The landscape of Telecoms asset management is radically changing. Fuelled by pressure from multiple angles – political, commercial, and regulatory – the market in Europe is seeing an increasing number of newly independent Tower Companies, wholly owned Tower Companies and Joint Ventures.
Once described as the “grass and steel players” of the Telecom Industry by Boston Consulting Group, these companies are experiencing the pressure to deliver 5G rollout and to manage an increasingly diverse range of technologies all within and increasingly competitive marketplace and the context of settling into their new status, stakeholder, and investor relationships.
Given the specialist work we do in the Sector, I spend much of my week talking to the C-level execs who run Tower Companies. There are undoubtedly some very clear themes that emerge in terms of their priorities.
The path to becoming a commercial and independent entity requires the ability to drive revenue growth, deliver cost savings, and focus on audit and assurance.
Happily, I get to share good news. The tech is ready; and what’s more – it’s proven. Let me share some key insights with you
Founder & CEO
When it comes to revenue, we’ve found that 90% accuracy on cell tower inventory is considered a good industry standard, with some providers acknowledging that it’s actually a lot lower.
Accepting that status quo is equivalent to turning away revenue from the door.
There is a huge opportunity for players to generate new revenue, quickly, by integrating specialist technology that can more accurately and precisely identify inventory on any given tower.
A 5% increase in revenue from better inventory management is, in our experience, absolutely achievable. Based on a Tower Company with 35K towers and roughly £400M revenue, that’s an incremental £20M per year.
Audit and Assurance
The same precision technology can also help identify cross-sell and up-sell opportunities. Fast and accurate audits help you recognise (at greater speed and scale) inventory that should have been removed and / or space on the Towers. Especially important since new technologies can affect weight loads significantly. With the ability to accurately identify spaces across the asset base you can respond rapidly to customer requests or re-sell the space.
Showcasing your transformation to customers and investors also forms a critical part of the equation. Billing accuracy and the meeting of contractual obligations provide opportunities to showcase to customers and investors that the Tower Company is a high performer. This in turn drives confidence, enabling growth through the expansion of its asset base and the ability to raise additional capital to support future growth.
Cost and CO2 savings
10-15% of an engineer’s time is wasted going to visit mobile sites unnecessarily. Not taking enough, the right equipment or finding unexpected issues lead to delays which means wasted time and money.
By being able to ‘view’ a site remotely prior to visiting the site an engineer or contractor can verify what they need to do the job reducing truck rolls and wasted visits. It also enables the verification of inventory required, power set up, cabin layout and access issues.
A Tower Company with 20,000 sites will make around 5,000 site visits per month. A 12.5% saving represents 7,500 fewer truck rolls per year. This would save an estimated 228 tonnes in CO2 emissions per year, in addition to reducing fuel and vehicle costs.¹
AI can power the growth of tower company
Digital transformation is a very widely used term. But in the context of enabling the growth of Tower Company, there really is nothing else that can support you to deliver faster or more simply. Embedding proven AI software into your workflow, gives you precision data and insight at scale and at speed. Ultimately you gain a powerful business tool that delivers measurable improvements to the bottom line.
¹ Assumes 40mpg and 100 miles travelled per day. 2.68kg of CO2 per litre of diesel.