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New opportunities for TowerCos in 2023

Thu 16 Mar 2023

Only a few industries have seen the same high level of consolidation as TowerCos have experienced in recent years.

However, TowerCos, or tower companies, are expected to soon see potential acquisition targets reduce in number, with industry leaders turning to new avenues for future growth.

While TowerCos have traditionally been managers of passive assets and infrastructure, there are countless new opportunities in 2023 where these firms can expand into more active assets, in particular the management of active radio access network equipment.

Shifting towards becoming an enabler for the entire telecoms sector, TowerCos are able to leverage their strong position and capitalise on their experience to transform the entire ecosystem when it comes to connectivity.

New opportunities for TowerCos

Only time will tell which TowerCos will take hold of this opportunity and transition to become a more active player in the telecoms space. But it is no longer enough for TowerCos to continue to offer the same services they have in the past, with value-added services becoming an essential part of their offering in the coming years.

Some leading TowerCos have started this journey towards innovative activities over the past five years. An example of the importance of collaboration and innovation in the space is the partnership between Vantage Towers and telecoms provider, Sigfox Germany in 2021.

With Sigfox Germany bringing out a new IoT service at the time, Vantage Towers were able to gain a new tenant, as well as creating another opportunity for new services to be provided for a smart city ecosystem.

If these type of partnerships continue to be formed, TowerCos could be an enabler for digital services in the same way as they currently are for telecom firms.

On the other hand, Alessandro Ravagnolo, a Partner at Analysys Mason, suggested that TowerCos should not lose sight of their core business: “The demand for traditional network deployment continues to be significant. The amount of network spending that can be addressed using a traditional towerco model is not expected to fade.”

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telco telecoms towerco towercos
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