''We expect continued growth... as mobile operators, building out and strengthening their third and fourth generation (3G and 4G) footprints, will seek to lease tower space and sell more of their own towers," Moody's Assistant VP and Analyst, Nidhi Dhruv said in a statement.

We expect overall year-on-year revenue growth of about 8-10 percent for tower operators in India during the next one to two years, Dhruv added.

In its report on Indian and Indonesian telecom tower companies, Moody's said mergers and acquisitions as well as consolidation are likely to happen in both markets during the next two to three years.

Moody's said Indian tower companies have significantly larger scale, when compared with their Indonesian counterparts.

Indian tower companies have stronger operating metrics and balance sheets but lower profitability.

"India allows up to 100 percent foreign ownership of tower companies, but regulators have proposed reducing that level to 74 percent. The approval process for the deployment of new towers is complex and time-consuming in both countries," the agency added.

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