VODAFONE GHANA OUTSOURCES TOWER MANAGEMENT TO EATON TOWERS - Co-location deal reduces costs, improves and widens coverage with $80m investment
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.
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.
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.
Eaton will assume responsibility for all operational aspects of the passive infrastructure, including health and safety, security and power provision. Upgrades to the existing sites will include new power generation equipment and advanced management systems aimed at reducing diesel consumption and other costs.
Alan Harper, Chief Executive of Eaton said:
“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.
“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.
“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.”
This article was originally posted on West Africa Business Communities