Brookfield-led consortium seals $2.5bn deal to acquire American Tower’s India operations

A consortium led by Brookfield Asset Management has completed the acquisition of American Tower Corporation’s operations in India for a staggering $2.5 billion. This acquisition, one of India’s largest telecom infrastructure deals, sees Brookfield become the largest telecom tower operator in the country, overtaking Indus Towers. The deal also signifies American Tower Corporation’s exit from the Indian market. The acquired portfolio includes approximately 77,000 towers previously managed by American Tower, which will now be under the purview of Brookfield’s Data Infrastructure Trust (DIT).

A major shake-up in India’s telecom infrastructure

With this acquisition, Brookfield Asset Management, through its domestic associate Data Infrastructure Trust, is now managing over 230,000 towers in India. The purchase adds significantly to the nearly 157,000 towers already under DIT’s control, creating a colossal telecom network that serves India’s top telecom operators, including Bharti Airtel and Reliance Jio. The acquisition is expected to diversify DIT’s revenue streams by expanding its business reach to all major mobile network operators in India, offering significant growth opportunities.

Brookfield noted that the acquired sites are expected to diversify DIT’s revenue and enhance its touchpoints with all mobile network operators in India. The acquisition aligns with Brookfield’s strategy of scaling its presence in the telecom sector and driving growth through strategic infrastructure investments. The transaction is set to conclude in the latter half of 2024.

Brookfield’s growing footprint in India

This acquisition marks Brookfield’s third telecom-related acquisition in India in just four years, underlining its aggressive expansion strategy in the region. Brookfield’s consistent investments are a response to the growing demand for telecom infrastructure amid India’s digital revolution. As India continues to digitise at a rapid pace, the need for robust and scalable telecom infrastructure has never been greater.

According to a statement, the acquired sites are anticipated to diversify DIT’s revenues and increase interaction with mobile network operators in India. In the fiscal year ending March 2023, Data Infrastructure Trust reported revenues of Rs 111 billion (approximately $1.33 billion), showcasing its significant presence in the telecom tower market.

Expert opinion: What this means for India’s telecom sector

Industry experts view this move as a significant reshuffling in India’s telecom infrastructure landscape. Brookfield’s entry as a major player in telecom infrastructure is likely to trigger a new phase of consolidation and competition. With American Tower’s exit and Brookfield’s aggressive approach, we could see more strategic partnerships and mergers in the sector. The enhanced scale of operations also puts Brookfield in a strong position to leverage economies of scale, drive down costs, and negotiate more favourable deals with telecom operators.

This acquisition could also create a ripple effect, prompting other global investment firms to consider similar moves in India’s telecom sector, which continues to attract attention due to its growth potential and strategic importance.

Implications for American Tower’s exit from India

American Tower Corporation’s exit from India reflects a shift in the global strategy of telecom tower companies. The company had faced increasing competition and regulatory challenges in the Indian market, which likely influenced its decision to divest. With Brookfield taking over, the focus will now be on optimising the newly acquired assets and driving growth in one of the world’s most competitive telecom markets.