For Bharti Infratel, Apart from the domestic organic growth, other growth opportunities management may consider: 1) acquiring operator owned towers in India (14-15k towers) if they become available and pricing/dynamics are favourable; 2) towers in Bangladesh subject to regulatory approval; and 3) reviewing new segments like Wi-fi, DAS, and fibre. Key things it would focus for M&A: quality of customers and growth potential on the sites.
Tower industry due to its infrastructure status has a much more congenial regulatory environment. Towercos needs just one nationwide license. Other approvals that towercos need include from municipal authorities and also pollution certificates, which can be challenging at times.
Tower Rentals
On rentals, per tower rentals are: INR35.7k for the first tenant, INR32k for the second one and INR30k for the third. Margin at the first tenant is greater than or equal to 45%, then 60-65% at second tenant, and 70-75% at third. On land lease rents, for increases beyond a certain threshold, towercos are able to pass the increase to the telcos.
Reducing dependence on generator sets depends on availability of the power grid supply. Indus has been able to do so to a higher degree than Infratel Standalone as Indus has a bigger presence in metros and A circles, which get a better power grid supply. At the consolidated level, BHIN has 2,700 solar powered towers.
