Towercos flourish as operators rely on shared assets to make 5G viable

The economics of 5G networks dictate that most operators will have to engage in far higher degrees of asset sharing than they currently do, overcoming their hostility to non-ownership models to expand their use of neutral host infrastructure and even active RAN sharing. One of the indicators of this trend is the high valuation of independent tower operators, which despite their own market pressures – MNO consolidation, the shift to new site types for base stations – are still well-liked by investors. Rising tenancy rates, driven by MNOs’ increasing willingness to offload their own infrastructure and use shared sites, are an important factor in keeping valuations high. As an example, Africa-centric towerco Helios Towers closed its initial public offering (IPO)…