Vodafone Ghana outsources telecom tower management

 Vodafone Ghana has outsourced the operation and management of 750 telecom towers to Eaton Towers on a ten-year contract...

Vodafone Ghana has outsourced the operation and management of 750 telecom towers to Eaton Towers on a ten-year contract.

Over the life of the contract Eaton expects to invest up to $80 million on upgrading and improving the existing towers and on improving Vodafone’s coverage in Ghana. Eaton 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 revenues from separate long-term contracts.

Tower sharing provides operators with an efficient means of reducing capital expenditure and operating costs by co-locating antennas on the same tower - building and operating costs are typically shared across multiple tenants. This allows operators to reach subscribers in remote areas, and is also beneficial to the environment in that it reduces the unnecessary duplication of masts and their associated infrastructure.

According to a study by the TMT advisory firm Delta Partners, there are 200,000 towers in the Middle East and Africa. Towers in MEA are expected to increase by 50% in the next five years, but Delta Partners estimates that $8bn of cumulative CAPEX could be saved by tower sharing agreements.

Eaton 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.

Alan Harper, Chief Executive of Eaton said: “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. We plan to bring the benefits of tower sharing to operators and subscribers across Africa.”

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