Airtel inks pact to divest 950 towers in Congo

By May 5th, 2016 AT 11:30 PM

Bharti Airtel Thursday said that it will divest about 950 towers in Democratic Republic of Congo to Helios Towers Africa (HTA). The divestment also includes towers currently under construction in the DRC. The move is aimed deleveraging by reducing debt and ongoing capital expenditure, and turn profitable in the region. Further, the agreement will allow Airtel to focus on its core business and customers.

tower-india

Christian De Faria, Executive Chairman, Bharti Airtel International Netherlands BV (BAIN) said, “We are pleased to strengthen our partnership with HTA in Africa. The agreement is in line with our stated philosophy of divesting passive infrastructure and promoting sharing of towers to enhance operational efficiencies that will further the growth of telecom services. Airtel remains committed to DRC and will continue to invest in its operations and serve customers with world-class services.”

The deal will significantly reduce Airtel’s ongoing capital expenditure on passive infrastructure and also mitigate the proliferation of towers through enhanced sharing. The divestment deal with Airtel will allow HTA expand its tower coverage in Africa to over 6,500 owned towers. The deal follows Airtel’s and HTA’s strategies to drive cost efficiencies throughout the industry, the promotion of passive infrastructure and to mitigate against the proliferation of towers.

As part of the agreement, Airtel will have full access to the towers from HTA under a long term lease contract. HTA is solely focused on providing telecoms infrastructure solutions which help its customers to achieve their goals such as reducing operating cost, improving network uptime, preserving capital, focusing on their core business, and mitigating the proliferation of towers through infrastructure sharing, as they expand network coverage and capacity to meet the growing demand and improve quality of telecom service.

The agreement is subject to statutory and regulatory approvals in the respective countries.

Kash Pandya, Chief Executive Officer of Helios Towers Africa, “HTA is proud to be chosen by Airtel as its partner for the ownership and management of its existing infrastructure. This is a ground-breaking move for HTA, and Airtel’s decision is a significant endorsement of HTA’s reputation, management team and operating track record.”

Read more on:

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

Leave a Reply

avatar

Recent Posts

Vodafone Idea Plans to Sell its Mobile Towers and Optical Fibre Assets for Rs 20,000 Crore: Report

Vodafone Idea is likely to mop up about Rs 20,000 crore from its proposed stake sale in mobile tower firm...

Best DTH Provider After New Trai Mandate: Tata Sky, Airtel Digital TV, D2h or Sun Direct?

The new direction regarding the prices in the TV industry passed by Trai last year took the DTH industry by...

Bharti Airtel Rs 100 and Rs 500 Talk Time Recharges are Back Again for Prepaid Users

The removal of talk time recharges from Vodafone Idea’s and Bharti Airtel’s portfolio was met with hostility by the subscribers....