Potential New Entrants:
In our assessment we found that new licensees are indeed serious about network roll-out, but a few may turn out to be spectrum traders. New entrants estimate that they could need ~US$4bn for a nation-wide GSM rollout even after allowing for tower-sharing. Companies are yet to buildup their management teams for large scale rollout, & funding plans are still being worked upon. Also, pending resolution of ongoing litigation in the sector, equipment vendors may be uncomfortable about committing resources to new entrants.
For the time being, bargaining power on tower-sharing appears to rest with tenants & rental rates continue to fall. Despite deeper coverage, operator-led tower companies like Indus [airtel, Vodafone and Idea’s venture] will likely find it challenging to improve overall tenancy due to perception issues on neutrality, and execution bottlenecks in terms of siteavailability & site-suitability.