The world's technology industry has undergone major changes in the past 10 years, in terms of the speed of innovation and online interaction driven largely by mobile. From the widespread use of smart devices to the explosion of devices powered by the internet of things (IoT). Mobile applications are increasingly developing, the rise of cloud storage services, people's acceptance of mobile payment has increased exponentially. The income itself and people's education level are increasing, leading to increasingly strict consumer tastes (quality, intelligence, convenience, and modernity), consumption trends are constantly changing, requiring businesses to industry must quickly grasp.
These things have promoted the need to invest in new macro stations, DAS, fixed broadband building, small cell stations (especially small coverage stations interspersed with concave areas), etc. recent years.
The penetration level of the TowerCo business model (measured by the number of towers owned), has increased from 28% in 2011 to 67% in 2018. The scale and potential of TowerCos are also huge: formed over the years. 1990, started in North America, now TowerCo has become an industry with a market size of about 40 billion USD (in 2017), expected to reach 146 billion USD in 2025 with a growth rate of nearly 5 times the growth rate of the telecommunications industry (CAGR (2018–2025) of the TowerCo industry is ~18% compared to the telecommunications sector of 4.5%). Asia is forecasted to be the region with the best growth rate. 40 tỷ USD (năm 2017), dự kiến đạt 146 tỷ USD vào năm 2025 với tốc độ tăng trưởng cao gấp gần 5 lần tốc độ tăng trưởng của ngành viễn thông (CAGR (2018–2025) của ngành TowerCo là ~ 18% so với viễn thông là 4.5%). Châu Á được dự báo là khu vực có tốc độ tăng trưởng tốt nhất.
Source: Mordor Intelligence
This opens up many new opportunities for Viettel Construction in taking advantage of its human resources and experience to increase its independent operations, becoming the No. 1 TowerCo in Vietnam, investing in leasing BTS stations, DAS systems, etc. energy…
Potential market and opportunities to explore Viettel Construction
TowerCo Vietnam market is a potential market when both the tenancy ratio (rent rate), the current station rental rate as well as the tenancy ratio to make a profit are all low compared to the world and the region (tenancy ratio to have a profit). world profit is 1.6-2x).
For Independent TowerCos, consolidation is underway in Vietnam to improve the tenancy ratio and drive growth.
The tower rental fee and the tenancy ratio for profit are currently low compared to the region and the world:
- The tenancy ratio of the Vietnam market is currently around 1.2-1.3x, quite low compared to other countries in the region as well as in the world: in the US: 2.5; China: 1.48; India: 2.1; Myanmar: 1.6; Indonesia: 1.8. Mỹ: 2,5; Trung Quốc: 1,48; Ấn Độ: 2,1; Myanmar: 1,6; Indonesia: 1,8.
- Tower rental fee: 300 USD/tower/month, much lower than other countries in ASEAN; Myanmar: 900 USD/tower/month; Indonesia: 1,150 USD/tower/month; Malaysia: $1,250/tower/month. Mynamar: 900 USD/ tower/ tháng; Indonesia: 1.150 USD/ tower/ tháng; Malaysia: $1,250/tower/month.
Currently, Viettel Construction is promoting investment in rental infrastructure, aiming to become the No. 1 TowerCo in Vietnam. By the end of July 2021, Viettel Construction has owned 1,360 BTS stations, 2,600 km of fiber optic cable, 4 underground sewer lines, building mobile coverage with 3 million m2 and 47 solar energy systems with a capacity of 17, 7 MWp.
Although newly deployed, the revenue of this segment in 2020 reached more than 65 billion VND, 7.6 times higher than the previous year. After the first 6 months of 2021, this segment's revenue recorded a sudden growth of 516% over the same period, reaching VND 91.2 billion, thereby completing 45.6% of the whole year plan.
Information:
Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/telecom-towers-market
Network World: https://www.networkworld.com/article/2179278/10-technologies-that-will-change-the-world-in-the-next-10-years.html