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Demand for towers in Colombia remains high

Tower One Wireless Corp. highlighted that more than 1,400 towers are needed per year in Colombia to meet demand.

Mobile Network Operators (MNOs) previously planned to spend approximately $ 8 billion from 2016 to 2020 on capital expenditures, according to the GSMA. Tower One did not specify how long it actually ran.

But there are bases for growth. Colombia has a population of 48 million and a GDP per capita of approximately $ 18,850. In addition, there were 15,553 towers in Colombia as of October 2018 with approximately 3,626 subscribers per cell site, according to TowerXchange.

The main MNOs in Colombia include Avantel, Claro Colombia, Telefónica and Tigo.

Tower One works with the four main operators in Colombia and has Master Leasing Agreements (MLAs) with Telefónica, Claro and Avantel.

In addition, the company has 21 towers with Tigo and is working to implement an MLA.

In addition, Tower One believes other drivers of demand for future cell sites include a pro-infrastructure political climate, carrier LTE deployments and a planned network investment of more than $ 300 million by Tigo.

Tower demand

Tower One is a passive infrastructure owner/operator focused on Colombia and Mexico.

The company focuses on a Build-to-Suit (BTS) strategy for MNOs in the regions in which it operates. BTS means that there is a long-term lease of the site, prior to construction, which generates attractive contractual benefits to investors.

In December 2019, the Colombian government held an auction of the 700MHz spectrum and the MNOs that participated were awarded with more than 3,000 locations that should receive telecommunications services in the next four years.

This commitment is mandatory for mobile network operators and this is the basis, according to Tower One, to firmly believe that the growth of tower companies in Colombia will be constant and robust.

As of February 28, 2021, there were 67 towers of the company under construction, two of which are in Argentina, 62 in Colombia and three in Mexico.

The company’s core business is the leasing of space in communications sites to MNOs in the countries it serves with lease terms of more than 10 years.

Each tower is built with an initial commitment of anchor tenants and space for 1-3 additional tenants or placements.

While the company does not build towers without an anchor tenant in place, it offers tower-related services in the largest Spanish-speaking countries in Latin America: Argentina, Colombia and Mexico.

 

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