LIVE FROM 5G ASIA 2018, SINGAPORE: With 5G networks requiring twice as many cell sites, mobile operators need to explore new ways of managing their vast tower assets to remain profitable, an executive from Axiata Group’s tower business explained.
Gayan Koralage, director of group strategy at edotco (pictured), said operators’ profitability will be seriously challenged as they invest heavily in the new wireless technology. He cited data predicting the industry’s tower count will need to at least double to provide the required base station density for 5G services.
Research by the tower company found Pakistan will need an estimated 68,800 towers by 2027, up from the installed base of 34,300 in 2017. In Myanmar, it predicted the number of sites will need to increase by 2.7 times to 38,500 and offered similar forecasts for six other markets where it operates towers.
Falling ARPU
While data consumption is forecast to increase by as much as seven-times between 2018 and 2022, ARPU is expected to drop 5 per cent over that period, which means new sites installed to boost capacity will have a low incremental return, he said.
Koralage called for a paradigm shift in how sites are managed and suggested tower companies evolve to an infrastructure company model, with a focus on adding local insight.
“A more collaborative approach needs to be adopted to be successful in the 5G era, one that offers predictive analytics such as congestion prediction and location profitability [estimates],” he said.
He also noted it is vital to increase the number of sites connected by fibre. Only about 10 per cent of its towers in Pakistan and Myanmar are connected by fibre, while 30 per cent of those in Malaysia, Sir Lanka and Cambodia have a fibre link.
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