Welcome to the 2nd
TowerXchange Meetup MENANetwork name: Le Meridien Conference
Password: tower123Download presentations: www.towerxchange.com/mena-2020
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Key logistical information
Wi-Fi network name: Le Meridien ConferencePassword: tower123 First Aider: Please alert the staff at the registration desk who will assist you. Fire Evacuation: No planned fire tests, if the general alarm sounds, please leave the room immediately by way of the nearest fire exit and assemble at the Seafood parking assembly point. Come out of the building and turn right. Networking reception: 5-7pm in the exhibition hall Networking dinner: Dinner in the Wasl Ballroom at 7pm. Separate registration required. Directions: Exit through the double doors by roundtables E and F to the outside and turn right, staff will be on hand to direct you. Online networking tool: http://moreconference.com/towerxchange-meetup-mena-2020 quote the email address you used to register and use morecode: CC29D. The platform will remain live until two weeks after the event. Instructions for smokers: Outside the great ballroom
Meetup agenda
Day One | Tuesday
Plenary session
Plenary session
Networking refreshment break
Roundtable session I and TAWAL closed-door session
Networking lunch sponsored by
Roundtable session II and Helios closed-door session
Networking refreshment break
Plenary session
Plenary session
Networking reception in Expo Hall
Networking dinner in Wasl Ballroom
Day Two | Wednesday
Plenary session
Plenary session OTC closed-door session
Networking refreshment break
Roundtable session III and IHS closed-door session
Networking lunch sponsored by
Plenary session
Networking refreshment break
Plenary session
End of Meetup
TowerXchange’s analysis of the evolving Middle East & North Africa landscape and
changes in the ecosystemKieron Osmotherly, Founder & CEO, TowerXchange
Aninder Khera, Head of Research, Middle East & North Africa, TowerXchange
Join the conversation: @TowerXchangeCommunity: http://www.linkedin.com/groups/TowerXchange-4536974
Research: www.towerxchange.com
Networking club for towercosMeetups, CXO dinners, must-read-journal, 4 million words of research, who’s whos
ESCO Roundtable 24-25 March, Casablanca
Meetup Europe 2020 19-20 May, Barcelona
Meetup Americas 2020 23-24 June, Boca Raton
Meetup Africa 2020 13-14 October, Johannesburg
Meetup Asia 2020 8-9 December, Singapore
Meetup MENA 2021 26-27 January, Dubai
TowerXchange is tracking 304 towercos that now own 3,362,656 of the world’s 4,817,067 investible towers and rooftops (69.8%)
[1] China Tower Corporation area reduced to better illustrate the relative global market share of the other towercos - if illustrated to scale, CTC’s area would be 1.45x the rest of the
[4]Hutchison Towerco count excludes their UK and the majority of their Swedish towers to avoid double counting with MBNL and 3GIS [5] Towercos with <5,000 towers count
China Tower Corporation[1]
1,979,000
29 towercos with 5,000-19,999 towers297,443
258 towercos with <5,000 towers[5]
197,786
American Tower170,665
Indus Towers 127,946
IHS Towers 24,002
Guodong 20,000
Cellnex35,560
GTL Infrastructure27,707
INWIT 22,100
Orange towerco[3]
44,000
Vodafone Towerco[2]
44,100
edotco 29,924
CK Hutchison Networks[4]
28,500
Bharti Infratel 41,050Deutsche Funkturm33,000
SBA Communications30,768
Crown Castle40,039
Reliance Jio Infratel175,000
Source: TowerXchange
Towerco penetration and business models in different regions
Source: TowerXchange
China
India
CALA Oceania
S & SE Asia(Exc India)
Europe
N & E Asia(exc China)
96.1% 3.9%
39.4%
15.4%9%
36.2%61.6%21.4%
17%
100%
11%
42.5%46.6%
12.8%
87.2%
USA & Canada
6.5%
64.3%
29.2%
10.9%
SSAMENA94.2%
0.2%0.4%
5.2%4.3%
35.2%
60.5%
Operator-led towerco Pureplay independent towerco Joint venture infraco MNO-captive sites
China
India
CALA Oceania
S & SE Asia(Exc India)
Europe
N & E Asia(exc China)
97.3% 2.7%
15.4%
15.5%
9.6%
59.6%46.6%
21.8%
31.5%
14.7%66.1%
19.2%100%
11%
36.1%48.2%
13%
87%
USA & Canada
7%
66%
27%
15.6%
SSAMENA99.5%
0.01%0.04%
4.6%59.2%
36.2%
Global
55.6%
13.1%1.2%
30.2%
11.9%72.7%
15.3%
Towerco 2.0: From steel and concreteto signal and service
Core tower & rooftopbusiness
Network-as-a-service
In
du
stri
al 5
G a
pps
Edge
Metro fibre FTTT BTS h
otels
C
onti
guou
s se
rvic
e
Indoor coverage
Wi-Fi Small cells DIS &
DA
S
Adv
erti
sing
Agg
regated data Io
T services Hosting sensors Street furnitu
re
P
ower
-as-
a-se
rvice
E
V charging Shared power system
s
A
rtif
icia
l int
ellig
ence
Data Monitoring
New services New assets
Diversity within the 275,104 tower MENA market
< Fewer than 6% of the region’s towers sit with towercos
< From mature GCC markets to developing markets
< From consolidation of parallel infrastructure to aggressive BTS
< From reliable grids to diesel-dependent tower networks
Source: TowerXchange
Saudi Arabia35,500
Iran37,106
Pakistan 35,043
Morocco19,054
Algeria19,000
Egypt22,704
Iraq14,769
UAE13,000
Tunisia8,383
Afghanistan6,645
Qatar5,000
Jordan6,836
Kuwait4,100
Lebanon 2,600
Bahrain1,500
Oman8,000
A history of tower transactions, joint ventures and towerco activity in MENA
2010
2016
2011
2017 2017 2017 2017 2019 2020
2014 2016 2016 2016
Bahrain & Jordan: Batelco explore the sale
of tower portfolios
Saudi Arabia: Zain and TASC
agree tower sale
Saudi Arabia: Saudi Telecom Company and
Mobily explore tower JV
Saudi Arabia: STC acquire GO’s
towers
Pakistan: edotco acquire
Tanzanite
2015
Egypt: Mobinil and Orange agree
tower sale
Pakistan: Jazz and edotco agree
tower sale
Kuwait: Zain and IHS Towers agree
tower sale
Oman:Oman Tower
Company established
Saudi Arabia: Zain and IHS Towers
agree tower sale
Iran: Fanasia commence commercial
operations
Saudi Arabia: Zain and Mobily commence tower
sale processes
Algeria: Djezzy explore tower sale
options
Saudi Arabia: Saudi Telecom Company and Mobily re-
open tower JV discussions
Cancelled Cancelled
Cancelled Cancelled
Mobily process cancelledAbandoned Active
Deal closed Active
2019
Saudi Arabia:STC establish
TAWAL
ActiveDeal closed Pending
Abandoned Abandoned
Cancelled
Drivers and inhibitors of the emerging tower industry in MENA
Drivers< Soaring demand for data and fiberisation < Freeing capital for 5G< Increasing operational efficiencies < Infrastructure sharing to reduce opex< Consolidate parallel infrastructure< Credit worthy anchor tenants< Strong local partners and interest from international firms < Investors keen to diversify into data centres and fibre < Regulatory stimuli
Inhibitors< Less financial pressure to monetise< Less operational complexity< Government stakes & security concerns< Network as competitive differentiator< Lack of clear regulatory frameworks< Political and economic instability< Track record of stalled SLB processes
Current and future tower opportunitiesin MENA
Towerco activity Towerco activity plus major tower sale rumouredMNOs rumoured to be considering a major tower transactionNo towerco activity or deal rumours
ACG operates 100 towers; ESCO?
edotco active, Jazz mayrestart SLB
Iranian Towers 1000 sites
Could towercos help rebuild?
TASC Towers established
Zain-IHS 1700 tower SLB
Tower sale rumor; OTC est.
STC carve-out 14200 to TAWAL
Tunisie Telecom rumours
HOI-MEA 38 sites;Orange & Etisalat ESCO RFPs;
New towerco licence imminent
Djezzy retains appetite Alfa ESCO with IPT
KSA tower market poised for growth
Source: TowerXchange
Saudi Telecom CompanyTAWALMobilyZain
14,200
2,400
11,000
8,100
< New towerco TAWAL < 14,200 carve-out of stc< BTS ambitions < Regional diversification
Kuwait
Source: TowerXchange
< IHS/Zain Towers deal of 1,700 towers< 4100 towers, significant parallel infrastructure< Towerco entrance will increase infrasharing < MNOs focusing on cost optimisation Zain
Ooredoo
Viva
1,700
1,200
1,200
BTS and ESCO opportunities in Oman
< Oman Tower Company established;
277 towers, BTS MOUs & SLB ambitions
< New MNO active in 2020
< Could see ESCO activity
< Omantel SLB in 2020?
What’s the future for Egypt?
Source: TowerXchange
< 23,000 Towers - 30% shared
< 4,000 subs per tower, the highest in the
MENA region
< New towerco licences in 2020
< Orange and Etisalat 1000 site ESCO RFP’s
< 1500 new sites per year
Etisalat
Orange
Vodafone
HOI
Telecom Egypt
6,000
2,00038
8,500
6,166
Morocco, Tunisia and Algeria
< Morocco: Offers the scale to attract international tower investment < Algeria: Djezzy keen to SLB, FDI rules permitting< Tunisia: Tunisie Telecom keen; Active infrastructure sharing; NATIC poised to BTS
MobilisDjezzyOoredoo
7,500
6,000
4,500
Algeria Morocco Tunisia
Maroc TelecomInwiOrange
10,000
5,000
4,054
Tunisie TelecomOrangeOoredoo
4,5002,500
1,383
Towercos professionalising infrastructure sharing in Pakistan
Source: TowerXchange
< Jazz towers coming back to market< Enfrashare (1,300) joins edotco (1,600)< Culture of infrasharing driving tenancy ratios 1.25-1.5< Decommissioning and power issues
edotcoTelenorCMPak (Zong)UfoneJazz (Deodar)AWAL TelecomEnfrashare
1,60045
1,300
7,400
7,100
6,100
11,700
Other MENA markets in brief
< Afghanistan: 100 site towerco ACG, Roshan and Etisalat both
exploring ESCOs
< Bahrain: TRA goal of site sharing from 12% to 40%
< Iran: MCI+RighTel+Fanasia 1000 site JV, MLL with MTN imminent
< Iraq: International capital for telecom infra
< Jordan: TASC Towers active
< Lebanon: IPT working as ESCO with Alfa and Touch
< UAE: 13,000 MNO captive towers; 5G front runners
MENA front runners of 5G evolution andsmart cities
< The criticality of infrasharing to enable 5G
< Stronger Towerco/MNO relationship to facilitate 5G rollout
< Demand for new typologies and fiberisation
< Govt smart city initiatives across region including KSA, GCC,
Egypt and North Africa
Thank you – enjoy networking with your peers!
An Company
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