One of Nigeria’s foremost telecommunication service providers, MTN Nigeria, has reached an agreement in principle with IHS Holding Limited for the outsourcing of its towers business, comprising up to 9,151 mobile network towers.
It was gathered that the transaction would reduce MTN Nigeria’s operating costs, drive network efficiencies and further expand its voice and data capacity.
The Tide source learnt that under the terms of the transaction and subject to requisite regulatory approvals, the 9,151 towers would be transferred to a new company, which will be owned jointly by MTN and IHS.
MTN disclosed that IHS would have full operational control of the underlying business, while the new towers company would market independent infrastructure sharing services to other mobile operators and Internet Service Providers in the country.
The transaction is expected to close in the fourth quarter of this year.
The telecoms company stated that it took the decision to transfer its towers business to IHS in order to further raise service levels for its customers in the country.
The Group President and Chief Executive Officer, MTN Group, Sifiso Dabengwa, said, IHS’ deep knowledge and considerable experience in the sector would help drive efficiencies and enhance the company’s network uptime.
“This will allow us to concentrate on further raising our own service levels, improving the customer experience and ensuring that we remain the number one operator in Nigeria,” Dabengwa said.
This is the ninth tower transaction for IHS and its fifth with MTN following previous transactions in Cote d’Ivoire, Cameroon, Rwanda and Zambia that took place in 2012 and 2013.
Industry players stated that on completion of the transaction, IHS would manage over 20,000 towers in Africa.
The Chief Executive Officer, MTN Nigeria, Michael Ikpoki, said, “The separation of MTN Nigeria’s mobile network towers and operation of the underlying towers business by IHS reflects a major part of our strategy to optimise network quality and technological assets towards creating value and driving innovation to meet our customers’ needs now and in the long-term.
“Indeed, the trends and realities in our industry reveal the increased role of cost efficiency and optimisation of assets in guiding business decisions in order to remain competitive.”
Ikpoki gave an assurance that MTN would continue to embrace strategies that would enhance its services.
to customers, while ensuring long-term business continuity without compromising best practice.
In addition, the MTN Nigeria CEO said further investments would be made into IHS’ centralised Network Operations Centre in Nigeria to optimise operations and increase IHS’ market leading network uptimes of over 99 per cent.
“There will also be sustained investments in energy efficiency through the deployment of advanced generators, batteries and alternative power solutions to reduce diesel consumption,” Ikpoki added.
IHS anticipates creating a considerable number of technical and engineering direct and indirect employment opportunities to be sourced locally in Nigeria.
The Chief Executive Officer, IHS Holdings, Issam Darwish, said the idea to source locally for labour is “significant and transformational agreement for HIS.”