TowerCos
TowerCos can help consumers save up to $67 billion: Study
Tower Companies (TowerCos) can help mobile network operators (MNOs) save up to $10 billion through infrastructure sharing and result in cumulative savings of up to $67 billion for consumers due to affordable 5G connectivity by 2025, according to a study.
Edotco Group, an integrated telecommunications infrastructure services company in Asia, launched the study "Towering Above: Building Tomorrow's Digital Infrastructure in Asia" in collaboration with Roland Berger.
The report, launched during a panel discussion featuring edotco, Roland Berger and the International Finance Corporation, explores the critical roles and potential impact of TowerCos across nine key Asian markets – Malaysia, Indonesia, Thailand, Bangladesh, Pakistan, the Philippines, Myanmar, Cambodia and Sri Lanka.
It shows how TowerCos are stimulating sustainable digital connectivity to realise incremental socio-economic benefits for industries, societies and governments, in addition to assessing how key policies and regulatory reform recommendations can unlock such opportunities.
According to the report, digital infrastructure is becoming a critical digital economy enabler, with 5G expected to transform the industry.
TowerCos are now transforming their roles to become digital infrastructure providers, in addition to working closely with industry stakeholders to undertake deeper forms of active infrastructure sharing.
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Not only are these services critical to stimulate development during the aftermath of the Covid-19 pandemic, but such partnerships are also crucial for preparing economies for the 5G era – an age that will further revolutionise network usage and unlock new opportunities while easing the MNOs' investment and deployment challenges.
"While MNOs are rapidly expanding their network in low average revenue per user (ARPU) markets such as Asia, they face a significant challenge in keeping their cost per GB under control while striving to meet the industry demands and adhering to regulators' intended policy and regulatory outcomes. These can only be addressed sustainably through a higher degree of infrastructure sharing," Gayan Koralage, director of group strategy at edotco Group, said.
Although Southeast Asia and South Asia are among the fastest-growing sub-regions in terms of average data usage per user, MNOs have not been able to capitalise on the traffic trend here.
This is causing the continuous decline in ARPU, making it challenging for MNOs to generate returns that are commensurate with their cost of capital, according to the report.
The study notes that leading TowerCos are poised to assist MNOs by moving up the value chain. Namely, this is by offering innovative 5G-enabled solutions such as OpenRAN, Network-as-a-Service solutions and Edge Computing to help MNOs achieve greater cost and network efficiency.
Forward-looking regulatory reforms and policy changes are needed for TowerCos to realise their potential in the next normal, it says. "These include providing incentives and introducing a more conducive regulatory framework for TowerCos to explore more innovative partnerships and services."
2 years ago