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In Telecom, Tower Companies Soared While Operators Struggled

The 2022 Telecommunications Value Creators Report

Franck Luisada, Vaishali Rastogi, Maikel Wilms, Simon Bamberger, Michaela Novakov and Hady Farag

Boston Consulting Group, 2022

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If you thought the COVID-19 pandemic was great for telecom operators, you’re probably not alone. Internet usage was way up, which makes sense when lockdowns moved everything, from work to socializing, online. But telecom operators didn’t benefit from the pandemic, despite being vital to keeping the world running. They lost out on roaming charges, and regulations kept them from raising prices. How will they add value from 2022 onwards? This special report from the Boston Consulting Group offers some guidelines.

Summary

Over the past five years, telecommunications infrastructure companies had a median annual total shareholder value (TSR) of 24%, while telecom operators reported only a 7% TSR.

Infrastructure companies – meaning those that build, maintain and operate cell towers – are outperforming telecom, cable and wireless operators when it comes to total shareholder return (TSR). Companies like Cellnex Telecom, Tele2, Safaricom, Bharti Airtel and Globe Telecom build and maintain physical infrastructure like towers, but they’ve also carved out higher revenues by providing adjacent services like customer service and better pricing, or partnerships and/or 5G. They now hold 13% of aggregate market value – doubling their share since 2016.

Going forward, both telcos and infrastructure companies must continue modernizing, ...

About the Authors

Franck Luisada, Vaishali Rastogi, Maikel Wilms, Simon Bamberger, Michaela Novakov and Hady Farag are professionals with the Boston Consulting Group.

In Telecom, Tower Companies Soared While Operators Struggled

The 2022 Telecommunications Value Creators Report

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Summary

Over the past five years, telecommunications infrastructure companies had a median annual total shareholder value (TSR) of 24%, while telecom operators reported only a 7% TSR.

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