While telcos merge, investors rush for tower assets

When number of telecom operators is shrinking the tower infrastructure companies are expected to lose tenants. But now there is an unusual rush to invest in these infrastructure firms. Yesterday KKR and CPPIB bought a 10.3% stake in Bharti Infratel for Rs 6193 crore in third such deal in the last six months where financial or strategic investors are lapping up the tower companies. In December Canada-based Brookfield Infrastructure bought controlling stake in tower business of Reliance Communication for Rs 11,000 crore. And in October American Tower Corporation (ATC) bought a 51% stake in Viom Networks for Rs 7635 crore which included 35% from Tata Teleservices."Telecom operators need cash as they now pay for spectrum at market price through auction so they are monetizing their investments in tower companies," says Manoj Tirodkar, chairman GTL Infrastructure. The Mumbai based telecom tower company is under strategic-debt-restructuring process to be completed in next 12 months with a ...