NEW DELHI: As it prepares to upgrade current tower sites for the 5G rollout later this year, and add more light tower sites and small cells to expand coverage, Indus Towers Ltd, India’s largest telecom tower installer, will focus more on cutting energy costs.
Indus, the world’s largest installed passive telecom infrastructure provider with over 185,000 towers, is considering combining Internet of Things (IoT) and fixed energy models to mitigate the impact of fluctuating energy prices on its operations.
For the time being, it is passing on the burden of increasing fuel prices to its telecom service provider clients. With over 185,000 towers, Indus is trying to use the Internet of Things (IoT) and fixed energy models to combat energy price volatility, which have a direct impact on its operations.
It currently transfers the expense of increasing fuel prices on to its telecom service provider consumers. In an interview, Bimal Dayal, chief executive officer and managing director of Indus Towers, said, “This fluctuation has impacted and is making us a lot more conscious to optimise it for our consumers.”
Under contracts with telcos, the fixed energy model will include a predefined cost for a year or two. In this instance, Indus will put up the capital but keep any profits it generates by lowering energy costs beyond what it has promised to clients.
“We’re currently working with our customers to see whether we can incorporate IoT as well,” he said. IoT could aid in the monitoring of energy consumption, allowing the organisation to design cost-cutting strategies. Green energy is used by about 80,000 towers, or 43% of the total number of installed towers.
Some sites, however, include diesel generators and batteries as a backup plan.
Indus Towers’ electricity and fuel expenses, which account for the majority of its total expenses, increased by more than 7% to $10,265 crore in 2021-22 from $9,583 crore in FY21.
Indus is also looking on ways to resurrect or reuse the batteries that power tower sites, which will help save money on electricity. After the merger with Bharti Infratel is completed, Dayal says the company can focus on new ventures. The process began in 2018, and Vodafone group promoters now own 21.05 percent of the combined company.
Bharti Airtel and Nettle Infrastructure are subsidiaries of Bharti Airtel. After picking up an extra 0.05 percent stake in March 2022, the two corporations now own 46.49 percent of the company.
By the end of the quarter, Indus hopes to have renegotiated its master service agreements (MSAs) with the telecoms. “It’s a matter of deliberation and compromise.” I’m optimistic that we’ll be able to close one of the agreements this quarter,” Dayal added, noting that one of the deals was closed in the March quarter.
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