In This Article:
IHS Holding Limited IHS and Anterix Inc. ATEX are two prominent names operating in the communication - infrastructure industry. As rivals, both companies are engaged in providing wireless communication solutions to mobile network operators, internet service providers and private corporations. Both companies have been enjoying significant growth opportunities in the telecom services industry due to the growing demand for scalable infrastructure for seamless connectivity with the wide proliferation of IoT, transition to cloud and accelerated 5G rollout. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for IHS Holding
Headquartered in London, the United Kingdom, IHS is one of the largest independent owners, operators and developers of shared communications infrastructure in the world by tower count. The strongest driver of IHS’ business at the moment is its growing presence across emerging markets in Africa. Growth in demand for its critical infrastructure that facilitates mobile communication coverage and connectivity from mobile network operators has been driving its performance of late.
The company’s revenues of $1.7 billion increased 48.1% year over year on an organic basis, driven by growth in revenues from colocation (average number of tenants per tower), lease amendments and new sites.
IHS is well-positioned to leverage its market-leading position and capitalize on the increasing demand for communications infrastructure solutions, supported by continued 5G deployment across Nigeria. Exiting 2024, the company’s total number of towers in its largest market, Nigeria, was 16,495, reflecting an increase of 0.6% year over year.
Strong momentum across its SSA market (comprising South Africa, Cameroon and other countries), driven by the addition of new tenants and higher revenues from colocations and lease amendments, also bodes well for the company. IHS added approximately 100 towers and more than 800 tenants across the SSA market in 2024.
The company’s focus on building new infrastructure, along with its investment in BTS and fiber connectivity, will likely generate more colocation opportunities. These technologies, along with the growing popularity of 5G across sub-Saharan Africa and Latin America, are expected to drive demand for IHS' towers, which hold promise for its growth.
The Case for Anterix
Based in Woodland Park, NJ, Anterix is a leading wireless communications firm. ATEX is benefiting from the solid demand for its transformative broadband solutions from utility and critical infrastructure customers, with growth in the deployment of private broadband networks. As the largest licensed spectrum holder in the 900 MHz band across the United States, the company is witnessing strength across several end markets, including energy, transportation and others.
Anterix expects to monetize its spectrum assets to generate long-term value. Lower Colorado River Authority is set to purchase an additional 900 MHz spectrum wireless broadband license to support its growth initiatives in the Texas region.
In January 2025, the Federal Communications Commission (FCC) approved the Notice of Proposed Rulemaking to modify the existing 900 MHz broadband rules. The adoption of the proposed rules will enable the company to expand to 5/5 MHz from the current 3/3 MHz. This spectrum expansion will help to meet the increasing demand for wide-area, private wireless broadband networks for the utility sector and other business entities. Anterix’s portfolio is expected to gain from the proposed expansion of the 900 MHz spectrum.
However, the escalating operating costs and expenses pose a threat to ATEX’s bottom line. In the first nine months of fiscal 2025, the company’s operating expenses increased 8.6% year over year. It incurred high costs and expenses related to sales, product development and severance and other related charges.