TowerXchange’s analysis of the global and European tower markets today and tomorrow

Kieron Osmotherly, Founder and CEO, TowerXchangeFrances Rose, Head of Europe, TowerXchange

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The new market structure in which towercos own 67.4% of towers

TowerXchange is tracking 279 towercos that now own 2.966mn of the world’s 4.4mn towers

China Tower Corporation*1,900,000

29 other towercos with 5,000-20,000 towers286,590

235+** other towercos with

Towerco penetration and business models in different regions

Global

52.6%

13.5%1.3%

32.6%

Operator-led towerco Pureplay independent towerco Joint venture infraco MNO-captive sites

China

India

CALA Oceania

S & SE Asia(Exc India)

Europe

N & E Asia(exc China)

97.3% 2.7%

15.4%

15.5%

9.6%

59.6%46.6%

21.8%

31.5%

14.7%66.1%

19.2%100%

11%

36.1%48.2%

13%

87%

USA & Canada

7%

66%

27%

15.6%

SSAMENA99.5%

0.01%0.04%

4.6%59.2%

36.2%

Operator-led towerco Pureplay independent towerco Joint venture infraco MNO-captive sites

China

India

CALA Oceania

S & SE Asia(Exc India)

Europe

N & E Asia(exc China)

97.3% 2.7%

19%

10%

40%47%

22%

32%

20%66%

14%

100%

11%

40%49%

8%

92%

USA & Canada

7%

66%

27%11%

SSAMENA99.99%

0.01%0.2%

61%

39%

Tower industry 1.0: Vertical real estate

Tower cash flowTowers

Rooftops

Passive infrastructure

Power-as-a-service

Amendments

Escalators

Accelerated rollouts

Build-to-suitTenancy ratio growth

Long-term contracts

Operational excellence

Real estate

Operational excellence

Monetise assets

Service Level Agreements

Master Lease Agreements

Credit worthy tenants Sale and leaseback

Credit worthy tenants

Sale and leaseback

REITs

Valuation

Improvement capex

Site level profitability

Permitting

Zoning

Pass-through

Anchor tenants

DAS

The Future Network: new business models for geographic coverage and urban capacity

An era when networks are dynamically, remotely configurable, rather than optimised by site visits and new equipment overlays

InnovationFixed / mobile convergence

In Building Solutions

MESH networks

Small cells

Airborne connectivity

Virtualisation

Software Defined Networks

Self Optimising NetworksSingle platform

IoT

Industry verticals

OrchestrationEdge data centres

End to end network slicing

C-RAN

Multi-host

Smart poles

Fronthaul

Massive MIMO

Multi-band antennas5G rollout

Self-deployVR and AR

Street furniture

Neutral host

Street furniturePublic safety networks

NFV

Multi-operator

The structure of the European tower industry today

Deutsche Funkturm34,700

Cellnex27,044

First Tower Company15,500

CTIL12,000

40 towercos with

SLB in Europe

Year Country Seller Buyer Tower count Deal value € Cost per tower € Deal structure

2017 Italy Wind (Veon) Cellnex * 77,000,000 104,054 SLB 10% stake out

2017 Spain MasMovil Cellnex 551 40,000,000 72,595 SLB

2017 Switzerland Sunrise Cellnex, Swiss Life and DTCP 2,339 430,000,000 183,839 SLB

2017 France Bouygues Cellnex 3,000 854,000,000 284,666 SLB

2017 France Bouygues Cellnex 600 170,000,000 283,333 SLB

2016 France Bouygues Telecom Cellnex 230 80,000,000 347,826 SLB2016 France Bouygues Telecom Cellnex 270 67,000,000 248,148 SLB

2016 Ukraine Lifecell UkrTower 811 47,820,000 58,964 SLB

2015 Italy Wind (Veon) Cellnex 7,377 693,000,000 94,892 SLB with 10% equity

2014 Spain Telefonica/Yoigo Cellnex 4,277 385,000,000 90,016 SLB

2012 France Bouygues Telecom FPS Towers 2,166 185,000,000 100,400 SLB with 15% equity

2012 Germany KPN American Tower 2,031 393,000,000 193,501 SLB

2012 Netherlands KPN Protelindo 261 75,000,000 287,356 SLB

2012 Netherlands KPN Shere Group 460 115,000,000 250,000 SLB2012 Spain Telefonica Cellnex 500 45,000,000 90,000 SLB

2010 Netherlands KPN Open Tower Company 500 SLB

2008 Netherlands KPN Open Tower Company 101 SLB

Totals / average 25,474 3,656,820,000 147,019

Cellnex presence in Europe

588 Sites

796 Sites

5,400 Sites c.2,839 Sites

9,411 Sites8,133 Sites

Europe123456

13,000Russian Towers, Vertical

and Service Telecom

3,000

3,000

3,500Logycom

2,200

7400UkrTOWER

5,300Cellnex, TDF and American Tower

1,6003,000

3,000

2,000

1,800TT Networks

Hotspots for future SLB activity

Processes cancelled

SLB completed

Processes believed to be underway

Europe

103,206 European towers carved out by MNOs

365,424

72,770

58,600

103,206

Operator-led towerco Pureplay independent towerco Joint venture infraco MNO-captive sites

China

India

CALA Oceania

S & SE Asia(Exc India)

Europe

N & E Asia(exc China)

97.3% 2.7%

19%

10%

40%47%

22%

32%

20%66%

14%

100%

11%

40%49%

8%

92%

USA & Canada

7%

66%

27%11%

SSAMENA99.99%

0.01%0.2%

61%

39%

CETIN

< O2 Czech Republic achieved 126% increase in valuation by spinning

off infraco CETIN

< All infrastructure assets, fixed, mobile, 6,000 sites, 38,000km of fibre

< Freeing O2 management to focus on core business

Tower consolidation

Year Country Seller Buyer Tower count Deal value € Cost per tower € Deal structure

2018 Finland Digita Digital Colony 556 Company acquisition

2017 Netherlands Mom and Pop Cellnex 32 12,000,000 375,000 Company acquisition

2017 Russia Link Development Service Telecom 400 Company acquisition

2017 Netherlands Alticom Cellnex 30 133,000,000 443,333 Company acquisition

2016 France ITAS TIM TDF 420 Company acquisition

2016 Germany WDR American Tower Portfolio acquisition

2016 France Antin/FPS American Tower 2,482 697,000,000 280,821 Company acquisition

2016 UK & Netherlands Shere Group Cellnex 1,004 393,000,000 391,434 Company acquisition

2016 Netherlands Protelindo Cellnex 261 109,000,000 417,624 Company acquisition

2015 Ireland Coillte Cignal 113 Portfolio acquisition

2015 Italy Tecnorad EI Towers 134 17,000,000 126,866 Portfolio acquisition

2015 Italy TowerCo Cellnex 212 94,600,000 446,226 Company acquisition

Totals / average 5,604 1,455,600,000 322,392

Europe heatmap

123456

Europe heatmap

123456

Europe tower counts by country

Source: TowerXchange

Russia60,850

Germany70,136

Spain49,000

France47,347

Italy47,218

UK38,500

Kazakh- stan15,400

Netherlands15,204

Poland22,000

CzechRepublic10,200

Finland9,576

Ukraine21,600

Greece12,000

Portugal11,500

Sweden8,090

Norway7,035

Denmark4,105

Ireland4,000

Georgia 3,000

Lithuania1,226

Latvia879

Armenia 2,200

Estonia530