African tower company Eaton Towers has signed a 10-year contract to take over the operations and co-location management of 750 telecom towers for Vodafone Ghana.
The company says, over the duration of the contract, it expects to invest up to $80 million on upgrading and improving the existing towers and on improving Vodafone's coverage in Ghana.
It will also develop the existing infrastructure and build new towers.
The agreement also enables Eaton to sell co-location and shared-infrastructure facilities to other mobile operators, generating future revenue from separate long-term contracts, it adds.
“Tower sharing is a more cost-effective way for African operators to reach subscribers, with building and operating costs typically shared across multiple tenants.”
Eaton says that, by outsourcing the management of its towers, Vodafone Ghana will immediately benefit from cost savings and significantly reduced capital expenditure.
“This agreement is good for everyone involved. Our co-location offering ensures Vodafone's infrastructure will continually improve, while maintaining the lowest possible operating costs,” says Eaton CEO Alan Harper.
He adds that the tower-sharing agreements will enable Ghana's mobile operators to reduce costs and reach more subscribers, while avoiding the environmental impact of duplicating towers.
“Most importantly, through our investments, and sharing of towers, Ghana's mobile subscribers will benefit from better coverage and operators having a lower cost base - and that is good for economic growth and sustainability.”
Eaton says it will assume responsibility for all operational aspects of the passive infrastructure, including health and safety, security and power provision. Upgrades to the existing sites will include new power generation equipment and advanced management systems aimed at reducing diesel consumption and other costs.
Sharing Africa
Harper adds that there are plans to extend the business further across Africa. “In due course, a number of additional branches will be opened in countries offering substantial growth potential.”
Eaton opened a branch in SA this year and most recently rolled out in Tanzania, giving the country its first independent tower company.
“Mobile operators across Africa are seeking to reduce the cost of a network roll-out. Tower sharing can help them to reduce their asset base, capex and operating costs, allowing them to focus on increasing their coverage and the roll-out of new services to customers,” says Harper.
The company was founded last year with the intention of catering for the growing move towards tower sharing on the continent.
It plans to own and operate passive telecommunications infrastructure assets across Africa. Eaton's senior executives have spent the previous 15 years building telecoms operators in Africa.