Orange has dispelled recent reports that it is looking to sell its 600 towers in Kenya, but the company is looking to outsource management and build new towers in the country, according to a source.
In a statement to TelecomFinance, Orange said that its…
Orange has dispelled recent reports that it is looking to sell its 600 towers in Kenya, but the company is looking to outsource management and build new towers in the country, according to a source.
In a statement to TelecomFinance, Orange said that its subsidiary Telkom Kenya had recently launched a consultation aiming to accelerate the deployment of its mobile network, but “it should be noted that the project does not include the divestment of existing towers.”
A source with close knowledge of the project told TelecomFinance that Telkom Kenya has invited companies to bid for a contract to manage its existing towers and build new ones for them, rather than sell its existing towers.
“I expect that they will shortlist two or three of the companies who have submitted bids in the next month or so,” he added.
A telecoms banker familiar with the Kenyan market commented that Orange had held talks with a number of players in the past about tower assets in the country.
The banker also implied that selling towers might be difficult in Kenya, arguing that leading operator Safaricom was opposing infrastructure sharing because the company sees its own network a competitive advantage. As towercos rely on sharing assets among several operators, an outright sale and lease back deal would be less promising for towercos if a major competitor like Safaricom refused to participate in tower sharing.
While Orange would not confirm details of its consultation, it said in the statement: “the Group examines closely any opportunity to share passive network infrastructure – including both towers and power sources – with other operators and, if appropriate, with the support of specialist companies.”
