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In Telecom, Tower Companies Soared While Operators Struggled

Related Expertise: Telecommunications Industry

In Telecom, Tower Companies Soared While Operators Struggled

The 2022 Telecommunications Value Creators Report

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

Infrastructure companies that erect and operate cell towers were among the telecommunications industry’s top value creators, according to BCG’s 2022 Telecommunications Value Creators Report. Infrastructure companies in our sample posted an aggregate median five-year annual total shareholder return (TSR) of 24%, more than three times the 7% aggregate median TSR for telecom operators. Other highlights of our findings:
  • Although infrastructure players account for only 8 of the 60 companies analyzed in our Value Creators report, they made up half of our list of the top 10 telecom companies for TSR.
  • Since 2016, infrastructure companies more than doubled their share of the aggregate market value of all telecom companies in our sample, to 13%.
  • Some telecom operators remain standouts. Our list of the top 10 telecom value creators includes four—Globe Telecom, Bharti Airtel, Safaricom, and Tele2—that grew by offering adjacent services, better pricing and customer service, or 5G, or through partnerships.
Telecom infrastructure and operator companies will have to pursue different paths to grow their business and retain or increase their valuations in the future. Read how, along with other results from the full report, here.

Authors

Headshot of BCG expert Franck Luisada
Franck Luisada

Managing Director & Senior Partner, Global Sector Leader, Telecommunications

Paris

Headshot of BCG expert Vaishali Rastogi
Vaishali Rastogi

Managing Director & Senior Partner; Global Leader, Technology, Media, & Telecommunications Practice

Singapore

Headshot of BCG expert Maikel Wilms
Maikel Wilms

Partner & Director, Communications

Amsterdam

bamberger-simon-tcm9-239916.jpg
Simon Bamberger

Managing Director & Partner

Los Angeles

michaela-novakov2-tcm9-140787.png
Michaela Novakov

Principal

Prague

Headshot of BCG expert Hady Farag
Hady Farag

Partner & Director, Shareholder Value Strategy

New York

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