infrastructure sharing: unlocking a billion dollar industry
TRANSCRIPT
Infrastructure Sharing: Unlocking a Billion Infrastructure Sharing: Unlocking a Billion Dollar IndustryDollar Industry
Iyembi Nkanza, Research Analyst
ICT
September 21, 2011September 21, 2011
What I bring to the Team
• Strong research and analytical skills
• Financial expertise
• Strong client communication focus
• A drive to meet work targets and work as a motivated team member
Education
Today’s Presenter: Iyembi Nkanza
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Education
• Bcom Law and Economics from University of Cape Town, Cape Town, South Africa
• BcomHons. Financial Analysis and Portfolio Management from University of Cape Town, Cape Town, South Africa
Iyembi NkanzaResearch Analyst
Frost &SullivanEurope, the Middle East and AfricaCape Town, South Africa
Agenda
• Overview
– What is infrastructure sharing?
– Worldwide impact/growth
– Who are the players in the market?
• Poll Question
• Focus on Sub Saharan Africa
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• Focus on Sub Saharan Africa
– Market highlights?
– What are the drivers / restraints?
• Poll Question
• Quantitative & qualitative analysis
– What do stakeholders stand to gain?
• Conclusion / Key take away
Overview
What is infrastructure sharing?
What is infrastructure sharing?
Infrastructure Sharing: Sharing illustration, 2011
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Source: Frost & Sullivan
Overview
Worldwide impact/growth
Infrastructure sharing has been established in developed and emerging markets
Infrastructure Sharing: Estimated Value per tower of the Largest Tower Companies (World), 2010
United StatesTowerCo: $451,000Suncom: $261,000Clearshot: $566,000Trinstel: $310,000
IndiaWireless TT: $200,000Bharti: $242,000Spice: $144,000Reliance: $281,000
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EuropeEircom: $638,000Airwave: $688,000
Source: Frost & Sullivan
Overview
Who are the players in the market?
There are 3 main groups of stakeholders
Regulator
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Source: Frost and Sullivan
Mobile Service ProviderTower Company
Focus on Sub Saharan Africa
Market highlights?
South Africa, Kenya and Ghana are at the forefront of the trend
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`̀
Source: Frost and Sullivan
MTN Ghana sold it’s towers
to ATC
Safaricom and Telkom Kenya signed a tower sharing deal
Cell C deal to sell towers to
ATC
Focus on Sub Saharan Africa
What are the drivers & restraints?
Major Drivers & Restraints
Infrastructure Sharing: Drivers and Restraints (Sub-Saharan Africa), 2011 - 2017
CAPEX savings
Network coverage expansion
Conducive regulatory
environment
Reduced environmental impact
Driv
ers
Driv
ers
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Service providers’ reluctance to change
business model
Perceived loss of strategic control
Lack of regulatory guidance
Source: Frost & SullivanDenotes Long term Impact
Denotes medium term Impact
Denotes Current Impact
Re
stra
ints
Re
stra
ints
Quantitative and qualitative analysis
What do stakeholders stand to gain?
150.00
200.00
250.00
Quantitative Analysis of potential benefits to telecommunication service providers
Potential
Saving
$2.2bn
Infrastructure Sharing: Tower sharing comparative analysis (SSA), 2011
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0.00
50.00
100.00
150.00
1 2 3 4 5 6 7 8 9 10
With Sharing
Without Sharing
CAPEX/OPEX(R millions)
Years
All figures taken from averages given by service providers and tower companies
Source: Frost & Sullivan
Conclusions / Key Take Away
Cash Savings will Allow Mobile Operators to Invest in Other Projects
•Cash Flow
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Source: Frost & Sullivan
•Expansion into Rural Areas
New product offerings will increase competition within markets
•Developing Backhaul Infrastructure
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Source: Frost & Sullivan
•Focus on Product Offering
Consumers will Ultimately Avail the Benefits
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Source: Frost & Sullivan
Next Steps
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For Additional Information
Birgitta Cederstrom
Business Unit Leader
ICT
(+27) 21 680 3263
Samantha James
Corporate Communications
Industry
(021) 680-3566
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Yves Mongoho
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Africa
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Merwin Grootboom
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South Africa
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