Streaming issues? Report here
volume_up
volume_mute

Home
arrow_forward
Business

Mobile Network Operators increasingly don't own towers and other infrastructure

28 June 2019 10:23 AM
Tags:
Infrastructure
Mobile
Absa
Mobile network operator
fourth industrial revolution
digitisation
4th industrial revolution
Absa Corporate and Investment Banking
mobile network operators
mno
mnos
absa corporate and investment bank
over-the-top
ott
towers
Premeshin Naidoo
Bora Varliyagci
DigitalThings
Juanita Clark
FTTX Council Africa
4ir
Outsourcing the capital expenditure intensive part of their businesses allows them to be competitive in services.

Absa Insights is a portal where the bank’s sector experts share essential learnings and new developments with its clients and other businesses. The world is changing; so in 2019 Absa has introduced a series of events featuring high-level thinking around Consumer Goods and Services, Agriculture, Telecommunications, Mining and Energy and Infrastructure. Bookmark Absa Insights, where the bank shares insights from discussions designed to help you navigate the ever-shifting trends that are shaping the economy.

Listen to the audio below (or scroll down for a summary of it).

Mobile network operators (MNOs) have all but lost traditional revenue streams such as voice and SMS.

Data consumption is exploding, but wildly popular over-the-top (OTT) services such as WhatsApp, Skype, Netflix and thousands of others are threatening to turn MNOs into mere utility-type businesses.

To make matters worse; companies have to invest massive amounts in new infrastructure continuously.

Telco operators are changing their business models

From being capital intensive, infrastructure-heavy businesses they seem to grow in focus to more service-type businesses...

Premeshin Naidoo, Absa Corporate and Investment Bank

Traditional revenues have eroded heavily through OTTs. They are trying to find new revenue sources through digital services... focusing on IT and cloud offerings... video, music and entertainment type services... Mobile money and digital finance and insurance type of offerings...

Bora Varliyagci, CEO - DigitalThings

Fixed line infrastructure providers are building towers... considering themselves as turnkey infrastructure providers... making substantial investments...

Juanita Clark, CEO - FTTX Council Africa

For MNOs to provide services requires expensive infrastructure, increasingly supplied by independent infrastructure owners and operators.

These independent operator-owners then leverage the economy of scale of serving multiple MNOs to bring the cost of capital investment down.

In 2009, almost none of the towers [in Africa] were managed by tower companies. Today, more than 60% of towers on the Continent is operated by tower companies...

Bora Varliyagci, CEO - DigitalThings

Outsourcing the capital expenditure intensive part of the business allows it to be competitive in services

As services and infrastructure become segregated, infrastructure players are consolidating assets between different owners to bring down costs further.

Two types of telecommunication providers are emerging:

  • The asset/infrastructure owners (fixed lines, towers, data centres, etc.)

  • MNOs (providing the applications and services to consumers and businesses)

For more detail, watch the video below. Premeshin Naidoo (Absa Corporate and Investment Banking) in discussion with Bora Varliyagci (CEO, DigitalThings) and Juanita Clark (CEO of FTTX Council Africa) on the evolution that the Fourth Industrial Revolution will bring and opportunities around digitisation.

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : Mobile Network Operators increasingly don't own towers and other infrastructure


28 June 2019 10:23 AM
Tags:
Infrastructure
Mobile
Absa
Mobile network operator
fourth industrial revolution
digitisation
4th industrial revolution
Absa Corporate and Investment Banking
mobile network operators
mno
mnos
absa corporate and investment bank
over-the-top
ott
towers
Premeshin Naidoo
Bora Varliyagci
DigitalThings
Juanita Clark
FTTX Council Africa
4ir

More from Telecoms, media and technology

binaryjpg

Digitisation of everything: it's a brave new world with infinite promise

21 June 2019 4:38 PM

You can't run, and you can't hide from everything digitising. But why would you want to? The future looks bright and inclusive!

Share this:
Read More arrow_forward

capturejpg

How Mobile Network Operators are evolving and investing to service everyone

21 June 2019 4:38 PM

New technologies and subsidisation may offer solutions to the challenge of providing affordable access to everybody.

Share this:
Read More arrow_forward

The promise and peril of upcoming telco regulations in South Africa

21 June 2019 4:37 PM

By the time regulators tackle a problem, it has become a problem of yesterday. Nevertheless, try they must.

Share this:
Read More arrow_forward