What Does Indus Towers Do? Business Model Explained

What does Indus Towers do

A company that benefits the most from the aggressive expansion of telecom companies is Indus Towers. What does Indus Towers do to benefit simultaneously with telecoms? You may wonder.

What does Indus Towers do

To answer this question, we will discuss the Indus Tower business model in detail. So, stay tuned!

(A) Indus Towers: Profile Overview

As the name suggests, “Indus Towers” is a tower company. Officially, Indus Towers Limited is a telecommunications infrastructure company based in India offering passive infrastructure services to telecom operators. 

The telephone towers emitting signals of Jio, Airtel, Vi, etc. that you see all around you belong to tower companies like Indus Towers.

So, does it mean that Airtel, Jio, and Vi don’t have their individual towers? Yup, true! Curious to know more? Wait, I will tell you the details in the next section i.e. “Working Strategy.”

Before that have a sneak peek at the profile of Indus Towers-

ParticularsIndus Towers Limited
Type of CompanyPublic
IndustryTelecommunications
PredecessorBharti Infratel
FoundedNovember 2007
Key PeopleN. Kumar (Chairman);
Prachur Shah (MD & CEO)
HeadquartersDLF Cyber City, Gurugram (Haryana, India)
Number of Locations219,736 towers (FY24)
Area ServedIndia
CompetitorsAster,
GTL Infrastructure,
HFCL,
Tata Communications,
ATC India, etc.
Indus Towers: Profile Overview

Look, Indus Towers Limited isn’t an entirely independent company neither it was one of the largest global mobile tower infrastructure operators.

Its purple patch began when it merged with Bharti Infratel, Vodafone Essar, and Idea Cellular. All three were the subsidiaries of Airtel, Vodafone, and Idea respectively.

Post-merger, the ownership of Indus Towers was like this-

OwnersShares Ownerd (%)
Bharti Airtel41.43%
Vodafone Group21.0%
Providence Equity3.1%
PublicThe rest of the shares
Ownership of Indus Towers

As of FY24, there are 2,19,736 Indus Towers in India. Do you know that it was quite happy to see the revival of Vi? We have already explained it here- Vi vs Airtel vs Jio. You can go through the article for detailed info.

(B) Working Strategy: What does Indus Towers do?

Coming to the most anticipated part of this write-up! So what does Indus Towers do? Earlier we told you that Indus Towers offers passive infrastructure service to telecom companies and earns a lot of money simultaneously. 

Here’s what they do-

(B.1) Tower Installation & Ownership

Indus Towers operates as a crucial backbone in the telecommunications sector by providing infrastructure services primarily in the form of telecom towers. Yes, they build, install, and own a vast network of telecom towers across India. 

To the uninitiated, let me tell you that these towers are the physical structures that support antennas and other equipment necessary for wireless communication.

They are strategically located to ensure optimal coverage and connectivity for telecom services, including mobile voice, data, and internet.

(B.2) Tower Leasing & Sharing

Indus Towers adopts a shared infrastructure model, wherein it leases space on its towers to multiple telecom operators. This approach allows telecom companies to avoid the costs and complexities of building and maintaining their own towers. By sharing infrastructure, Indus Towers maximizes the utilization of its assets and promotes efficiency in the industry.

Sounds complicated?

Let me explain it in simple terms!

Here we will answer the question that was left in the previous section- Do telecom companies like Airtel, Vi, Jio, etc. lack individual towers? True fact! They don’t have their own towers. Instead, they take the towers on rent and use them.

Do you know, numerous telecom companies can share the same tower network? This saves the overall cost of telecoms and lowers the prices that customers need to pay to telecoms. 

Who will benefit the most if numerous telecom companies rent the same towers? Of course the tower company. And here the company is- Indus Towers!

That’s how the expansion of telecom companies to deeper parts of India is highly advantageous for Indus Towers.

(B.3) Tower Maintenance and Upkeep

Tower Maintenance & Upkeep

Once established, Indus Towers is responsible for maintaining and servicing these towers to ensure they remain in optimal condition. This includes regular inspections, repairs, and upgrades to keep the infrastructure functional and reliable.

(B.4) Site Management and Operations

Beyond tower installation and leasing, Indus Towers manages the overall operations of its sites. This includes handling permits, regulatory compliance, security, and environmental considerations associated with tower infrastructure.

(B.5) Technology Integration

Indus Towers integrates advanced technologies into its infrastructure to improve performance and efficiency. This may involve deploying equipment for 4G and 5G networks, as well as implementing monitoring systems and automation tools to optimize operations.

(B.6) Environmental Sustainability

Recognizing the importance of sustainability, Indus Towers focuses on reducing its environmental impact. This includes initiatives such as deploying energy-efficient equipment, using renewable energy sources and implementing eco-friendly practices in tower construction and maintenance.

(B.7) Customer Support

Indus Towers places a strong emphasis on customer satisfaction by providing responsive support services to its clients, which primarily consist of telecom operators. This includes addressing inquiries, resolving issues, and collaborating with customers to meet their specific infrastructure needs.

(B.8) Employee Engagement & Innovation

To foster creativity and inclusiveness, they use the “Indus Idea Incubator,” encouraging employees to share ideas and think creatively. Their structured approach, called “Policy Deployment,” involves all employees in goal-setting, creating an exciting and challenging work environment.

(C) Revenue Sources: How does Indus Towers make money?

Indus Towers generates revenue through various channels related to its telecom infrastructure business. 

Here are the financials of Indus Towers for the fiscal year 2024-

Financial Aspects (FY24)Amount
Market Capitalization₹92,256 crore
Revenue₹28,961 crore
Operating Income₹8,122 crore
Net Income₹6,036 crore
Total Assets₹55,867 crore
Total Equity₹27,038 crore
Profit (Q4)₹1,853 crore 
Financials of Indus Towers

Let me explain the revenue sources in detail-

(C.1) Tower Rental Fees

The primary source of revenue for Indus Towers is the rental fees charged to telecom operators for leasing space on its towers. These operators pay Indus Towers for the use of infrastructure to mount their antennas and other equipment, enabling them to provide wireless services to their customers. So, the more the clients, the higher the rent.

(C.2) Colocation Services

It offers collocation services. Meaning? It allows multiple telecom operators to share space on the same tower. Each operator pays rent based on the amount of space they occupy, maximizing the utilization of the infrastructure and generating additional revenue for Indus Towers.

(C.3) Build-to-Suit Projects

You know the same tower doesn’t fit for all. Suppose Airtel wants to implement 5G services on a Tower but Vi wants to run 4G only, then Indus Towers undertakes build-to-suit projects. Here, it constructs towers according to the specific requirements of telecom operators. These operators then lease the completed towers from Indus Towers under long-term agreements, providing a steady stream of revenue over the contract period.

(C.4) Site Maintenance & Services

Beyond tower rental fees, Indus Towers generates revenue from providing maintenance and other services related to tower infrastructure. Telecom operators may contract Indus Towers for site maintenance, upgrades, and other value-added services, generating additional revenue streams.

(C.5) Technology Upgrades & Enhancements

As technology evolves, Indus Towers offers technology upgrades and enhancements to its infrastructure, such as deploying equipment for new generations of mobile networks like 4G and 5G. Telecom operators pay fees for these upgrades, contributing to Indus Towers’ revenue.

(C.6) Energy Management Solutions

Indus Towers offers energy management solutions to its customers, including renewable energy installations, energy-efficient equipment, and power optimization services. Revenue is generated through the sale of these solutions and associated services.

Its goals are-

  • Net-Zero by 2050
  • Expand Renewable Energy Portfolio
  • Zero Waste

Thus, it opened the doorway to a sustainable future with improved efficiency and cost optimization.

With its extensive telecom infrastructure, Indus Towers maintains a diversified revenue stream within the telecommunications industry.

(D) Marketing Strategies

Indus Towers marketing strategies

Do Indus Towers need to do marketing? It doesn’t serve the common folks directly…. Isn’t it?

Well, despite serving only telecom companies rather than individual consumers, marketing and advertising still plays a crucial role in its business strategy. Here’s why and how Indus Towers approaches marketing-

(D.1) Brand Visibility & Recognition

Indus Towers invests in marketing to enhance its brand visibility and recognition within the telecom industry. Building a strong brand identity helps attract potential clients, establish credibility, and differentiate itself from competitors in the highly competitive market.

(D.2) Relationship Building

Marketing efforts help Indus Towers nurture relationships with existing and potential telecom clients. By showcasing its expertise, reliability, and commitment to service quality through various marketing channels, Indus Towers reinforces its value proposition and strengthens its connections with telecom companies.

(D.3) Online Presence

Indus Towers maintains a strong online presence through its website, social media channels (LinkedIn or Twitter), and industry directories. These digital platforms serve as essential touchpoints for telecom operators researching infrastructure solutions, making it crucial for Indus Towers to maintain an informative and engaging online presence.

By employing a comprehensive marketing strategy tailored to the B2B landscape, Indus Towers effectively promotes its services and maintains a competitive edge in the telecommunications infrastructure market.

(E) Ending Note

Indus Towers is a big part of how phones work. They build towers that help us make calls and use the internet on our phones. They let different phone companies share these towers, which saves money and helps the environment. Indus Towers also cares about using clean energy and keeping their towers working well. Their work is important because it helps us stay connected all over India. 

What do you think about Indus Towers’ role in our daily lives? Share your thoughts below!

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Published By: Supti Nandi
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Neha Sharma
Neha Sharma
4 days ago

OMG! I never knew that telecom titans rent out the towers. I thought the tower belongs to individual companies like Airtel and Vi

Madhumita Das
Madhumita Das
4 days ago

What about BSNL? Doesn’t this govt. Telecom company rent the towers?