The substantial equity stakes retained by MNOs in many of the largest telecom tower companies in China and India means pricing and business models are calibrated to liberally share the efficiencies of infrastructure sharing.
China Tower Company (CTC) has set a pricing scheme that averages around US$325 per month, 30% lower than the ~$500 tenants pay in India. While the cost of materials and labour, and the sheer scale of the Indian and Chinese tower markets, account for some of the difference, tower markets in the rest of the world are calibrated more toward more commercial, value-creation driven objectives, yielding substantial shareholder value and attracting the participation of the private equity and debt markets – in such environments, pricing can be 2-4x the level seen in China and India.
