Spin-offs and sales: tower developments are reaching new heights

An increasing number of mobile operators are offloading or restructuring tower assets, typically to raise cash, pay down debt or finance investment programmes. The network model for operators is shifting away from traditional sole ownership (i.e. vertical integration) towards shared and/or leased access. This will result in a more diverse telecoms network landscape in the future, with full stack, hybrid wholesale/retail and 5G private networks all in play. Independent tower companies have been the main acquirers of operator sites, utilising multi-tenancy on passive infrastructure as the overall driver of profitability. Regulators, meanwhile, will be alive to the possibility that continued deal-making could lead to a concentration of a substantial portfolio of assets in a small number of hands.