This report describes and analyzes when and how tower outsourcing/sharing agreements are likely to emerge in the African telecommunications markets. After explaining the logic of tower sharing in different types of markets depending on their prospects of value creation and competitiveness, the report brings evidence from some of the prominent sale-and-leaseback deals that have taken place in Ghana, DRC and South Africa. Since most of these deals are new, Pyramid has yet to observe in which directions they may ultimately develop. Yet, by offering early insights on our expectations, we hope to guide both mobile operators and tower companies in assessing their current situation and the best course of action.
Introduction
Paths From Tower Sale-and-Leaseback Agreements to the Cost Savings From Tower Sharing Will Not Be Uniform
A. Fewer privileges to mobile operators from independent tower companies can drive tower sharing in low-penetration markets
B. In high-penetration markets, towers may be duplicated if prospects of network upgrades are imminent
C. Operator-sponsored tower companies can work if new value creation potentials are low or to challenge strong competitors
Market Detail
Case Study: Tower sale-and-leaseback agreements turn into islands of exclusive partnerships in Ghana … for now
Case Study: An opportunity in DRC: Tigo goes down the rabbit hole with Helios toward expansive tower sharing
Case Study: In the midst of HSPA+ upgrades and LTE trials, South African operators hold on to their network assets
Conclusions
Key Findings
Recommendations
Related Resources
Paths From Tower Sale-and-Leaseback Agreements to the Cost Savings From Tower Sharing Will Not Be Uniform
A. Fewer privileges to mobile operators from independent tower companies can drive tower sharing in low-penetration markets
B. In high-penetration markets, towers may be duplicated if prospects of network upgrades are imminent
C. Operator-sponsored tower companies can work if new value creation potentials are low or to challenge strong competitors
Market Detail
Case Study: Tower sale-and-leaseback agreements turn into islands of exclusive partnerships in Ghana … for now
Case Study: An opportunity in DRC: Tigo goes down the rabbit hole with Helios toward expansive tower sharing
Case Study: In the midst of HSPA+ upgrades and LTE trials, South African operators hold on to their network assets
Conclusions
Key Findings
Recommendations
Related Resources
