Industry will move towards a uniform pricing model
The two key prevailing pricing models of standard pricing and structured pricing are expected to prevail over the short term. Standard pricing, which is based on standard site configuration, is more preferred by the newer mobile operators since in most cases, they do not have large legacy passive infrastructure already serving the network.

Whereas, structured pricing which offers mobile operators to ‘pick-and choose’ individual components that they wish to share is preferred by incumbent operators who either have legacy passive infrastructure or intend to gain leverage out of cheaper procurement agreements with individual component vendors.

With increasing operator focus to limit itself to managing core competencies by outsourcing non-core support functions to managed providers, adoption of standard pricing as a preferred pricing methodology will increase.

The trend of not renewing volume or rate contracts with individual vendors of passive components has already emerged and this will lead to infrastructure providers becoming a sole source for tower space in the future.

Though a consolidation phase has set-in, entry of new players cannot be ruled out
Over the past few years, the tower market has been consolidating from a market where 25 players two-three years ago to a market where majority of towers are managed by 12 players.

Most of the consolidation was seen by the way of mobile operators exiting their investments in tower entities by selling stakes to independent infrastructure companies in order to sustain capex requirements.

Over the next three years, we believe more consolidation will happen in the independent infrastructure company space with the market ending up with five-seven players per service area.

This however, will not impact any investments from potential new players in the market. We believe that some of the utility companies like Powertel and Railtel will actively evaluate leveraging on their existing real estate in order to provide passive infrastructure to mobile operators especially in areas where existing players currently find it difficult to get required governmental clearances to set up new towers.