Telecom tower tenancy may hit 2.

48 by '20
Via Deccan Herald | Jun 17, 2015
Driven by an increased need for data in mobile phones, the Indian telecom tower
tenancy ratio is expected to reach 2.48 by 2020 according to a report by Deloitt
e. Industry tenancy ratio is expected to grow from 1.77 in FY 2015 to 2.48 by 202
0 primarily due to focus on data. Overall site tenancies (2G, 3G & 4G all inclus
ive) are expected to increase to approximately 12.68 lakh by FY 2020, Deloitte sa
id in a report titled Indian Tower Industry: The Future is Data. Tenancy ratio r
efers to the number of tenants (operators) who have put up their antennae and ot
her active infrastructure on the towers. There are close to 4 lakh telecom tower
s in India currently and that is estimated to increase at a CAGR of 3 percent ov
er next 4-5 years. Standalone data towers are expected to grow with a CAGR of ab
out 125 percent till FY 2020 while other towers are expected to grow with a CAGR
of 1.89 percent over the next 5 years driven by increasing data usage.