- The strategy of the mobile network operators in Africa was to build their own towers and other infrastructure. Currently Mobile network operators like Airtel Africa are shifting to leasing towers from independent providers.
The strategy of the mobile network operators in Africa was to build their own towers and other infrastructure. The companies had to spend heavily on annual maintenance and up gradation of these facilities. Currently Mobile network operators like Airtel Africa are shifting to leasing towers from independent providers. International Finance Corporation (IFC) which funds Airtel Africa, has disclosed that the company plans to cut down ownership in tower infrastructure in the continent. Instead it will opt for leasing. The existing infrastructure owned by the company will be put on sale. The trend among telcos is to share infrastructure built by independent parties, to cut their capital expenditure.
In its investment disclosure, IFC stated that Airtel Africa’s strategy will be to focus on an asset-light business model. It has already divested most of its telecommunications tower portfolio and is in the process of divesting in its remaining tower portfolio. Only a limited number of strategic tower sites of about 2,500 are being maintained by Airtel Africa. It engages Independent telecommunications tower companies to expand its network on two models. IFC is also funding a new entrant in the Kenyan telecommunications towers business. Atlas Tower Kenya is investing $ 48.9 million (Sh5.6 billion) to install the 4G towers.
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