Tower consolidation signals revenue headwinds for Bharti Infratel

If the company acquires the balance 58% stake in Indus Tower, its tower network will be two and a half times the second-placed competitor

The Bharti Infratel stock has shed 21 per cent in the past three months due to consolidation, benign near-term outlook and decision by newbie Reliance Jio to focus more on owned towers rather than leasing them out from service providers such as Bharti Infratel.

The preference for own towers will mean that tenancies for Bharti Infratel will trend down from levels seen last year as well as earlier estimates by analysts. The near-term worry is the tenancy exits brought on by consolidation in the telecom sector, which, according to analysts at JP Morgan, will lead to flattish revenue growth for the