Airtel mobile operator to sell 1,350 telecom towers to american company to promote towers sharing and support sector growth
Bharti Airtel Limited (Airtel), a Tanzania based telecommunication
services company, has recently reached an agreement with American Tower
Corporation (NYSE:AMT), an independent owner, operator and developer of
wireless and broadcast communication real estate, for the sale of 1,350
telecom-towers in Tanzania with the possibility to acquire up to 100 additional
units that are currently in development.
The agreement seeks to reduce Airtel’s investment in passive
infrastructure assets and to promote towers’ sharing to improve operations’
efficiency that will support overall telecommunications sector growth in
Tanzania.
The deal reached between both companies regarding
telecom-infrastructure in Tanzania, follows a prior agreement signed in 2015 by
Airtel for the sale of 4,700 mobile phone towers in Nigeria worth USD 1.05
billion according to Zacks Investment Research.
With the second agreement, Airtel is pleased to strengthen its
cooperation with American Tower and also confirms its commitment with
Tanzania’s population to improve its operations and bring a world-class
service, explained Bharti Airtel Africa MD & CEO, Mr. Christian de Faria.
Airtel is one of the leading companies in the world and Tanzania’s
Telecommunication sector, which0 with
a young and fast growing population represents a great market potential and
attractive opportunity, explained American Tower EMEA EVP & President, Mr.
Hal Hess.
According to Airtel, this and prior agreements will help the
company to focus on its core business and customers as support debt reduction
and capital expenditures (CAPEX) to support expansion in Tanzania.
Airtel is the second largest mobile operator in Tanzania totaling
10.8 million subscribers representing 30% of the market share as of September,
2015, behind Vodacom with 12.5 million subscribers or 35% of the total market
share according to the Tanzania Communications Regulatory Authority (TCRA).
According to Reuters, the nearly 36 million subscribers market in
Tanzania has a potential to reach 45 million within the next years.
Tanzania currently has a mobile penetration level of 67% which is
below the Sub Saharan region’s average of 71.1% according to the World Bank.
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