The Q1 ’21 update of TowerXchange’s guide to the MENA tower market is now available. This 24 page report covers the latest news and market dynamics in 16 European markets, and includes tower counts by country and by company.
Figures included in the report:
Figure 1: Breakdown of ownership of MENA’s 274,469 towers
Figure 2: Tower counts across MENA markets
Figure 3: Footprints of MENA’s major MNOs
Figure 4: Heatmap of tower deals and towerco activity in MENA
Figure 5: Algeria ’ estimated tower count
Figure 6: Egypt ’ estimated tower count
Figure 7: Iran ’ estimated tower count
Figure 8: Iraq ’ estimated tower count
Figure 9: Jordan ’ estimated tower count
Figure 10: Kuwait ’ estimated tower count
Figure 11: Morocco’ estimated tower count
Figure 12: Oman’ estimated tower count
Figure 13: Pakistan ’ estimated tower count
Figure 14: Qatar Mobile Market Share
Figure 15: Saudi Arabia ’ estimated tower count
Figure 16: SIMs per tower in MENA
Figure 17: Tunisia ’ estimated tower count
Figure 18: High telecom service quality in the UAE
Download the report
Foreword
Three years of development has moved 14% of the Middle East and North Africa’s 274,469 telecom towers in to towerco hands. The bulk of MENA’s towers sit with three large MNO-backed towercos: TAWAL, Deodar and Iranian Towers ’ respectively backed by stc in Saudi Arabia, Jazz in Pakistan and MCI/RighTel/Fanasia in Iran.
There is a long-tail of independent towercos now active in MENA, some regional towercos like edotco and IHS Towers have entered the region from the east and west, some towercos have been homegrown like Enfrashare and Associated Technologies Ltd in Pakistan, and some have combined domestic investment with outside investment like Camusat-backed Oman Tower Company.
The region’s 14% towerco share is set to jump to 21% with the planned joint venture in Saudi Arabia between Zain, Mobily, IHS Towers and a local investor. The IHS Towers-backed towerco would boost the region’s maturity and growth.
2020 saw thousands of towers added in several markets, with Pakistan, Egypt and Saudi Arabia all adding seriously to site count. Each country is also likely to see an acceleration in 2021 too, with all of Pakistan’s MNOs turning to towercos for new site build, Egypt cementing a new towerco licencing process and Saudi Arabia pushing forwards with major new infrastructure projects.
Egypt is the next hot ticket in MENA with a new licence expected to be awarded to a towerco in the coming weeks. Helios Towers, IHS Towers, Paradigm Infrastructure and TAWAL are all slated to be the recipient, but whoever takes the licence will be entering a market with a requirement for 1,000s of new sites in old and new urban areas.
Oman was one of MENA’s first towerco markets and continues to be progressive. Oman Tower Company being established a couple of years ago in anticipation of the move to 5G and the award of a third MNO licence. Now 5G roll-out is underway, Vodafone Oman have their licence and Oman Tower Company report over 1,000 sites in the country. Oman Tower Company is also one of three towercos ’ alongside IHS Towers and Helios Towers ’ inline to acquired Omantel’s 4,000 towers, in a rumoured US$500mn transaction.
Towercos have expanded in the region either through MNO carve-outs or through build-to-suit. Besides IHS Towers in Kuwait ’ they have now taken control of 1,020 sites in the country and established a NOC and appointed a local CEO ’ no sale and leasebacks have been completed.
Now Zain have secured a deal with IHS Towers, the expectation is that they will follow in other markets. Rumours have circulated in the past that Tunisie Telecom may consider a sale of their tower portfolio, similarly Djezzy is known to have previously explored a tower divestment and is rumoured to retain the appetite to sell. In Pakistan Jazz retains 13,000 towers in Deodar that should come to market in 2021. Perhaps if Oman gives us the region’s second successful transaction the dam will break.
ESCOs have featured in some MENA markets, but have yet to reach the scale they have in Africa or India.’ In Lebanon, both Alfa and touch have signed ESCO contracts with IPT PowerTech, but in Egypt, both Orange and Etisalat have issued an ESCO RFPs which have since been abandoned. Pakistan is ripe for an ESCO deal given its varied power demands, and Afghanistan’s tricky operational environment may suit an ambitious ESCO. However, the sub-sector lacks the momentum it has in other regions.
The Gulf has long been a destination for dreamers and futurists. Although outside the scope of TowerXchange’s past coverage, megaprojects and smart cities demand significant communications infrastructure during both construction and operation. NEOM in Saudi Arabia is the size of Belgium, with ambitions to turn unpopulated earth into a new Dubai and Abu Dhabi. Egypt’s New Capital City will house millions, and the region is littered in oil and gas megaprojects that require major telecom infrastructure investments and equipment gets smarter. TASC and TAWAL are staking out their stalls as a digital infracos that can support the complex needs of a smart city or megaproject development. Only time will tell on the role of towercos in these vast projects and the potential profits available.
5G is also a reality across the Gulf. Millions of subscribers are served by 1,000 of points of presence that have required small cells, inbuilding solutions and camouflaged alternatives to the macrosites which cannot be built in dense urban areas anymore.
TowerXchange lacks solid data on recovery in Libya, Iraq, Syria and Yemen, but each of these markets now suffers a serious deficit from historic site counts and populations which require coverage. With de-escalations in each country ongoing it can be hoped that network recover will soon be accelerating.
Here TowerXchange examine the dynamics at play in 16 countries across the MENA region, exploring key MNOs and their tower portfolios, the level of infrastructure sharing and presence of towercos, network expansion required and operational challenges present.
Download the report
