Emerging mobile telecommunications markets are forecast to add a total of 880 million unique subscribers by 2020 . This demand has placed growing pressure on mobile network operators (MNOs) worldwide to compete for subscribers. In response, many MNOs are reducing capital expenditures on towers in favor of investments in customer acquisition and providing higher quality, faster network service. They’re selling their towers to other tower companies and leasing back space on the tower for their own equipment, or going directly to existing towers to lease the needed space.
This shift to a colocation, or co-tenant, model — in which multiple MNOs lease space on towers owned by tower companies — is driving change in the telecom industry.This dynamic environment presents fertile ground for tower companies to increase the overall value of their tower portfolio, positioning them well for growth and making them more attractive for acquisition.