As the global telecom tower industry absorbs the impact of interest rate cycles, carrier consolidation, and the entrance of new investor classes, towercos are recalibrating their strategies—not only to survive, but to lead in a fundamentally reshaped ecosystem. A panel of senior executives gathered at the TowerXchange Meetup MENA to dissect how global trends are rippling through local markets, and how towercos can ride the next wave of disruption and growth.

High interest, higher expectations

In a high interest rate environment, the economics of infrastructure investments are under the microscope. But far from retreating, some towercos see this moment as a catalyst for change. “Higher interest rates mean higher costs,” explained Emmanuel Leonard, Chief International Officer at TAWAL. “Some funds have exited the tower market, they’ve adjusted their hurdle rates. That’s created space for new players—this is where TAWAL comes in. We’ve become competitive in Europe, which maybe wasn’t the case three or four years ago.”

Rather than breaking the towerco model, the cycle has reaffirmed its resilience. “You’ve seen transactions in the US at 30x plus. Public towercos are trading in the mid-20s,” said Junaid Shafi, Vice President of International M&A at SBA Communications. “The model holds up, but you need quality assets and the ability to operate through cycles. Long-term private capital is still interested—especially if cashflow is reliable.”

From an investment perspective, volatility isn’t necessarily a deterrent—if the fundamentals are right. Aldo Cardoso, Managing Director at DTCP, framed the current moment as one of transformation: “You either cut costs or increase revenues. We’re better at costs, but we’re also looking forward. AI is a tailwind for the industry. The beginning of a supercycle.” For him, the shift to AI-powered applications opens new opportunities in DAS, IBS and edge infrastructure. “AI on the go needs the infrastructure to match it. It has to work at the edge—not just in datacentres.”

Gulf capital, European complexity

One of the defining shifts in the market is the growing presence of Gulf capital in European tower assets. These investments are not just passive—they’re actively reshaping how local markets operate. “We’re seeing investment like e& into CETIN and PPF, and indirect capital coming via Vodafone,” said Gergő János Budai, Managing Director Cluster Markets at Vantage Towers. “It’s helping to rethink the markets. In Central and Eastern Europe, we have very different levels of development—Hungary has four or five infra companies against three MNOs. In Romania, it’s the other way around. The investors entering these markets are actively changing the structure.”

This shift is also prompting strategic reflection around towerco business models. “There’s always the question: should you be a pure passive towerco or a netco?” Budai continued. “CETIN started as a netco, and after investment from e&, they’re moving more towards a passive model.”

For the Gulf players themselves, this moment represents an opportunity to expand influence while shaping future standards—especially as European markets open to more dynamic ownership and partnership structures.

Consolidation and competition collide

While capital is fuelling expansion, carrier consolidation and lease renegotiations are complicating towerco planning. The impact varies by region, but the need for proactive risk management is universal. “In Pakistan, we used to have four MNOs—now it’s three,” said Emmanuel Leonard. “There’s a clear long-term risk. We’re careful not to take too much exposure to a customer going through a merger.” These shifts demand a disciplined commercial approach. “When a merger happens, you negotiate. But we’ve seen no material impact if you’re ahead of it,” Leonard added.

Yet consolidation also has implications for investor sentiment. “Telecom consolidation is net-net negative,” said DTCP’s Cardoso. “Take Zegona in Spain—they’re asking Vantage Towers for a 40% lease reduction. In four years they’re threatening to walk away. That’s a risk we need to avoid at all costs.” His advice? “The challenge now is to make customers stickier.”

Even outside traditional MNO deals, the question of lease security and land aggregation remains an issue. Budai noted that too much value is being extracted without added service. “You’re taking money out of the value chain without giving anything extra,” he said. “That’s where towercos can collaborate.”

Learning across geographies

With expansion across continents, towercos now operate in an increasingly comparative environment. What works in one region may not in another—but valuable lessons can be exchanged. Professor Konstantinos Masselos, President of the Hellenic Telecommunications & Post Commission (EETT), pointed to Europe’s regulatory support. “The EU framework encourages expansion through joint ventures and public-private partnerships. This is especially valuable for developing markets looking to attract capital.”

Technology is also blurring the boundaries between regions. Budai observed that 5G has changed coverage expectations entirely: “There’s no longer separate signal levels for indoor and outdoor. You need deep, uniform coverage. That means towercos need to own the in-building discussion. It’s a whole new market.”

Meanwhile, Leonard highlighted regional cost structures. “Ground rent is expensive in the Gulf—particularly Saudi Arabia,” he noted. “But that creates opportunities for efficiency and scale. We’ve already consolidated Zain and stc portfolios. In other regions like Pakistan, our focus is more on co-location and energy services.”

New foundations for a global model

As the global tower market matures, what once worked everywhere may no longer be the default. A convergence of capital, regulatory reform, and rising technology demand is pushing towercos to evolve—sometimes rapidly. “There’s a reason Coca-Cola made more money from the development of fridges than the manufacturers,” said Cardoso. “It’s about enabling usage—not just owning the infrastructure.”

Whether navigating lease renegotiations, adapting to AI, or managing investor expectations, today’s towercos must think like global businesses, not just infrastructure owners.

Conclusion

The global tower ecosystem is being rewritten by macroeconomic forces, strategic capital and new digital demands. To lead in this new environment, towercos must go beyond asset ownership and become agile, insight-driven partners—capable of adjusting to cycles, absorbing regional nuance, and building infrastructure that is not just essential, but future-ready. The model remains resilient, but its success will hinge on how deeply it can adapt to the realities of a fast-changing world.