Edotco expects to build 2,000 telco towers
Firm to work with customers to construct more sites, including rooftop installation
AXIATA Group Bhd’s wholly-owned subsidiary, edotco Group Sdn Bhd, targets to build about 2,000 telecommunication towers nationwide this year.
edotco Group Malaysia managing director Wan Zainal Adileen said telecom tower industry has been growing consistently at a pace of 1,000 to 2,000 towers per year.
“As a baseline, we are looking to build a similar number of sites every year, as in the past,” he told NST Business recently.
edotco manages 9,000 towers in Malaysia, of which 5,000 belong to its customers.
According to an analyst, edotco’s tower portfolio had risen by 10 per cent to 16,391 in the third quarter of last year, while the company’s managed sites increased by 17 per cent year-onyear to 10,821. Half of the group’s directly owned towers are in Bangladesh while 24 per cent are in Malaysia, 13 per cent in Cambodia, eight per cent in Myanmar and four per cent in Pakistan.
Wan Zainal said this is a significant number of towers owned and managed by the group.
Its tenancy ratio in Malaysia is 1.7 times, which is at an ideal range. “If we look at industry best practices, the ideal range for a good tenancy ratio is between 1.6 and 1.8 times.
“A tower company would be profitable and stable with good returns at this range, so I would say that 1.7 times is good, and 1.8 times is even better,” he said.
Wan Zainal said edotco will continue to work closely with customers in building more sites. This includes rooftop installation, which is a preferred option, especially in congested urban areas. He said in advanced countries like Japan, rooftops remain a main source for infrastructure locations.
“Rooftop solutions are feasible for certain types of infrastructure and location, for example university campuses.
“In urban environments, we are looking at deploying innovative solutions that best suit the sites while complying with local regulations.
“Sites are getting more complicated, especially in urban areas, where we need to work with customers, landlords and local authorities,” he added.