Study by edotco and Roland Berger on the economic growth potential of TowerCos for emerging markets

The edotco group, one of the leading integrated telecommunications infrastructure services companies in Asia, has launched a study in collaboration with Roland Berger entitled “Towering Above: Building Tomorrow’s Digital Infrastructure in Asia”. The study estimates that Tower Companies (TowerCos) can help Mobile Network Operators (MNOs) save up to $10 billion through infrastructure sharing and generate cumulative savings of up to $67 billion for consumers through affordable services. 5G connectivity by 2025. Additionally, the study also shows that TowerCos can enable sustainable digital connectivity by reducing up to 17 million metric tons of carbon footprint by 2025.

The report, launched during a panel discussion with edotco, Roland Berger and the International Finance Corporation (IFC), explores the critical roles and potential impact of TowerCos in nine key Asian markets – Malaysia, Indonesia, Thailand, Bangladesh, Pakistan, Philippines , Myanmar, Cambodia and Sri Lanka. The report also shows how TowerCos are driving sustainable digital connectivity to realize incremental socio-economic benefits for industries, corporations and governments, in addition to assessing how key policies and regulatory reform recommendations can unlock such opportunities. .

TowerCos and MNO in the next normal

According to the report, digital infrastructure is becoming a key enabler of the digital economy, with 5G set to transform the industry. TowerCos are now transforming their roles to become providers of digital infrastructure, in addition to working closely with industry stakeholders to undertake deeper forms of active infrastructure sharing. Not only are these services key to driving development in the aftermath of the COVID-19 pandemic, but these partnerships are also key to preparing economies for the era of 5G – an era that could potentially further revolutionize network usage. and open up new opportunities while facilitating MNOs. ‘ investment and deployment challenges.

“As MNOs rapidly expand their network in low average revenue per user (ARPU) markets such as Asia, they face a significant challenge in controlling their cost per GB while striving to meet the demands of industry and adhering to the policy and policy provided by regulators regulatory outcomes. These can only be sustainably resolved through a higher degree of infrastructure sharing,” said Gayan Koralage, Director of group strategy, edotco Group.

The report also noted that – although Southeast Asia and South Asia are among the fastest growing sub-regions in terms of average data usage per user – MNOs have not not been able to capitalize on the traffic trend. This leads to a continuous decline in ARPU, making it difficult for MNOs to generate returns commensurate with their cost of capital. “By overcoming the investment conundrums of MNOs, software-defined networking-based solutions and a stronger partnership with next-generation TowerCos can drive greater scalability, speed, and cost benefits. Such partnerships are rapidly rolling out in developed markets, showcasing the emerging catalytic roles of TowerCos in business, society and the environment,” he added.

Regulatory reforms are needed to boost growth and multiply socio-economic benefits

The study further notes that major TowerCos are willing to help MNOs by moving up the value chain. In other words, it’s about offering innovative 5G-enabled solutions such as OpenRAN, Network-as-a-Service and Edge Computing solutions to help MNOs achieve greater cost and network efficiency. “Given the current dynamics of the telecommunications industry, TowerCos must evolve to become active digital infrastructure providers to provide the scalability, efficiency and flexibility needed by the industry. However, an appropriate regulatory environment is needed with five policy reforms essential for energy growth: a strong digital infrastructure mandate, a favorable licensing and ownership regime, active promotion of infra sharing, a streamlined process and the establishment of adjacent services,” said Damien Dujacquier, General Manager. Partner of SEA, Roland Berger.

It also notes that forward-looking regulatory reforms and policy changes are needed for TowerCos to realize its potential in the next normal. These include providing incentives and introducing a more conducive regulatory framework for TowerCos to explore more innovative partnerships and services.

About the edotco group

edotco Group is Asia’s leading regional and integrated telecommunications infrastructure services company, providing end-to-end solutions in the tower services industry from tower rental, colocation, custom build , power, transmission and operation and maintenance (O&M) .

The group operates and manages a regional portfolio of over 50,000 towers in Malaysia, Indonesia, Bangladesh, Cambodia, Sri Lanka, Pakistan, Philippines, Myanmar and Laos. edotco strives to deliver exceptional performance in telecommunications infrastructure services and solutions. Its state-of-the-art real-time monitoring service, echo, has resulted in significant improvements in field operations while maximizing operational efficiency in terms of battery, power and fuel consumption for the telecommunications infrastructure. edotco group was recently awarded the Frost & Sullivan 2021 Asia Pacific Telecoms Tower Company of the Year award for its exemplary growth and performance in Southeast Asia.

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