QMC Telecom upbeat about ‘second wave 5G’ opportunities

Brazil's telecom sector has moved "sideways" in recent years, amid complex consolidation processes and doubts over the 5G auction, but it is now about to enter a new cycle of investments by carriers to densify the new technology.

That is the opinion of Murilo Almeida (pictured), country manager for Brazil at Puerto Rico-based neutral host QMC Telecom.

“All those uncertainties have now dissolved in a way. We're entering a new beginning, a new investment cycle in the telecom market,” Almeida told BNamericas, adding that QMC Telecom has managed to double in size in recent years.

Since the end of last year, operators have been increasing investments in different infrastructure solutions and the prospects for the infrastructure market are very interesting, according to the executive.

“The first wave of investments in 5G is taking advantage of existing towers and macro antennas. The operator uses its grid for 4G and places equipment to transmit 5G. But 5G frequencies are higher, so the range is more limited. As a result, they need to densify this network with more coverage points,” said the executive. "This is where we go now."

QMC has street-level solutions (SLS), distributed antenna systems (DAS) and towers in all the countries in which it operates in the region: Mexico, Colombia, Puerto Rico Peru, Chile and Brazil.

The equipment is not proprietary and the company imports products from various different manufacturers.

Globally, QMC has more than 3,400 assets installed, according to Almeida. 

The executive claims that QMC is a leader in the market of indoor solutions. In Brazil alone, it has several dozen projects in the design phase focused on extending indoor 5G coverage.

The company's indoor focus is mostly on shopping malls, in addition to hospitals, hotels and airports. 

According to the executive, QMC is also in talks for supplying private network projects, via carriers or integrators.

QMC provides infrastructure for Brazil's three largest mobile operators – Telefônica Brasil, Claro and TIM – as well as Algar Telecom. In Latin America, the parent companies América Móvil and Telefónica, among others, are also customers. 

QMC also has contracts with internet service providers that have acquired licenses in Brazil to provide mobile services, and has held talks with dozens of other players, according to Almeida. The expectation is that these contracts may advance in the coming months.

In the broader neutral host segment, the company competes with firms such as American Tower, SBA, IHS and Highline.

For now, however, QMC is not considering entering other infrastructure segments, such as fiber, as American Tower or IHS have done.

M&A 

Asked about acquisition opportunities in the segment, such as new Oi tower assets that could be sold, Almeia said that QMC's focus has traditionally been organic expansion, although the company is naturally looking for acquisition opportunities.

Highline, QMC's rival in the sector, has acquired towers from Oi's mobile and fixed assets in the past.

“QMC's DNA is organic. I'd say that about 98% of our assets were assets that we implemented, built-to-suit ones. Not only they are built-to-suit, but we are built to last,” he said.