“Do we build cheaper, low capacity, single tenant towers, spreading our investment for a wider footprint?” Asks Rabacal, “or do we invest two and a half to three times as much in multi-tenant sites with more expensive generators? And how do we balance that with the cost of installation in rural areas, areas where we might need to be efficient enough to serve a $10 per week ARPU environment?”
Should tower portfolios in Africa be built with sharing in mind? Warid’s network rollout was co-ordinated with Orange from the outset, yielding a solid tenancy ratio (and a good sale price) when the towers were sold to Eaton.
But Uganda may be the exception rather than the rule. While operators may be building multi-tenant towers with a view to future capacity, particularly in urban areas with growing data traffic and higher ARPUs, few network planners will commit additional capex without a clear indication of future revenue streams. The revenue forecasts get increasingly difficult, and the installation and operational costs increase, as one moves into rural areas increasingly beyond the reach of transport infrastructure.
