After proving itself as one of the main tower manufacturers and providers in Argentina, LOTOI has opened a new production plant in Paraguay, which will allow the company to export its structures to other regional markets such as Peru and Chile among others. TowerXchange talked with the company’s Vice President, Ariel Semeraro, to find out more about their plans and discuss the evolution of site typology demand.
TowerXchange: Please introduce LOTOI to our readers
Ariel Semeraro, Vice President, LOTOI:
We are an engineering and construction firm that manufactures metal structures for different industries including telecom. LOTOI’s adds Transphina’s expertise, our sister company, which has been serving the tower industry for years by installing structures and their necessary equipment.
During 2018, we saw an increasing demand for tailored site solutions so we decided to make a considerable investment in the necessary technology and equipment to provide personalised solutions to our clients.
TowerXchange: In such a competitive market, how do you differentiate yourself from other tower manufacturers? What advantages do you offer to towercos and operators?
Ariel Semeraro, Vice President, LOTOI:
We integrate the engineering process in the construction of structures and deliver a product of excellent quality at highly competitive prices. Contrarily to other manufacturers who offer standardised tower models, we sit down with our clients and produce tailored structures for their specific needs.
In addition, we offer the shortest delivery times to guarantee a fast and efficient deployment, while ensuring flexibility to meet our clients’ demands.
TowerXchange: You have recently opened a new factory in Paraguay. Where do you see the main opportunities for expansion across Latin America?
Ariel Semeraro, Vice President, LOTOI:
We started in Argentina, where we currently provide around 200 tons per month. Indeed, we have recently opened a new production plant in Paraguay, which includes the hot-dip galvanizing service and allows us to offer our structures across the whole region with a monthly production of 1,000 tons. We see plenty of potential and demand from Argentina and Paraguay but we also aim to expand across other regional markets as the industry is growing.
Many towercos that we were working with in Argentina launched their services in Paraguay, and they started demanding new structures for the operations there, so we were “dragged” to this great opportunity. Moreover, Paraguay’s tax regime eases our export to other markets such as Ecuador, Bolivia, Peru and Chile, which we couldn’t have attended from Argentina as the export fees are too high to be competitive against other regional providers.
TowerXchange: How has site demand evolved and what are your expectations for the future?
Ariel Semeraro, Vice President, LOTOI:
2019 started very well for us if you take into consideration the complex economic situation in Argentina. The market was stable during the first quarter and it is now steadily growing. Paraguay’s telecom market is very established and there is also a big demand for electricity infrastructure.
TowerXchange: How is the industry evolving in terms of typologies and new sites?
Ariel Semeraro, Vice President, LOTOI:
We always work alongside towercos and operators in order to provide the best solution for each site. Demand for traditional, high macro sites has dramatically decreased and the market now mostly demands sites of between 24 and 36 meters. All the players are now shifting towards smaller sites and monopoles and they do not want to deploy as many traditional macro towers.
Ironically, many clients request “towers that don’t look like towers” which is obviously very tough to produce. However, we are investing and focusing our resources towards that goal, as reducing the visual impact of the sites is crucial for boosting social license to deploy across Latin America.
TowerXchange: Argentina is one of the markets with the biggest potential in Latin America. What is stopping its development and what are the main challenges that you face?
Ariel Semeraro, Vice President, LOTOI:
The main issue that the industry faces here is the social opposition and the strong power of municipalities, which is slowing and sometimes even stopping deployment.
We are working very closely with towercos and MNOs, visiting different municipalities and educating the population on the benefits of telecom infrastructure. It is important to clarify certain misconceptions and avoid any future issues before you start the deployment process.
