An Overview of Tower Industry in Latin America

Today, Latin America’s communications market and its mobile service sector in particular, is recognized globally as one of the highest-potential growth markets. Alongside Asia-Pacific, Latin America is expected to lead the global expansion in communication services over the next few years. A combination of economic growth, rising consumer demand and regulatory changes should continue to foster competitive dynamics and the growth of usage and revenues.

During 2013-2014, the tower industry in Latin American industry has shown a tremendous growth. This growth in the tower industry is due to expansion of 3G/4G network in the region. Below is the graph which shows the increase in penetration of 3G/4G network in last few years and expected growth in upcoming years in different Latin American countries.

Among all the countries, Brazil has the best growth rate among all Latin American countries. Due to Football World Cup and Summer Olympics scheduled in Brazil and making better connectivity available, The tower industry in the country have shown a tremendous growth. Growth in the Argentina tower industry for the last few years shows no convincing figures. This is due to the uncertain regulatory environment and ongoing macroeconomic problems including currency devaluation and high levels of inflation have conspired to keep third-party towercos out of Argentina, in favour of lower risk markets. Rest of the Latin American have shown decent numbers when it comes to tower industry business.

Here is a snapshot of major telecom companies operating in Latin America, hold their business in which countries. Major companies which operate in the region are AMT, Andinas, Continental, Innovattel, QMC, SBA, Torrecom, Torres Unidas, Phoenix Tower Int. and Centennial. Among all the companies, AMT has the largest share in the market.

American Towers has the largest share with a dominant position in the market. Second is the position of SBA Communications, with number of towers that are slightly more than number of towers that American Towers solely own in Brazil. Grupo Torresur and BR Towers, has significant number of towers as compared to leaders in the market. Some of the other companies also operate in the region but are in marginal position when they are matched with American Towers.

Latin America is one of the most promising regions for tower companies and various companies across the globe are trying to grab some opportunity over there. In 2015, there will be consolidation phase in Brazil tower industry whereas restructuring will take place in Mexico. A reasonable amount of growth will take place in Peru and Central America. A regulatory turmoil is also believed to happen in Chile. This is a forecast which is predicted by one of the leading tower companies organization for Latin America.

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