Thanks to the long-term and stable business model, the telecom tower sector has witnessed steady growth despite the challenges faced by the telecom industry. We expect that with increased clarity for telecom operators, the network investment cycle will get enhanced in 2013-14 and beyond. We are already witnessing early signs of the same. The near-term momentum in the Indian tower industry is undeniable, and we believe there is still meaningful upside for tower operators given the economically compelling sector fundamentals.
Historically, voice has been the prime driving factor for telecom operators' growth. With business dynamics changing, voice is not going to be the lone growth vector since India is at the cusp of mobile data revolution. It could potentially surprise positively in the coming years.
Some of the key catalysts that shall drive the data growth would be the size of India's young population, increasing availability of affordable smart handsets, tablets and pads along with the relevant content it would offer.
However, there would be continued circlespecific voice growth in rural areas and infill in urban areas. As data will be the prime driving factor for urban areas, large growth will be via wireless networks, for which coverage is essential. Therefore, integrated solutions shall play a pivotal role in urban areas.
Reports indicate that wireless network data traffic to grow another ten times over the next five years with about 75 per cent of this growth expected to be delivered over traditional macro sites, primarily towers. Inbuilding solutions (IBS), distributed antennae systems (DAS) and other small cell installations are projected to support the remaining 25 per cent. Therefore, Viom Networks as an innovative telecom infrastructure solution provider is well positioned to take advantage of both the market opportunities in form of macro (towers) and micro (IBS and DAS) site network infrastructure.
Some of the key emerging trends in the telecom infrastructure domain include increasing focus on alternative energy solution deployment particularly in rural areas.
Syed Safawi is CEO Viom Networks