As connectivity becomes the lifeblood of digital economies, tower companies are under pressure to evolve. No longer just providers of vertical real estate, they are being drawn into adjacencies that touch everything from smart urban infrastructure to edge computing, and even electric vehicle (EV) charging. But in a region as diverse and complex as MENA, what does growth actually look like?

That was the central theme at a panel held during the TowerXchange Meetup MENA, where key figures from across the digital infrastructure ecosystem explored the future trajectory of towercos. From the macro trends of telecom consolidation to the micro-opportunities in indoor coverage and small cells, the conversation pointed towards a sector on the cusp of transformation—but one that must tread carefully.

Looking beyond the mast: a market of adjacencies

As core tower growth plateaus in some mature markets, the pressure is on to find revenue beyond the traditional tenancy model. Adjacencies like in-building solutions (IBS), distributed antenna systems (DAS), and edge data centres are gaining traction. These technologies are essential for increasing network capacity and coverage indoors and in dense urban environments, where macro towers are often impractical.

“There’s still plenty of build-to-suit demand in places like Saudi Arabia,” said Richard Ltaif, Chief Strategy Officer at Tawal, “but adjacencies are quickly becoming more central. IBS and DAS are now mainstream, and edge data centres are just a few years away from real commercial scale.”

Ltaif projected that adjacencies could make up to 20% of towerco revenues, an indication of how integral they will be to future strategies. While these opportunities are promising, not all are created equal. EV charging, for example, may not be a natural fit. “The business model, the customers—it’s completely different from telecom. Power-as-a-service is one thing. Powering EVs or communities is another.”

Scaling smarter: densification, fibre and the economics of 5G

The densification required for 5G, especially in urban environments, means more towers, more small cells, and more fibre. But this expansion is happening against a backdrop of uncertain operator revenues from next-gen services. While mobile data consumption is rising, monetising 5G—especially beyond consumer connectivity—remains elusive.

Garth Self, EVP Commercial & Operating Markets at TASC Towers, highlighted this tension. “Operators are struggling to make money from 5G. That’s a problem for us, because it limits what they can spend. Still, they need to densify, and that means more towers. Our job is to find cost-effective ways to support that growth.”

Fibre is a natural part of this conversation, especially as data demands increase. But who owns that fibre—and how it’s used—is crucial. “Most operators we work with already have fibre, or it’s state-owned” Self-noted. “We’re mainly talking about fibre to the tower. Fibre-to-the-home? That’s a whole different business.”

Artem Magdenko, Director at Citi Investment Banking, provided a broader financial perspective. “Towers are relatively safe compared to data centres or AI-heavy infrastructure. But moving too far into fibre or other verticals means stepping into unfamiliar territory. Towercos have to weigh portfolio expansion against operational complexity.”

A shifting market: M&A, consolidation and the hunt for efficiency

Structural changes in the telecom landscape are also influencing towerco strategy. Market consolidation—among both mobile network operators (MNOs) and towercos—is heating up. The rationale is clear: fewer players often mean less duplication and better margins. But consolidation can also reduce the addressable market for towercos, particularly if shared infrastructure becomes a default.

“In Pakistan, there are four MNOs and seven towercos. That’s too many,” said Ltaif. “There’s a need for rationalisation—on both sides.”

Vivek Gupta, Founder and Chairman of iSON Tower, added a cautionary note on tower sharing. “Some operators still want their own towers. That mindset is holding us back. We’re seeing single-tenancy towers, even in high-coverage areas. That’s not sustainable. Sharing is key.”

Yet not all forms of consolidation are problematic. “In some cases, consolidation can be good for investment,” said Magdenko. “It creates cost savings that can be reinvested into infrastructure. But from a competitive standpoint, it has to be managed carefully. If it goes too far, it limits opportunity.”

Mohammad Diab, Programme Director at Sofrecom Group, introduced the idea of telecom “delayering,” where operators evolve into service providers and hand off infrastructure to separate entities. “Once operators focus on selling services and data, a separate netco becomes essential. That’s where towercos can step in—if they’re ready.”

The long play: investing in predictability and navigating risk

Despite all the talk of disruption and evolution, towercos remain one of the few infrastructure sectors defined by long-term, stable revenue. That makes them attractive to investors—but only if they can manage the shift into new service lines without compromising reliability.

“Towercos are investable because the cash flows are predictable,” said Self. “But we’re entering a phase where we need to take smart risks. Not every adjacency will work. We have to be strategic.”

For Ltaif, the key lies in selective innovation. “Edge data centres, IBS, DAS—these are real. But EV charging? Maybe not. We’re focusing on adjacencies that align with our core.”

And as for future threats? “LEO satellites could eventually be a challenge,” Ltaif acknowledged. “But for now, they’re complementary. We’re even exploring partnerships.”

A region in motion: from local growth to global opportunity

The MENA region is not a single market but a mosaic of opportunities, shaped by varying levels of infrastructure maturity, regulatory openness, and technological adoption. Some countries are still early in their 4G journey; others are planning smart cities and 6G pilots. For towercos, this means tailoring their approach by market.

“Some regions are more ready than others. You’ve got high-growth and low-growth areas—it depends on where they are on the curve. What works in Egypt might not work in Oman.” Mentioned Gupta.

Even global trends have local implications. In North America, towercos like Crown Castle are retreating from fibre investments. That’s a signal, said Self, that towercos must be cautious in their diversification.

Ultimately, success will come down to strategic clarity. “There’s still room for new towercos,” Gupta said, “but only if they focus on collaboration, not duplication. This isn’t about planting more towers. It’s about building smarter networks.”

In a region defined by both promise and complexity, towercos are being called to evolve—from steel-and-concrete landlords to agile digital infrastructure partners. Growth will no longer come solely from vertical builds, but from expanding horizontally into adjacencies, forging smarter partnerships, and aligning with broader digital transformation agendas. Whether through edge data centres, IBS, or strategic M&A, the next frontier will reward those who can adapt quickly, invest wisely, and remain essential to the telecom ecosystem’s future.