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Lesser Towers; Wider Operations|
- By Sonal Desai, Dec 09, 2006 1836 hrs IST
- Tags : GTL, Reliance Communications, Hutch, Shared Towers
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In a bid to capture a larger pie in telecom infrastructure, GTL Infrastructure Ltd will develop 6,700 shared towers by March 2008, at a cost of Rs 2,030 crore. The company has already inked a deal with Spice and Idea for shared infrastructure projects. Each tower would accommodate three to four operators.
Reliance Communications and Hutch are the other major players in this field.
Vikas Arora, VP, marketing, GTL, notes, "Sensitive installations such as defence, ports, railway and regulatory authorities do not permit construction of towers. Shared towers are the only option for such areas. However, with the union ministry's aim to reach the mobile penetration to the rural areas, operators will have to share towers. It will give them a competitive edge."
Since ARPU is at 0.002 dollars in India, sharing infrastructure is an option to lower costs. It will work on an anchor tenant basis, and fees would be paid in the form of rentals. However, the rent to be charged would be decided later.
Prakash Ranjalkar, chief operating officer, GTL & director, says that the company will raise equity to suit the project requirements. It has Rs 1,000 crore in the bank - Rs 320 crore equity and Rs 700 crore debts. He adds, "We are willing to raise money and look at equity partners."
He informs that GTL is planning to acquire 10,000 existing towers at a cost of Rs 800-Rs 900 crore. "At present, these towers do no have a sharing capacity. We are working on strategies for those and would disclose details at a later stage."
Andrew Seybold an analyst with Andrew Seybold Group LLC has identified data voice as the current rage. He says, "India stands next to US in the usage of data voice. Indians spend 451 minutes on data voice versus Hong Kong that spends 407 minutes. The US spends 789 voice minutes over telephone."
"The split ratio between voice data ARPUs is 73:27. I expect the model to follow in India. At present, India has the lowest ARPUs at 0.002 dollars," adds Seybold.
According to G.Venkatesh, CTO, Sasken, "Telecom players need to work on a long term strategy for voice based offerings," he adds.
On November 2, Reliance Communications approved a scheme for transfer of existing wireless towers to a 100% subsidiary.
Anil Ambani, chairman, ADAG in a press statement said, "This is the first of a series of initiatives we will be taking to remain asset-light, and enhance our competitiveness, ultimately leading to unlocking of further value for the benefit of our nearly 2 million shareholders."
The Board approved the scheme to accelerating wireless subscriber growth in India; increase geographic coverage, particularly in less dense regions, creating the need for setting up substantial new towers infrastructure and increase network capacity requirements to sustain additional users and higher Minutes of Use (MoU).
The company is also considering creating opportunities for tower sharing and co-location, with up to 6 tenants per tower.
Officials inform that the company plans to build 10,000 towers in the next one year. It has already signed with Idea and Hutch for infrastructure sharing.
It may be recalled that the Telecom Authority of India had on November 29 issued a consultation paper on infrastructure sharing.
Nripendra Misra, chairman, TRAI, said in the paper," The capital costs for creating new infrastructures are formidable. It is estimated that 60% roll-out cost of a mobile service is towards setting up of passive infrastructure and only 40% contributes towards active infrastructure / electronics. Therefore, passive infrastructure sharing among mobile service providers assumes crucial importance, as it allows more than one service provider to leverage and ride on common infrastructure."
The paper stated that total number of subscribers by Oct 2006 is 176.78 millions with wireless subscribers contributing 136 million. India had over 100 million mobile subscribers in May 2006 and adds approximately 5 to 6 million subscribers per month.
Infrastructure sharing is equally relevant to the urban areas also, it noted. Here, the presence of 6 to 8 service providers and a fast exploding mobile subscriber base is resulting in more cell-sites being put up by each service provider to cater to the growing traffic requirements. This mars the landscape because of the large number of towers disturbing the aesthetic look of the city.
It observed the growing mobile subscriber base is putting immense pressure on the scarce resources of spectrum, infrastructure and interconnection. As of today, lack of point of interconnect is a critical bottleneck hampering the expansion of telecom service. It is also adversely impacting the quality of service parameters of all the service providers.
Infrastructure sharing can also promote greater service-based competition and reduce infrastructure duplication.
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Discussion Board
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by Sumeet on Jan 15, 2010 12:38 PM
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by vijay kumar on Dec 15, 2009 07:18 PM
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by Yuvraj Singh Sh on Dec 15, 2009 03:44 AMDear Sir, I Have Yuvraj Singh. I am interested in putting tower of HUTCH, IDEA, TATA-INDICOM,AIRCEL, AIRTEL , Reliance, BSNL if any company interested inform us at this address:-Mexico Gas Service Shop. NO. 22 Krishna dham,Gram-Vijay Pura, Behind 52 (Fit) Hanuman ji, Purani Chungi, Agra Road , Jaipur Contact No. - 0141-6458570, 09828104558-09024793693 Thanking You
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by v.a.manikandan on Dec 12, 2009 01:12 PM
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by M Ravi Kumar on Aug 28, 2008 08:46 PM
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by randip kumar ch on Nov 28, 2009 09:30 PM
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by bidyut majumder on Nov 20, 2009 12:33 PM
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by Diwakar Singh on Nov 13, 2009 11:21 AM
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by SYED IMTIAZ on Oct 28, 2009 09:25 PM"SPACE AVAILABLE TO INSTALL CELLULAR/BROADBAND TOWER" Location : NACHARAM,HYDERABAD -76, Building : G+3TOTAL SPACE 4000SFT.WE R THE ABSOLUTE OWNER OF THE BUILDING.INSTALL THE TOWER ON 4 FLOOR.PLEASE LET ME KNOW THE DETAILS OF PROCEDURE FOR INSTALLING THE MOBILE TOWER, WHAT ARE THE DETAILS REQUIRED AND ABOUT THE RENT AND THE ADVANCE THEY PAY AND THE CONTACT PERSON NAME AND DETAILS REQUIED. THANKS REGARDS FROM SYED ABDUL IMTIAZ.MOBILE NO.9391133824
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by R.P.Singh on Sep 06, 2009 11:20 PM
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by CA. Ritesh Puny on Sep 06, 2009 09:18 PM
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by GURJEET BHATIA on Sep 06, 2009 09:02 PMDear sir, I have a property which is on Gulabh bagh main road,Transport nagar(two sites),One site opp. mashal hotel a.b.road and in New Rani bagh extension in Indore(m.p.) immediate making it suitable for those wishing to install telecom tower. Any intrested company which is interested is requested to contact me on 9302106215 - Gurjeet bhatia-INDORE (M.P.)
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by Rakesh kumar on Sep 01, 2009 10:59 AM
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by Rudraksha Sucha on Aug 29, 2009 12:40 PMHi My maternal uncle name is Prem and he has a plot of 3000 sqft in Labpur in West Bengal. The city is located near santiniketan (Bolpur). He is interested in letting the same for Installation of Mobile tomwer. His contact no : Landline - 03462- 266466 and mobile no -0-9732072180. Interested party may contact him any time between 9 a.m to 9 p.m all days. Alternatively, you can contact me on 09910333153
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by V.P.Singh on Aug 25, 2009 06:42 PMDear Sir , I am interested to let my building on rent for TOWER .I have also sufficient land on main road.If finalised by you then respected terms & condition will be finalised by acceptance of both the parties. Location is situated on main road before Sargam Chauraha,Nai bazar ,Naini,Allahabad Contact no.09454969716
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by Anup Kumar on Aug 21, 2009 11:28 PMDear sir, I have a property which is in immediate vicinity of Kamal Model School and Bank of Baroda.It's front opens onto Jaildar Enclave road.The property has ample area and 4 floors having a total height of 40 ft. making it suitable for those wishing to install telecom tower. Any intrested company which is interested is requested to contact me on 9717131192
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by YOGESH AHIR on Aug 21, 2009 01:15 PM
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by RAMESH on Jul 22, 2009 12:07 PM
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by chetan on Jul 22, 2009 12:00 PM
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by YOGESH on Sep 13, 2008 04:42 PM
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by Vikram kumar on Sep 13, 2008 02:06 PM
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by shahnawaz ansar on Sep 08, 2008 04:24 PM
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by ibrat perween on Sep 05, 2008 03:14 PM
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by jyothi on Sep 05, 2008 03:03 PM
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by shamim haider on Sep 04, 2008 01:25 PM
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by Nitin Wankhede on Aug 12, 2008 03:54 PM
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by Nitin Wankhede on Aug 12, 2008 03:42 PM
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by sanjay Agrawal on Aug 05, 2008 12:42 AMRespected sir, i sanjay agrawal ,jadia bazar, dist. supaul ,bihar. phone-06477241331,mobile;9939524955 is interested in putting telecom towers of any company.i have large quantity of land on main road in jadia bazar ,chattapur,triveniganj(dist; supaul )bihar.i also hav land in manihari (dist;katihar),gulabbagh,jalalgadh(dist;purnia). i will be thankful to u if u help me out.
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by sanjay Agrawal on Aug 05, 2008 12:34 AMRespected sir, i sanjay agrawal ,jadia bazar, dist. supaul ,bihar. phone-06477241331,mobile;9939524955 is interested in putting telecom towers of any company.i have large quantity of land on main road in jadia bazar ,chattapur,triveniganj(dist; supaul )bihar.i also hav land in manihari (dist;katihar),gulabbagh,jalalgadh(dist;purnia). i will be thankful to u if u help me out.
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by Ramandeep on Jul 31, 2008 10:29 AM
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by Ramandeep on Jul 31, 2008 09:56 AM
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by onkar on Jul 30, 2008 07:23 PM
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by krishan sinwer on Jul 13, 2008 09:54 AMhi sir this is krishan sinwer from shahpuria,sirsa.sir i want to use your services in our village,sir we dont have any tower in our locality upto 20 km,that is a problem 4 us.we have enough land to set a tower.so plz give a chance to serve u,this will solve our problem of internet connection 4 me. plz pay attention to our request krishan sinwer-ph-9812700015,9466400007
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by c s chhabra on Jul 02, 2008 01:03 AM
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by Ashwani singh on Jun 25, 2008 11:34 AMI have good space (own land and roof) for Tata Indicom tower Bcoz Tata Indicom Networking Team Selected my village for Best covrage for network. My Address Ashwani singh S/O Shri ramesh Pal Singh, Village Kutani, Post Dadri Toye,Distt- jahjjar Haryana (India) Telephone No-1251-698289,9312394710,9911394710
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by Ashok Kumar Sin on Jun 20, 2008 10:02 PM
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by Ashok Kumar Sin on Jun 20, 2008 10:00 PM
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by sunil kumar on Jun 08, 2008 02:40 PM
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by Surendra Pandey on Jun 01, 2008 04:38 PMI invite all mobile companies to establish tower infrastructure at My Land in Utter pradesh Dist JaunPur Post Barsathi. I have full facility with 3 phase Electricity connection, One 1500 SQF Banglow and 10 Acr Land with Road connected. Land is available for FREE OF COST. NO Charges for LEASE OR RENT. THE PURPOSE IS MAKE FARM HOUSE ALIVE with public activity Contact 09869434858
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by ROHIT SHARMA on Apr 30, 2008 12:35 AMsir/Maidam.I respected to you.As per requirement for the my home and land avaliable in any time at bihar state of munger district.So,I will be give to my land and home for rently purpose and provided to any cellular company for the communication tower.Therefore,i wating for reply and comments.My personal details given below-RAMAN KUMAR/ROHIT SHARMA.contact no-0771-3256451,0771-2563575,09234143048,09430029858,0771-4266427,0771-2563685
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by ROHIT SHARMA on Apr 30, 2008 12:30 AMsir/Maidam.I respected to you.As per requirement for the my home and avaliable in any time at bihar state of munger district.So,I will be give to my land and home for rently purpose and provided to any cellular company for the communication tower.Therefore,i wating for reply and comments.My personal details given below-RAMAN KUMAR/ROHIT SHARMA.contact no-0771-3256451,0771-2563575,09234143048,09430029858,0771-4266427,0771-2563685
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by Shyam on Mar 01, 2008 04:39 PM
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by Kumar Gaurav on Jan 29, 2008 03:18 PM
