Broadcasting And Mobile Towers - Analysys Mason

Supply of towersComplexities of negotiating with competitorsencourage the use of TowerCo servicesDriverNegotiationcomplexitiesw/competitorsEffect onuse of towercompaniesRationale• Factors such as level of sharing and structure of JV/site swapcomplicate the operator site-sharing model.JV/site swaps tend to be more adversarial in terms ofnegotiation, potentially at greater risk of failure17ContractualagreementTime to marketAssetownership• Tower company contracts provide cost certainty, allowingoperators to forecast costs more accurately. They imply lowercapex but higher opex than site-sharing JV/site-swap betweenoperators• MNOs are able to offer services sooner which is particularlyrelevant for new entrants. It also allows them to meetregulatory coverage requirements faster• A site-sharing JV provides operators with greater control oftheir assets21454-482