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Emergence of Opportunities for Third-party Entities Revives Growth of Europe Wireless Tower Market

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Published on : May 08, 2017

Albany, New York, May 08, 2017: The 39-page report offers significant insights into the key factors restricting and promoting the growth of the wireless tower market in Europe. The recent developments, supply and demand dynamics, value chain analysis, and market shares of the leading companies have also been discussed in the report. 

With large-scale technological advancements in the field of communication, the wireless tower industry is expected to register considerable growth over the forthcoming years. Higher penetration of mobile phones and smartphones, escalating adoption of the Internet, and growing demand for high-speed Internet are some of the prominent growth drivers of the wireless tower market in Europe. By country, Italy, the U.K., and Romania are some of the key segments covered in the report. 

Mobile network operators (MNOs) have been investing heavily in the construction of wireless towers, boosting the communication infrastructure. This has, however, created high financial burdens for the leading market players. In an attempt to decrease their debts and capex, MNOs are opting for divestments in their tower infrastructure. These network operators are also facing the challenge of increasing pressures to invest in network quality. All this has created a key opportunity for the emergence of third-party tower companies over recent times. 

During 2015-2016, Telecom Italia introduced an initial public offering of its Inwit wireless towers business. Whereas, VimpelCom managed to sell at least 7,000 towers in Italy. Spain’s Telefónica has been separating its mobile towers to build an infrastructural business. The company is looking to enhance the services it offers to other operators for leveling up its additional income, apart from its plans to incorporate third-party assets. One can observe similar deals being signed in the U.K. U.K.-based telecom towers company Wireless Infrastructure Group is planning to invest £1bn in building and infrastructure over the next three years.

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Furthermore, an expanding LTE subscriber base as well as increasing espousal of applications that are driven by mobile video traffic on LTE-enabled smartphones are fuelling the market for wireless towers across this continent. This has also resulted in growing pressure on providers to augment the number of wireless tower sites. 

Until recently, mobile network operators (MNOs) were the sole owners and managers of the larger bulk of wireless mobile towers. However, this scenario is undergoing rapid transformation as the divestments by these operators have been augmenting. Numerous operators have been adopting two strategies to ensure their foothold in the rapidly consolidating market. These are selling off their tower infrastructure to independent towercos and creation of independent entities for managing tower infrastructure. 

Bouygues, Deutsche Telekom, FPS Towers, Omega Towers, Arqiva, Deutsche Funkturm, Telefonica, Wind, INWIT, Hutchison, SFR, Orange, T-Mobile, TDS, Vodafone, Cellnex, Telxius, and Wireless Infrastructure Group are some of the leading companies operating in the European market for wireless towers. 

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