For years, Inforient acted as a telecoms solution provider and offered software solutions across Asia to the likes of Smartfren, Telkomsel and ZTE. Back in 2017, the company launched Inforient Infrastructure, a towerco subsidiary that aims to develop a portfolio of 1,000 towers over the next three years.
TowerXchange sat down with Inforient’s Head of Business Development, Jonathan Fernandez, to discuss the company’s expansion strategy and the differentiators of their business model.
TowerXchange: Last year, Inforient launched its own independent tower company. What were the drivers behind the decision?
Jonathan Fernandez, Head of Business Development, Inforient:
For years, we supplied and implemented our E-Sites infrastructure roll out management software to towercos, vendors and operators. We were developing strong infrastructure knowledge and business experience and we realised that many MNOs were shifting from building and owning their own towers to outsourcing and leasing infrastructure from towercos. We had the know-how, the network and great industry connections, so it was a very reasonable business decision for us.
TowerXchange: What assets does Inforient Infrastructure has on the ground now?
Jonathan Fernandez, Head of Business Development, Inforient:
We started our tower business after receiving our licence in Malaysia in mid-2017. To date we have handed over and are leasing more than 50 towers with a pipeline of another 100 on order, going through the various local procedures and construction.
TowerXchange: Could you tell us about your future plans and how are you going to finance your expansion?
Jonathan Fernandez, Head of Business Development, Inforient:
We aim at growing our portfolio to 1,000 towers over the next three years by both building and acquiring infrastructure.
Our software business was equity funded through Redeemable Convertible Preference Shares (RCPS) by two venture capital groups - MavCap Malaysia and Diamond Head Singapore. Our tower unit is partially funded with a similar structure by the same venture capital companies and a small portion of debt.
TowerXchange: What proportion of macro-towers versus micro-cells/small cells is in your future pipeline?
Jonathan Fernandez, Head of Business Development, Inforient:
I would say 30%-70%. We are very much focusing our tower business towards providing the infrastructure for the newer LTE technology (monopoles, BTS hotels, picocells and innovative 5G-suitable infrastructure).
TowerXchange: How is your business model different from other towercos that only provide “steel and grass”?
Jonathan Fernandez, Head of Business Development, Inforient:
We are currently adding power to our portfolio more services in our offer. On the active infrastructure side, we are considering adding in BTS cabinets, front haul fibre and bidirectional antennas. We are also working with a few local councils to develop integrated street light structures for LTE implementation, security surveillance and broadcasting in one dedicated street pole.
TowerXchange: You have some of the biggest Asian operators among your clients on your software business. How is that helping you when developing your infrastructure arm?
Jonathan Fernandez, Head of Business Development, Inforient:
By working with the largest operators, we get insider information on future directions, technologies and ideas that we can then apply to our infrastructure strategy. We get a very precise sense of where the tower business is heading and we can then adapt our services, respond to the market needs and stay ahead of the competition.
TowerXchange: What is your particular procurement strategy and who are the key stakeholders involved in those decisions?
Jonathan Fernandez, Head of Business Development, Inforient:
For site procurement, we have become a registered tower provider to all leading operators across Malaysia and receive our nominal sites directly from our clients. The key stakeholders in these decisions from our end would be our CFO and Head of Site Acquisition. From our client side it would be a combination of their Planning Department and Rollout Department.
TowerXchange: What are your views on the Malaysian market and what will be your role as an upcoming towerco in the next couple of years?
Jonathan Fernandez, Head of Business Development, Inforient:
We have an optimistic view on the Malaysian market and future opportunities. We are positioning ourselves towards becoming a newer generation tower and infrastructure provider for micro/small cell LTE technology.
TowerXchange: When it comes to Inforient’s software business, where are you currently operating and what is your appetite to expand your infrastructure portfolio in Asia?
Jonathan Fernandez, Head of Business Development, Inforient:
For our infrastructure business, we are exclusively operating in Malaysia. Once we achieve sufficient volume, it is our intent to collaborate with other similar sized tower companies in the ASEAN region to go for a regional play.
Our software business is currently active in Indonesia and Malaysia. We have recently appointed a distributor in Thailand and will be expanding into China, Myanmar, Vietnam and the Philippines over the next three years.
TowerXchange: You are one of the three operators that operates its business 100% digitally in Malaysia. What are the main benefits of digitalization? Do you see this becoming a trend in the industry?
Jonathan Fernandez, Head of Business Development, Inforient:
We believe that the industry is heading towards becoming more and more digitalised. The main digitalisation benefit would be efficiency as it allows you to speed your processes and permitting times and it definitely increases your security, which is difficult to guarantee when you are operating with manual spreadsheet.
Additionally, it would reduce the possibility of human errors and make the management of data and documents much easier. Finally, it will drive transparency across the organisation and result in considerable financial savings while also contributing to helping the environment by reducing wastes and paper usage.
