the mobile telecom industry as it surprised consumers with internet browsing offering on mobile phones along with clear voice calling facilities. Now, most of the countries possess 4G connectivity which is a highly dense networking system providing real time voice calling and enhanced data transfer rate. Also, few countries like Japan and U.S. are implementing 4.5G and in development of 5G network communications.

The telecom tower are the arteries of any mobile telecommunication system. The telecom tower is a structure hosting a transceiver unit to maintain connection with thousands of mobile phones and The Mobile Telephone Switching Office (MTSO). The telecom tower offers wide range of multi-channel frequencies to thousands of cell phones in the network zone. The main advantage of multichannel frequency is that it can offer tens of mobile phones in single network like conference calling, where many devices are connected to single network and can transmit and receive at same time. Also, it offers better data transfer rates and connectivity. The telecom tower are tall steel structures with transceiver unit at the top to cover maximum possible area.

The telecom tower market is primarily dependent on mobile subscriber density and number of telecom service providers in any region. The increasing reach of mobile phones to almost every remote area, increasing competition among service provider for better network coverage are some of the current drivers of telecom tower market. Also, permissible height limits in any area restricts service provider to install multiple towers in small zones. Moreover, increasing the number of telecom service providers, internet providers, Wi-Fi and broadband providers are expected to drive the telecom tower market in the forecast period.

Whereas, the harmful effects of high frequency radio waves or microwaves on human and environment is expected to limit telecom tower market. Also, regulations from government and telecom authorities is expected to put restraints on telecom tower market. Moreover, high installation cost, high operational costs and squeezing space are some other factors which can suppress telecom tower market growth.

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Recent trends have shown high prospective of strengthening of telecom tower network, where multiple new technologies are liable to grow. Ongoing researches on ‘Internet of Things (IoT)’, real time security devices monitoring and accessibility, remote health care services, etc. are some emerging technologies projecting to increase the burden on telecom tower in coming years.

The telecom tower market can be segmented in two categories based on type of tower and mounting area. On the basis of type of tower the telecom tower market can be segmented as – Lattice tower, Guyed tower, Monopole tower, Camouflage towers and Mobile (vehicle mounted) tower.

On the basis of mounting area the telecom tower market can be segmented as – Green Field Tower (mounted on ground or suitable foundation) and Roof Top Tower (mounted on roof of any building).

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The telecom towers are generally installed either by telecom service provider or third party infrastructure providers. Some examples of telecom service providers are China Mobile Ltd., Verizon Communications Inc., AT&T Inc., Vodafone Group Plc, Bharti Telecom Ltd., China Unicom Ltd., Telenor Group, MTN Group and Telstra Corp. Ltd.

Yogesh Sengar

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