American Tower Corporation: International Market Overview Fourth Quarter 2017 American Tower International Market Overview
Total Page:16
File Type:pdf, Size:1020Kb
American Tower Corporation: International Market Overview Fourth Quarter 2017 American Tower International Market Overview Introduction International Portfolio Overview • International Markets Poised for Smartphone Growth Advanced Wireless Markets Germany • France Evolving Wireless Markets Argentina • Mexico • Brazil • South Africa • Chile • Peru Developing Wireless Markets Colombia • Paraguay • India • Ghana • Uganda • Costa Rica • Nigeria Note: Definitions and Data Sources Available on Last Page of Presentation March 22, 2018 2 International Portfolio Overview(1) (1) Reflects the Company's Asia, EMEA and Latin America segments. (2) Portfolio also includes fiber and fiber-related assets, which are excluded from the site count. (3) Portfolio primarily consists of urban telecommunications assets, fiber and the rights to utilize certain existing utility infrastructure for future telecommunications equipment installation, all of which are excluded from the site count. (4) Portfolio also includes urban telecommunications assets, including fiber, concrete poles and other infrastructure, which are excluded from the site count. (5) Includes in-building and outdoor DAS networks. (6) Represents top 10 international tenants for the quarter ended December 31, 2017. March 22, 2018 3 International Markets Poised for Smartphone Growth Wireless Penetration vs. Mobile Broadband (3G/4G) Penetration(1) (Size of bubbles = Number of mobile subscribers; Wireless and Broadband penetration calculated by dividing subscriber numbers by total population) Costa Rica, despite high wireless and Broadband 180% penetration, significantly lags behind in mobile Broadband speeds 160% Advanced 140% 120% 100% Wireless Penetration 80% 60% Evolving 40% Developing 20% 0% 0% 20% 40% 60% 80% 100% 120% Mobile Broadband (3G/4G) Penetration AMT’s International Exposure Provides Access to Significantly Less Mature Wireless Markets Notes: (1) Data for Peru, Ghana, & Nigeria calculated using CAGR’s from 2Q2015; Data for USA calculated using Cisco VNI 3G/4G penetration Sources: Altman Vilandrie & Co. research, Bank of America Merrill Lynch Wireless Matrix, GSMA Intelligence, BuddeComm, Statista, OECD, Cisco VNI Report March 22, 2018 4 4 Advanced Wireless Markets Germany • France March 22, 2018 5 Germany WIRELESS MARKET OVERVIEW: Snapshot Key Catalysts Data as a % of Wireless Revenue (2) As of 2010 – • 2018 auction for 5G transition in the 2 GHz Indicator 57% 61% 3Q17 3Q17 CAGR (2x60 MHz) & 3.6 GHz (300 MHz) bands 54% 49% Wireless • ~80% LTE Coverage (66.3 million customers) 44% 118M 1% as of end of 2017 42% Subscribers 38% • LTE rollout by all major operators in 800 and 32% Wireless 143% 1% 2600 MHz bands Penetration • T-Mobile rolled out LTE in 900 MHz in Mar‘17 Average to increase coverage Monthly Voice 161(1) 3% • LTE-A launched by all major carriers MOU ARPU $16 0% 2010 2011 2012 2013 2014 2015 2016 2017 WIRELESS CARRIER OVERVIEW: Top 3 Carrier Characteristics Carrier-Announced Network Deployment Timelines AMT Subscriber Spectrum Current Customer? Market Share Holdings Technology 2012 2013 2014 2015 2016 2017 2018 Urban LTE O2 Roll-out in began w/ 800 MHz in Started LTE coverage ~360 MHz LTE coverage in 2 rural areas offering LTE-A of 80% pops Holdings in 700, 800, cities Started 2G/3G (Oct 5), but 38% 900, 1800, 1900, 2100, offering VoLTE & very limited 2600, and 3500 MHz /4G 97% of VoLTE 2Q15 VoWiFi for all buildout bands network Launch customers HSPA+ HSPA+ in LTE Mar’14 Telefonica Europe 2012 ~220 MHz 4G LTE-A Covered 90% of Launched Holdings in 700, 800, coverage 36% 3G/4G launched in German population LTE with 900, 1500, 1800, 2100, LTE reaches Nov’14 by EOY 2015 900 MHz Deutsche Telekom and 2600 MHz bands 93% ~230 MHz Roll-out started in 800 Boosted LTE Rollout of Launched LTE- Holdings in 700, 800, MHz in rural areas as coverage to 90% NB-IoT 26% 3G/4G LTE A in 1Q15 900, 1500, 1800, 2100, required by regulators 2Q16 sensors Vodafone and 2600 MHz bands Notes: (1) AV&Co. projection based on Bank of America Merrill Lynch Wireless Matrix 2Q15 (2) AV&Co. projection based on Bank of America Merrill Lynch Wireless Matrix 3Q15 Sources: American Tower research & analysis, Altman Vilandrie & Co. research & analysis, Bank of America Merrill Lynch Global Wireless Matrix January 2018, carrier annual reports, press releases and news articles March 22, 2018 6 France WIRELESS MARKET OVERVIEW: Snapshot Key Catalysts Data as a % of Wireless Revenue (2) As of 2010 – Indicator • Temporary spectrum in the 3400 MHz-3800 3Q17 3Q17 CAGR MHz and 26 GHz bands for 5G trials awarded 54% 58% by ARCEP 50% Wireless 46% 70M 1% • Bouygues and SFR will end 4G roaming deal 43% Subscribers 40% by 2018 due to pressure from ARCEP, 36% Wireless accelerates LTE network buildout (Jun’16) 31% 119% 3% Penetration • ARCEP fines Orange and SFR for not meeting rural coverage agreement (Sep’16) Average Monthly Voice 88(1) 1% • LTE-A launched by all major carriers MOU • Providers to invest ~$4B to roll out 4G w/ no coverage gaps by 2020 ARPU $24 -6% • Orange announces rollout of LTE based 2010 2011 2012 2013 2014 2015 2016 2017 broadband service (Mar’17) WIRELESS CARRIER OVERVIEW: Top 4 Carrier Characteristics Carrier-Announced Network Deployment Timelines AMT Sub Mkt. Spectrum Current Customer? Share Holdings(2) Technology 2012 2013 2014 2015 2016 2017 2018 Launch 5G trials scheduled ~90 MHz 2G/3G/ LTE Jun’12 in for late 2018/ early 32% Holdings in 700, 800, 900, Marseille 2019 1800, 2100, 2600 MHz bands 4G Orange ~80 MHz Launch LTE-A 81% LTE coverage; 2G3G/ HSP 29% Holdings in 700, 800, 900, Dec’12 launched in 18 municipalities 1800, 2100, and 2600 MHz 4G A+ in Lyon Jun’14 covered with LTE-A SFR Numericable bands Ultra LTE-A First to ~75 MHz Launch with 300Mb/s launch 95% LTE Holdings in 700, 800, 900, 2G/3G/ in 20% HSPA+ LTE speed rollout VoLTE coverage 1800, 2100, and 2600 MHz 4G Oct’13 Bouygues bands in November Nov’15 700 & 1800 ~55 MHz 2G/3G/ 4G available at 84% of population 19% Holdings in 700,900,1800,2100, and HSPA+ LTE no additional MHz bands covered with 4G 2600 MHz bands 4G cost Dec’13 added Free Mobile Notes: (1) AV&Co. projection based on Bank of America Merrill Lynch Wireless Matrix 2Q15 (2) AV&Co. projection based on data as % of revenue for Orange 09’-12’ and 12’-16’ CAGR for Germany as similar market Sources: American Tower research & analysis, Altman Vilandrie & Co. research & analysis, Bank of America Merrill Lynch Global Wireless Matrix January 2018 , carrier annual reports, press releases and news articles, ARCEP March 22, 2018 7 Evolving Wireless Markets Argentina • Mexico • Brazil • South Africa • Chile • Peru March 22, 2018 8 Argentina WIRELESS MARKET OVERVIEW: Snapshot Key Catalysts Data as a % of Wireless Revenue (2) As of 2010 – • Telecom Argentina to invest $5B by 2020 Indicator 59% 3Q17 3Q17 CAGR (announced 2018) 53% 54% 48% Wireless • ENACOM auctions 2.5 GHz (2500 MHz – 2690 46% 61M 2% MHz) bands with Movistar and Claro winning 41% Subscribers 37% 30MHz and Personal winning 40 MHz (Jul’17) 31% Wireless 138% 1% • By 2016 Argentina surpassed 60% 4G Penetration coverage across the country Average • ENACOM publishes guidelines to encourage Monthly Voice 109(1) 0% telecom competition (Jan’17) MOU ARPU $7 13% 2010 2011 2012 2013 2014 2015 2016 2017 WIRELESS CARRIER OVERVIEW: Top 3 Carrier Characteristics Carrier-Announced Network Deployment Timelines AMT Subscriber Spectrum Current Customer? Market Share Holdings(3) Technology 2012 2013 2014 2015 2016 2017 2018 ~135 MHz Announces plans Will invest 2G/3G Launch to invest $2.65B Holdings in 700, 850, $100M in further 37% HSPA+ (Jun’14) LTE over 5 years in 1700, 1850, 1900, 2000 /4G network buildout MHz network (Feb’15) América Móvil ~125 MHz 68% coverage, First 5G tests 2G/3G Launch Holdings in 700, 850, 3M users conducted w/ 32% HSPA+ LTE (Dec’14) 1700, 1850, 1900, 2000 /4G (Jun’16) Ericsson MHz Telefónica ~100 MHz 2G/3G Launch 6M LTE customers, 31% LTE 86% coverage in Holdings in 700, 850, /4G HSPA+ (Dec’14) 1700, 1900, 2100 MHz major cities Telecom Argentina Notes: (1) AV&Co. projection based on Bank of America Merrill Lynch Wireless Matrix 2Q15 (2) AV&Co. projection based on Bank of America Merrill Lynch Wireless Matrix 3Q15 (3) Holdings vary by region. Sources: American Tower research & analysis, Altman Vilandrie & Co. research & analysis, Bank of America Merrill Lynch Global Wireless Matrix January 2018 March 22, 2018 9 Mexico WIRELESS MARKET OVERVIEW: Snapshot Key Catalysts Data as a % of Wireless Revenue (1) As of 2010 – • Ifetel to approve or reject separation of Indicator 63% 3Q17 3Q17 CAGR Telmex proposed by AMX in Q1 2018 54% 47% Wireless • March 2018 auction of 2.5 GHz (2500-2690 44% 112M 3% MHz), all operators allowed to participate 39% Subscribers 35% • Conditions published and the Wireless 30% 90% 2% minimum reference value for each 20 24% Penetration MHz is set at $18.7mm Average • Red Compartida, 20-year wholesale wireless Monthly Voice 232(1) 3% broadband procurement, was awarded to MOU Altan Consortium (2): gives access to 90 MHz of 700 MHz band (Nov’16) ARPU $7 -5% • National roaming agreement signed by 2010 2011 2012 2013 2014 2015 2016 2017 America Mobil and Telefonica (Dec’16) WIRELESS CARRIER OVERVIEW: Top 3 Carrier Characteristics Carrier-Announced Network Deployment Timelines AMT Subscriber Spectrum Current Customer? Market Share Holdings(3) Technology 2012 2013 2014 2015 2016 2017 2018 Covered 13 Covered Purchase of ~200 MHz Mexican 65.5% of pops 2.5 GHz Holdings in AWS-1, AWS- 2G/3G HSPA+ LTE cities in 66% by Jun’15 spectrum 3, 850, 1900 MHz, 2500 /4G 2013 América Móvil GHz Covers the metropolitan area ~61 MHz Launched 2G/3G of the Valley of Mexico with 21% HSPA+ LTE in 2013 Holdings in 850 and 1900 /4G plans to cover more cities Telefónica MHz Has been advertising HSPA+ HSPA+ network as 4G Covers 70 million pops in ~130 MHz 2G/3G 144 cities (as of Oct16), 13% LTE Holdings in AWS-1, SMR, /4G with plans to cover 100 850, 1900 MHz LTE launched million by 2018 HSPA inLTE 3 cities by Oct’14 AT&T(4) Notes: (1) AV&Co.