Telecom Tower companies to see 5-6 per cent tenancy growth on telco capex, returns to improve: Crisil Ratings
New Delhi, [India] June 17 (ANI): Telecom tower companies are headed for a stronger growth phase over the next two fiscals as renewed capital expenditure by telcos lifts tenancy ratios and improves asset returns, Crisil Ratings said on Wednesday.
“Renewed capex push by select telcos for expansion of the 4G network and 5G rollout is likely to accelerate tenancy growth to 5-6 per cent over this fiscal and next, even though spending by some large telcos remains calibrated,” Crisil said in its report. The ratings agency added that notably, more tenancies on existing sites because of network expansion in overlapping circles will lift the tenancy ratio to 1.46-1.48 times by March 2028.
