The challenges are mainly local

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Rajiv Venkat, Executive Director, Teracom – a leading tower company talks to 4Ps B&M about what is holding back the growth of the tower segment in India. Excerpts: 4Ps: How is the tower industry shaping?
RV: The business of setting up of telecom infrastructure in India has been on an upswing, especially in the last one year and has a lot of potential for positive growth in the future as well. There are two reasons for this unprecedented growth. Firstly, all the incumbent service providers are expanding their networks and secondly, there is a new generation of service providers which is coming in, particularly players like Aircel that are expanding on a pan India basis. In fact, telecom infrastructure players like Unitech Wireless, Swan, Loop, et al, plan to expand their business in the near future. Also, BSNL has embarked upon one of the biggest network expansion plans in India for 93 million lines, which will again generate huge demand for players like us.

4Ps: What about the challenges faced?
RV: For a turnkey infrastructure set up company and service provider like us, the challenges are mainly local. The cost of labour, the vendor, supplier base, the approvals for land, et al, are all regional and location based issues which are to be dealt with to grown on a pan India basis. Then, steel prices are also critical to our success as it forms an important part of our capital investment in setting up of infrastructure.

4Ps: What are the growth drivers in the long term?
RV: Technology is undoubtedly going to be the biggest growth driver. If you see, apart from the business of telecom tower projects implementation, the newer technologies that are coming up are going to be working on the same or similar infrastructure.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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