Telecom infrastructure - toning up
A look at the asset class from GLIO’s CEO Fraser Hughes
Telecom operators need to develop larger, denser and more efficient networks to better handle the rising demand for mobile services. Their customers continue to gain access to advanced handsets and high bandwidth applications. This has led to a growing number of independent companies owning telecom tower infrastructure, as they can offer shared networks that can cut costs for the large mobile operators.
Typically, operators pay the tower owners rents under long-term, typically non-cancellable, contracts with annual escalators. Owning a mast has become an increasingly attractive investment for private and public investors keen to put capital to work in infrastructure-based assets with consistently compounding cashflows.