Leadcom’s experience in building 83 sites (concurrently!) in Myanmar for Apollo

Ofer Ahiraz knows telecom towers. Having moved over from leading Motorola’s early participation in Africa’s first cellular networks, Ofer, one of the founders of Leadcom has been in leadership positions at Leadcom Integrated Solutions since 1998, taking a hiatus to work with BeeLine on their rollout in Cambodia. Ofer’s experiences in Southeast Asia contributed to his enthusiasm to engage in ‘the last greenfield rollout’ in Myanmar, where Leadcom is a key strategic partner of Apollo Towers, for whom they are building 300 sites in the initial rollout phase.

TowerXchange: Please reintroduce us to Leadcom for new readers not familiar with the company.

Leadcom Integrated Solutions (Leadcom) is a market leader in the provision, management, and implementation of telecommunication network deployment services and solutions for pan-regional operators, towercos, vendors, and major enterprises. Leadcom has over 20 years of experience and an extensive track record of successfully completing numerous telecommunication infrastructure projects, worldwide.

In July 2014 Leadcom was acquired by Lightbridge Communications Corporation (LCC), the largest independent telecom services company in the world. LCC have assembled a suite of network planning and network performance optimization capabilities, tools and software that constitute a high end offering to clients. Adding Leadcom to LCC’s portfolio expands the combined entity’s geographical footprint, and adds Leadcom’s renowned and proven capabilities in tower supply and build.  In FY2014, the combined companies will generate US$420mn in revenues with 5,200 employees across 51 countries.

TowerXchange: What does Leadcom’s project in Myanmar consist of?

Leadcom is one of four strategic partners of Apollo Towers Myanmar (editor: the others being Camusat, GTL and iEngineering). We are supplying and building 300 cell sites in the current initial phase of the Apollo’s rollout for Telenor Myanmar, consisting initially of sites in Mandalay, Yangon and Naypyidaw. We’re building 83 towers and rooftops concurrently, so it’s a very intensive project!

At the same time we will be implementing Flexenclosure eSites where appropriate, and installing BTS for Ericsson.

TowerXchange: What is Leadcom’s footprint on the ground in Myanmar?

We have around 50 staff on the payroll in Myanmar, around half of whom are locals. We brought in a head of engineering and logistics manager from companies we had worked with in the past in Cambodia.

TowerXchange: Has Leadcom provided vendor finance?

We felt the opportunity in Myanmar was so exciting that we made an exception to our usual rule to merely supply towers and construction services, and provided a degree of vendor financing.

One of the leading European banks is Leadcom’s major bank, and when we initially approached them about doing business in the country, they had Myanmar blacklisted. But Apollo Towers and Leadcom were able to produce documentation to demonstrate that Myanmar was indeed open for business and that sanctions had been lifted, so they removed the country from the blacklist, not just for Leadcom but for all their clients!

TowerXchange: What has been your exposure to importing equipment and permitting new sites?

Apollo Towers have the necessary license, so they lead the import activity. Clearing customs can sometimes be a smooth process, but can also take weeks. It’s getting better as we get used to the process.

Leadcom focuses on our core business of supplying and building towers – Apollo does the site acquisition and permitting work but we have direct experience of dealing with the YCDC who supervise build permitting. They approve towers and analyse rooftop installations to ensure safety. They have to send their own appointed local engineer to approve sites, which can sometimes result in delays.

TowerXchange: Forgive the direct question, but have you encountered any problems with corruption in Myanmar?

We haven’t encountered any instances of corruption. No-one has had their hand out.

The challenge is not corruption, but rather the slow pace at which things get done in Myanmar.

TowerXchange: Are the towercos going to default to building multi-tenant towers in most instances, even though they start out as single tenant towers?

Myanmar’s tower companies are smart – they know it’s only slightly more expensive to install a tower with spare capacity for extra tenants compared to a single tenant tower, and it’s certainly cheaper than upgrading post-installation. They may also install power solutions that are ready for a second tenant, but it’s easy enough for a managed service provider like Leadcom to later swap diesel gensets to ensure energy efficiency with right-sized power solutions.

TowerXchange: How has the rainy season impacted the rollout?

Myanmar’s prodigious rainy season has created additional challenges, but they can be overcome by using our experience and techniques.

For example, when we return to sites surveyed in March, April and May, some are now under a meter of water! This wasn’t a surprise because our surveys had indicated the sites were prone to flooding, and we will be installing many elevated sites, but it’s difficult to commence civil works when the soil is sodden!

TowerXchange: How do you see the rollout evolving in Myanmar?

As naturally in phase one and two of the rollout the MNOs are looking to cover the main cities and roads, the real logistical challenges will come in phase three when the rollout extends deeper into rural areas. That’s when we’ll have to work out how to get tens of tonnes of steel and construction materials across a weak bridge!

The majority of the funding for the Myanmar rollout is being deployed by the towercos and their vendor finance partners; it might cost more them US$100,000 to build a green field cell site, and the towerco has to buy and will own everything – all the MNOs have to provide are the BTS’s, and they in turn can secure vendor financing from the manufacturers.

TowerXchange: How does Leadcom’s Myanmar project compare with its typical African projects?

The Myanmar rollout is a significant project by today’s standards. Back in 2006-8 we were regularly securing POs for 50, 75 and even 100 towers at a time from Tigo, Celtel et cetera. But there aren’t rollouts of that scale currently in Africa. It’s true that Myanmar may be the last green field rollout, worldwide.

TowerXchange: What would be your view of a potential ESCO opportunity in Myanmar?

It’s too soon for an ESCO in Myanmar. No-one has enough experience of operating sites outside the big cities, so there would be too many unknowns. As such, a Myanmar ESCO is an opportunity only for those with deep pockets and considerable risk tolerance.

TowerXchange: Finally, what’s new at Leadcom in Africa?

Having worked successfully with IHS in Cote d’Ivoire, we’ve just opened an office in Cameroon and have commenced our first site audits and tower upgrades for them. We’re undertaking a substantial program across IHS’s sites in Cameroon and Cote d’Ivoire to replace power cabinets, making sites more efficient and autonomous to improve SLAs.

Meanwhile, we are supporting Helios, Eaton and ATC opcos in Ghana and Uganda in tower maintenance and strengthening and the engineering and turnkey implantation of their first multi-tenant DAS solutions in a dozen or so shopping centers, hotels and office blocks.