Canada's renowned global asset management firm, Brookfield Asset Management, is poised to secure American Tower's operations in India in a colossal deal amounting to $2.5 billion, marking its ascendancy as the country's largest telecom tower operator, surpassing Indus Towers, as per reports from Reuters. This transaction, considered one of the most substantial telecom infrastructure deals in India, signifies American Tower's exit from the Indian market, while concurrently marking Brookfield's third significant telecom acquisition within the past four years.
Presently overseeing approximately 157,000 telecom towers in India through its domestic associate, Data Infrastructure Trust, Brookfield's strategic move aligns with its aim to diversify revenues and bolster its footprint within the dynamic Indian telecom landscape. In comparison, American Tower manages around 77,000 towers, and Indus Towers boasts a network of approximately 193,000 towers.
With the competition intensifying among telecom tower companies to secure partnerships with India's top three telecom giants—Bharti Airtel, Reliance Jio, and Vodafone Idea grappling with operational and financial challenges—Brookfield's acquisition is expected to fortify its position in the market. The deal is anticipated to augment Data Infrastructure Trust's revenues and extend its connectivity with all major mobile network operators in India, according to an official statement from Brookfield.
The financials of the transaction reveal that Brookfield's domestic associate, Data Infrastructure Trust, reported revenues amounting to Rs 111 billion ($1.33 billion) in the fiscal year concluding in March 2023, in stark comparison to Indus Towers' Rs 283.8 billion. The completion of this transformative acquisition is anticipated in the second half of 2024, underlining Brookfield's strategic moves to assert its dominance in India's telecom infrastructure landscape.