Namibian mobile operator, Mobile Telecommunications Limited (MTC) is bucking a developing industry trend of telecom tower spin-offs, choosing to keep its infrastructure in-house as some operators across Africa restructure assets.
Across Africa’s fast-growing telecommunications sector, mobile network operators have increasingly separated their tower infrastructure into standalone companies. It is a strategy designed to unlock capital, improve efficiency and encourage infrastructure sharing.
But not all operators are convinced, and some are now reconsidering the approach.
MTC Corporate Affairs Manager John Ekongo yesterday stressed that the Namibia Securities Exchange-listed firm is among those taking a cautious stance. “At the moment, MTC does not have such a consideration. However, we do not rule out its future possibility,” he said.
Tower spin-offs are widely seen as one way to free up capital that operators can reinvest into network expansion, particularly for 4G and 5G services.
In Namibia, however, the model is already in place through Telecom Namibia’s subsidiary PowerCom. Established in 2007 and later acquired by Telecom Namibia in 2013, PowerCom builds and manages towers that can be shared by mobile operators, broadcasters and ISPs.
Across Africa, several operators have embraced the asset-light model by selling or separating their towers. In South Africa, Cell C sold thousands of towers as part of a major restructuring that shifted the operator towards a roaming-based network model. Pan-African giant Vodacom has also explored spinning off its roughly 9 500 base stations into a separate infrastructure business while retaining strategic control.
MTN Group, Africa’s largest mobile operator, took a different turn this year by announcing plans to buy back the remaining stake in tower company IHS Towers in a deal worth about $2.2 billion.
Share