Vodafone Ghana in tower management deal
London, October 6, 2010
Eaton Towers, the African tower company, has signed a 10 year contract to take over the operations and co-location management of 750 telecom towers for Vodafone Ghana.
Over the life of the contract Eaton expects to invest up to $80 million on upgrading and improving the existing towers and on improving Vodafone’s coverage in Ghana. Eaton will also develop the existing infrastructure and build new towers, said a top official.
The agreement also enables Eaton to sell co-location and shared-infrastructure facilities to other mobile operators, generating future revenues from separate long-term contracts, remarked Alan Harper, chief executive of Eaton.
"This agreement is good for everyone involved. Our co-location offering ensures that Vodafone’s infrastructure will continually improve, whilst maintaining the lowest possible operating costs," Harper noted.
"Furthermore, our tower-sharing agreements will enable Ghana’s mobile operators to reduce costs, reach more subscribers and avoid the environmental impact of duplicating towers," he added.
Tower sharing is a more cost-effective way for African operators to reach subscribers, with building and operating costs typically shared across multiple tenants.
By outsourcing the management of its towers, Vodafone Ghana will immediately benefit from cost savings and significantly reduced capital expenditure.
According to him, Eaton will assume responsibility for all operational aspects of the passive infrastructure, including health and safety, security and power provision.
“Most importantly, through our investments, and sharing of towers, Ghana’s mobile subscribers will benefit from better coverage and operators having a lower cost base – and that is good for economic growth and sustainability. We plan to bring the benefits of tower sharing to operators and subscribers across Africa,” Harper added.-TradeArabia News Service