India will monetize 10,014 telecom towers of the government-owned mobile network operator, BSNL, on a 20-year Operate-Maintain-Transfer (OMT) concession, according to ET Infra. The initial estimated concession value for the 10,014 towers is $504 million. India’s Department of Telecommunications says that BSNL’s 68,049 towers across the country, with 70 percent connected by fiber, are suitable for MNO 4G and 5G network expansion and service densification.
Bidding will be conducted in a single-stage, two-part selection process with the award going to the bidder offering the highest total upfront concession fee. As a brownfield OMT concession, the successful bidder will not be required to make capital investments on the existing infrastructure.
Of note, the eligibility of bidders will be based solely on their financial capacity, not necessarily on technical qualifications, mainly to attract maximum participation from the industry. However, bidders are required to submit information on whether they have the requisite expertise, either on their own or through operate-and-maintain partner(s), to fulfill the service level requirements.
Site rentals are expected to make up 79 percent of the concessionaire’s revenue stream with another 12 percent expected from mobile edge compute deployments. A combination of new technology and microwave backhaul rollouts along with EV charging capabilities at tower sites are expected to make up the nine percent balance.
The concessionaire can set lease rates and fees for MNOs based on terms stipulated in the Master Service Agreement and other project agreements. As part of the OMT agreement, the concessionaire must reserve one location on the tower for BSNL at no charge, although it can charge incremental rentals and fees for any assets deployed outside the reserved spot. Rates for such rentals and fees charged to BSNL will be set based on the benchmark Master Service Agreements the concessionaire has with other MNO tenants, and as determined by BSNL.
The successful bidder will have the right of first refusal when BSNL puts up more towers for monetization in subsequent rounds. The date for the first round of bidding has not been announced yet.
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