Profitable Telecom Infrastructure Company Investment Opportunity in Goa, India

We are in the business of Built, Operate and Maintenance of Telecommunication Tower which inter alia includes telecom post and other allied telecom equipments to various wireless services operating company in India. We only recently started our operations after obtaining Infrastructure Provider Category -1 license from Department of Telecommunication, Ministry of Telecommunications & IT. The business owner has more than 10 years experience in similar field and has worked with a telecom major in the past. The last reported revenue is only the Electrical infra installation work which we were doing for the towers. Our big push in revenues will kick in 2016, were we are likely to touch Rs 1 CR in revenue by then. We have excellent reputation with the telecom companies.

We construct the mobile towers and enter in an agreement directly with the landowner for the portion of the space we will be utilizing for the tower. The tower asset belongs to us and we lease it to the telecom companies for which we receive rent. These agreements are long term in nature which are valid for 20 years. We receive advance rent for each quarter. We receive rent, infrastructure cost and fuel & maintenance expenses from telecom operator.

For the shared tower, we install antennas for each operator. If 4 operators share a tower, we receive rent from each one of them, making the specific tower highly profitable. We are working with PAN India telecom majors and are in talks with a company which is going to enter telecom space in a big way. The capex for tower business is high but thereafter it runs on a very low cost. We spent anywhere between Rs. 10 Lakh - Rs 35 Lakh to construct a tower based upon the area and height. If 3 operators share the tower, we break-even in 2.5 - 3 years and if 4 operators are sharing the tower, we break-even in 2 years.