Deloitte Maverick: A Study

and Analysis of the US

Telco Case
Team: Ramanujans Mowglis

Growth Avenues

The growth revenue aspects for US Telco can be differentiated in two different areas: a) In developing markets like India, Nigeria etc. b) In
developed countries like US, UK etc.

a)

Developing markets:
There is a big boom as far consumption of data is concerned in developing countries. With 3G and 4G services coming in force and
expanding at a very high rate, the requirement for telecom operators to provide services in wide areas is increasing. The telecom operators
in these countries do not want to build and operate telecom towers as they require huge capital expenditure which they think would be more
profitable to invest in expending the range and quality of their services. So investing in these countries to acquire or build towers with multi
tenancy offerings is a big possibility to generate revenues and profit.

b)

Developed markets:
In developed markets the focus is more on innovation, new technologies and the efficient use of these technologies. Also as new services
based on technologies such as wifi, optical fiber, lifi etc. start gaining popularity, the dependability on the normal telecom towers is only going
to decrease. In such circumstances, it makes more sense to invest in equipment and infrastructure that can be leveraged by these emerging
technologies.
Also important for these telecom towers are the increasing concerns in developed countries over the pollution done by these operational cell
tower. It has also become important to invest in technologies that would encourage the green initiative which is eventually beneficial for the
telecom operators. The running cost of the cell towers are directly forwarded to the telecom operators and any initiatives which decreases
this cost is going to be encouraged by them. (e.g: solar powered towers, wind powered etc.)

c)

Common Measures:
Proper asset utilization is also one important aspect to increase revenues. The real estate at these tower locations can be used for new
business opportunities. The space can be rented for ATMs, internet kiosks etc. as the other infrastructure needed for these is already
present: Security, power, air conditioning etc.
One more missed opportunity for the tower companies is to cash in on any new technologies the telecom companies are bringing in. A
company who gives 3G services and leases your tower and when later brings in 4G services also should pay the tower companies(US Telco
in our case)