Market Trends of France Telecom Towers Industry
5G Deployments are Expected to be a major catalyst for Growth in the Cell Tower Leasing Environment
- In the French telecom tower market, the swift expansion of 5G technology is propelling growth in the cell tower leasing sector. In contrast to 4G, introducing 5G necessitates a more compact network of cell sites. Given that 5G operates on higher frequency bands, which traverse shorter distances and are more prone to obstructions, there is a growing requirement to enhance the infrastructure in France. Consequently, this urgency has led to the construction of new towers and upgrades to the existing ones.
- Mobile network operators (MNOs) are shifting from the traditional model of building and managing their own sites to leasing from independent tower companies to meet rising demands. This leasing strategy enables MNOs to swiftly expand their 5G networks while avoiding substantial upfront costs. At the same time, tower companies enjoy increased occupancy rates and longer contract durations, significantly boosting the market's growth.
- With the expansion of 5G technology, mobile network operators (MNOs) are focused on equipping their sites with 5G-compatible equipment, leading to a surge in demand for leased tower space. Telecom towers increasingly adopt leasing strategies in France to guarantee comprehensive 5G coverage, particularly in urban and suburban areas. This trend highlights the significance of existing and newly constructed towers.
- According to the ARCEP, in December 2023, France opened around 50,000 5G sites. Free Mobile operates the highest number of sites among providers, with around 18,600 sites. Bouygues Télécom trailed, managing about 11,000 5G sites across France.
- In June 2024, Orange extends its 5G network access to all 4G customers in anticipation of the Paris 2024 Olympic and Paralympic Games. From June 3 to September 8, 2024, Orange would provide complimentary access to its 5G network for all 4G consumer and business customers. This initiative ensures a seamless connection for all Orange users during the Paris 2024 Games.
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The Rooftop Segment is Expected to Witness Significant Growth Opportunities
- The French telecom tower market is witnessing robust growth, primarily driven by an increasing demand for rooftop installations. Rooftop installations effectively address challenges like land constraints and community resistance to new ground-based towers. These installations enable mobile network operators (MNOs) to enhance network coverage and capacity while avoiding the lengthy approval processes associated with setting up new towers.
- Rooftop sites, strategically located in urban areas, allow MNOs to address the increasing demand for high-speed data and improve connectivity, particularly in crowded regions. With France hastening its 5G deployment, the need for a denser network of these sites intensifies, ensuring optimal coverage and performance. According to Eurostat, in 2023, approximately 93.34% of households in France had internet access, which witnessed little change from previous years. In 2023, the proportion of households with internet access peaked during the forecast period.
- Moreover, communities and local governments view rooftop installations as less intrusive, fostering wider acceptance. Mobile network operators (MNOs) capitalize on these installations by utilizing pre-existing structures, which cuts down on capital expenditure and accelerates the activation timeline. The surging demand for rooftop installations propels the French telecom tower market.
- In May 2024, Infovista's latest release of the AI-driven RF propagation model, Planet AIM, rolled out its latest version in France. This update bolsters Planet's RF planning features, introducing rooftop propagation and enabling coverage modeling across all rooftops on a single layer. With these enhanced capabilities, network engineers can pinpoint the sites visible to an FWA subscriber and assess rooftop mounting options for FWA CPEs. This advancement markedly boosts the speed and accuracy of FWA service rollouts, leading to heightened profitability.
