Industry Trend Analysis - Hurricane Recovery Poses New Infrastructure Sharing Opportunities - NOV 2017
BMI View: B ring ing their networks back online means operators will be taking on a heavy financial burden. Despite a grim short-term outlook, there is significant upside risk in the medium and long term as operators may have to consider tower sharing and sales in order to contain costs . In addition, w ider economic implications will weigh on our Risk/Reward Index.
Puerto Rico had its telecoms infrastructure severely impacted by HurricanjdjdjHurricane Maria's passage through the Caribbean. The Federal Communications Commission (FCC) reported over 95% of tower sites in Puerto Rico were left inoperative. The catastrophe has also incurred more moderate material losses in adjacent territories like the US Virgin Islands, where almost 77% of tower sites were reported to be offline. Massive reconstruction efforts will be needed to restore the country and the telecoms market to business as usual.
We expect operators' financials to bear the brunt of material losses in the short term, diverting investment away from more lucrative activities such as the development of advanced, premium services. Furthermore, there will be some short-term barriers to players' abilities to return to normal operations.
Subscriber Base Stable As People Downgrade Their Plans Puerto Rico - Mobile And 3G/4G Forecasts f = BMI forecast. Source: JRTPR, BMI
This article is part of our Americas coverage. To access this article subscribe now or sign up for free trial