TowerGrid Australia
Case Prompt
TowerGrid Australia is a cell tower company in Australia which leases space on its towers to wireless providers (i.e. Telstra, Optus, etc.) who install their respective antennas / technology on its towers. With the advent, and expansion, of 5G+ across the country, TowerGrid Australia is locked into a contract to upgrade its suite of towers to support 5G+ technology and now needs a strategy to grow its business to cover the cost of upgrading its towers.
Case Background
Client/Company information
- Leasing to wireless providers is currently TowerGrid Australia's sole form of revenue
Industry/Competition information
- Fragmented market overall with new competitors entering the market and providing rental space on towers for a fraction of TowerGrid Australia’s price; eroding the margins on these types of leases
- Wireless providers are also pursuing their own tower builds to minimize costs
Product information
- TowerGrid Australia has ~20K towers across Australia (note to interviewer: this is not critical to case)
Value Chain/Revenue information
- Rental space is charged per antenna installed by the lessee; each antenna can support service to a certain number of households so at times the lessee needs multiple antennas to support service to all of its customers in a given area
Any constraints on the case
- The contracts and costs to upgrade the towers have already been signed and are therefore not negotiable at this point
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