MTN May Sell Off Nigerian Mobile Tower Networks
Talks of South African telecoms company, MTN’s sale of its mobile tower networks in Africa, which is in line with the company’s asset optimization plan, have again emerged with its Nigerian towers being next in line.
The telecoms company, which has presence in a number of high growth markets in Africa, has been selling off its towers within the region in line with a strategy to reduce infrastructural costs.
In December, it sold a total of 1228 network towers in Rwanda and Zambia to tower company, IHS Holdings for an undisclosed amount after parting with a total of 1758 towers in Cameroun and Ivory Coast for $284 million to the same company in 2012.
Inaccessible roads to rural areas, high security costs and the epileptic supply of power on the continent are the reasons MTN is disposing of the towers, saying they are expensive to maintain.
With about 9,000 towers in Nigeria, which accounts for more than a quarter of the group’s total subscriber base, the sale will probably fetch more money. Although the details of the deal is not clear, as no official statement has been made, the worth of the towers MTN wants to dispose of in Nigeria is estimated at $1 billion.
Free from tower maintenance costs, the telecoms company would perhaps focus on its products and services and hopefully improve quality services it offers to its subscribers across the continent.