AFRICA
Guinea-Bissau: MTN exits with sale to Telecel
MTN Group has announced approval to sell it’ Guinea-Bissau unit to Telecel Group as the operator pushed forward in a wider exit strategy to focus on core markets. MTN had previously reported the opco was contributing little to the bottom line, with 830,000 subscribers representing a year-over-year decline from Q1 2024.
Namibia: Telecom Namibia extends network coverage
Telecom Namibia has expanded its network infrastructure by deploying 77 new mobile base stations to enhance network coverage, capacity and speed in rural and urban areas. Some of these new sites are also being fiberized for optimal high-speed connectivity. The rollout is expected to complete by January 2025.
Uganda: Government sells 60% of Utel to Rowad Capital
The Ugandan government is in the process of securing US$225mn in investment from Rowad Capital for telecom revitalization. The state-owned MNO faced severe financial difficulties which resulted in the surrender of the firms assets and cease of business operations. Utel has contented to transfer a majority 60% stake to UAE-based investment firm Rowad Capital to bolster the MNOs position in the market through the deployment of new network infrastructure.
EUROPE
Austria: Cellnex exists market
On 9 August 2024 Cellnex Telecom announced the long-awaited sale of its Austrian telecom tower portfolio to a consortium. More details here
France: Bouygues Telecom moves closer to buy La Poste Telecom
The French competition authority has cleared the proposed acquisition of MVNO La Poste Telecom by MNO Bouygues Telecom for EUR950mn without any conditions. La Poste Telecom is currently 51% owned by the La Poste Group (the French Post) and 49% by Bouygues Telecom’s rival SFR. Following the completion of the transaction, Bouygues Telecom will get sole control of La Poste Telecom (buying out both shareholders), add 2.3mn mobile customers, and will gain new distribution channels through the access to La Poste and La Banque Postale offices across France.
In addition to getting approval from the competition authority, the deal still requires the approval of SFR. La Poste Telecom runs on the SFR network and has a contract with the MNO ending in December 2026. In addition to mainland France, La Poste Telecom operates in Reunion Island, Mayotte, Guadeloupe, Martinique and French Guiana.
Italy: Phoenix Tower International inks strategic agreement with Iliad
Phoenix Tower International (PTI) has signed a significant BTS agreement with Italian MNO Iliad for the development of up to 1,900 new telecommunications sites in densely populated and moderately populated areas. More details here
Portugal: Digi acquires largest MVNO Nowo
The Portuguese subsidiary of Romanian telco group Digi Communications has bought the largest MVNO on the market from telecommunications group Lorca JVCO for EUR150 mn.
Vodafone Portugal has previously attempted to buy the MVNO but the Portuguese competition authority AdC blocked the deal in July 2024 citing it would hamper competition. Its investigation determined the concerns of regulator ANACOM that in areas where Nowo operates, Vodafone customers would no longer have a lower priced operator as an alternative. Digi Portugal, an MVNO at present, is expected to launch as the country’s fourth MNO in late 2024 and has been vocal about the lower prices it will offer to consumers.
Nowo holds spectrum licenses in 1800 MHz, 2600 MHz and 3600 MHz frequency bands which it won in 2021. Vadofone was not allowed by ANACOM to bid for them in the 2021 auction.
Nowo has around 270,000 mobile and 130,000 fixed-line customers. The completion of the deal is subject to competition clearance.
Sweden: Xavier Niel becomes majority shareholder in Tele2
Investment vehicle Freya Investissement, jointly owned by Iliad Group and its chair Xavier Niel through NJJ Holding, has purchased class A shares for SEK637 mn (EUR56 mn) in MNO Tele2 from Swedish investment firm Kinnevik. This transaction marks the third and final stake sale by Kinnevik which has started offloading shares in 2022 in line with strategy to improve finances and exit its Tele2 investment. Freya Investissement will be the largest single investor in Tele2 with class A shares and almost 20% stake, followed by BlackRock which holds almost seven % of the capital in class B shares.
According to Tele2, its share capital comprises Class A, Class B and Class C shares with the latter not paying dividends to their shareholders. Class A shares entitle the holder to 10 voting rights per share and Class B and C shares to one voting right per share.
United Kingdom: Bharti Enterprises to become BT’s largest shareholder
Indian conglomerate Bharti Enterprises has announced it will buy 24.5% of BT’s shares from Altice, owned by Patrick Drahi for an undisclosed amount. The acquisition will take place in two stages with Bharti buying the first part of Altice’s BT stake, equivalent to 9.99% of the UK company, and the remaining 14.51% will be bought when the company receives regulators’ permission.
Altice has spent GBP3.2bn (EUR3.75 bn) to acquire the stake in BT. Altice has accumulated USD$60 bn (EUR54.1 bn) debt and has started selling off assets to cut it.
Bharti Enterprises owns MNO Bharti Airtel which is active in India and 17 countries across South Asia and Africa.
ASIA
AUSTRALIA: Optus fails to fulfil AustralianSuper build commitment for 500 new towers
Australia’s largest superannuation fund, AustralianSuper, has widely reported to have fallen out with Optus over the new build of towers as part of a major transaction secured back in 2021.
It believes that the Singtel-owned MNO had failed to deliver its commitment back then, worth A$1.9bn (US$1.29bn), to build 500 new towers for Australia Tower Network (ATN), majority-owned by AustralianSuper.
Singtel sold a 70% stake in ATN in October 2021, a wholly-owned subsidiary which operates Optus’ passive telecommunications tower infrastructure, to AustralianSuper.
Under the terms of the deal secured nearly 36 months ago, Optus would be the anchor tenant for 565 new build-to-suit sites to be built over the next three years forming an integral part of Optus’ 5G network on top of the transfer over of 2,312 tower and rooftop sites. Optus also uses the towers under a long-term lease agreement.
With the three-year deadline looming, Optus is behind schedule on the build, blaming that it is struggling to identify suitable locations. Reports suggest the discussions between Optus and ATN are still ongoing.
ATN acquired its tower rival Axicom in 2022, a move that saw it roughly double its tower footprint across the country. Shortly after, the company subsequently rebranded as Indara.
INDONESIA: Mitratel signs High Altitude Platform Station MoU
Indonesian towerco Mitratel has signed a Memorandum of Understanding (MoU) with High Altitude Platform Station provider AALTO HAPS to explore how to provide commercial HAPS solutions in Indonesia.
Indonesia is the largest archipelago globally with geographic and economic challenges in extending internet access and network availability across 3T, the country’s frontier, outermost, and underdeveloped areas.
AALTO’s stratospheric, solar-powered Zephyr HAPS can transform into a multi-functional tower in the sky to provide low latency 5G direct-to-device mobile connectivity services.
AALTO, an Airbus subsidiary company, has been making its presence felt in Asia having secured a US$100mn investment from a consortium of Japanese businesses led by NTT DOCOMO back in June. The partnership aims to build a strategic alliance to commercialise connectivity and earth observation services using HAPS in Japan and across Asia. AALTO has the ability to extend the coverage of mobile network operators (MNOs) and reducing network white spots.
Theodorus Ardi Hartoko, CEO, Mitratel said: “We support the Government of Indonesia’s plans to deliver equal access to high-quality telecommunication for all citizens. Access to the internet can improve quality of life alongside boosting economic growth in regions. Therefore, we are pioneering various initiatives and adopting new technology that enables Mitratel to expand its network effectively.
“We are confident that collaboration with AALTO will expand existing infrastructure to improve access to affordable and effective connectivity across 3T regions by develop the industrial and commercial pathway for HAPS and Flying Tower Systems (FTS) in Indonesia.”
Samer Halawi, CEO, AALTO, concluded: “Mitratel continues to be an innovative market leader, recognising the game-changing potential of services from the stratosphere. Our focus now turns to deepening our engagement with Mitratel to build a cohesive HAPS ecosystem in Indonesia.”
INDONESIA: Protelindo completes iForte acquisition
In other news in Indonesia, Protelindo’s fibre subsidiary iForte has acquired IBS Towers (IBST), increasing its fibre network to over 170,000km in order to strengthen its fibre to the tower (FTTT) and fibre to the home (FFTH) businesses.
Its FTTT operation is now a potentially lucrative commercial model, with over 205,000km revenue generating fibre. Its FTTH business also has over 1.1mn homes passed. iForte has taken a 90.11% stake in IBS Towers.
The transaction strengthens towerco Protelindo's position as one of the largest independent digital infrastructure companies in Indonesia, boosting tower ownership to over 34,300 towers with almost 58,000 tenancies.
Ferdinandus Aming Santoso, CEO, Protelindo Group, said "This transaction is a strategic step for the Protelindo Group to continue to improve both the group's operational efficiency and its value to clients.
“Given the complementarity of IBST’s tower, FTTT, FTTH, and connectivity businesses, we expect to extract significant synergies, akin to our previous success in integrating iForte, KIN and STP. We are also excited to strengthen our partnership with Smartfren through a new 10-year lease arrangement for the existing tower and FTTT business in IBST and with their binding commitment for additional tower collocation and FTTT business going forward,” he concluded.
AMERICAS
Argentina: Nokia Secures Agreement to Roll Out 5G for Claro
Nokia has announced on Tuesday, 27th August, the signing of a comprehensive contract with Claro to deliver the telecom operator's 5G infrastructure across Argentina. This agreement is set to encompass the initial phase of 5G deployment, focusing on the nation’s largest cities.
According to both companies, this move aligns with Claro’s strategy to drive Argentina's digital transformation by providing reliable, low-latency, and high-speed connectivity for both consumers and businesses. Meanwhile, Nokia stands to increase its market share as the sole supplier of Claro’s network infrastructure.
Claro Argentina has ambitious plans to transform Argentine society through the deployment of 5G networks.
Envestnet Portfolio Solutions Reduces Stake in América Móvil
One of Latin America's leading telecommunications companies. During the second quarter, Envestnet cut its holdings by 17.9%, selling 4,253 shares, and now holds 19,546 shares valued at approximately $332,000. This move is part of a broader trend among institutional investors who are adjusting their positions in the company.
América Móvil, which operates extensively across Latin America, remains a key player in the region's telecommunications landscape despite facing mixed reactions from analysts. While StockNews.com upgraded the stock to a "strong-buy," other firms like UBS Group have slightly lowered their price targets. América Móvil continues to be a significant focus for investors, particularly in Latin America, where it provides a wide range of services, from wireless communications to mobile banking solutions.
Colombia: Claro Backs Telefónica-Tigo Merger, Paving the Way for Change in Colombia's Telecom Sector
Claro Colombia has endorsed the proposed merger between rivals Telefónica and Tigo, a move that could reshape the country’s telecom industry. Announced in July 2024, the deal involves Tigo acquiring Telefónica’s majority stake in Colombia, with plans to buy out the government’s share as well. Claro believes the merger will bring financial stability to the sector, attracting crucial investments to meet rising consumer demands. With Colombia’s telecom market facing challenges, including WOM’s recent bankruptcy, this consolidation could drive necessary reforms and boost overall market performance.
MENA
Qatar: to Shut Down 3G Networks by End of 2025
Qatar’s Communications Regulatory Authority (CRA) has announced that 3G networks will be phased out by December 31, 2025. This move is part of CRA’s strategy to improve the quality of telecommunications by focusing on 4G LTE and 5G networks. Ooredoo Qatar and Vodafone Qatar will need to end their 3G services by the deadline to make better use of the available radio spectrum for advanced technologies. This change is aimed at boosting the performance of newer networks and supporting Qatar’s National Vision 2030.
In addition, CRA has banned the import of phones that only support 2G and 3G. It has approved devices with VoLTE technology that meet its standards. This shift is expected to enhance data speeds, reduce latency, and improve overall user experience, aligning with Qatar’s goal of modernising its telecommunications infrastructure and supporting its Third National Development Strategy 2024-2030. Other countries, including the U.S., Japan, and the U.K., have already made similar moves to shut down 3G services.
Egypt: Ericsson Partners with e& to Boost Network Capabilities
Ericsson has joined forces with the operator e& Egypt in a major deal aimed at enhancing ICT infrastructure across Egypt. This partnership will see the integration of Ericsson's advanced 20-port antennas into e& Egypt’s network, which will support high-order site sharing among all operators. The new technology is expected to play a crucial role in the rollout of 5G services and contribute to the overall development of Egypt’s telecommunications landscape.
The state-of-the-art antennas from Ericsson's Antenna System (EAS) are designed to handle multiple frequencies and technologies from a single site. This will lead to faster internet speeds, greater reliability, and better connectivity for users. According to Hossam Abdelkader, Networks Director at e& Egypt, this collaboration aligns with Egypt’s Vision 2030 by expanding 4G capabilities and setting the stage for 5G. Ericsson has previously made strides in Egypt with Vodafone and Orange, reinforcing its commitment to the region's telecom advancements.
Saudi Telecom's Share Price Rises After Dividend Increase
Saudi Telecom Company (STC) has announced a significant increase in its quarterly dividend, causing its stock to reach a 13-month high. Starting from the last quarter of 2024, STC will pay SAR0.55 per share each quarter, a 38% rise from the current SAR0.40. This move aims to provide investors with a stable and predictable income, which has positively affected STC’s stock price and increased the likelihood that its major shareholder, the Public Investment Fund (PIF), might sell some of its stake.
The dividend hike comes as STC is exploring the possibility of selling part of its stake to take advantage of the improved market conditions. Analysts see the higher dividends as a sign of STC’s confidence in its financial stability and future cash flow. The announcement also supports STC’s ongoing expansion efforts in Europe and beyond, despite a rise in its net debt. The stock’s recent surge suggests strong market confidence, potentially allowing PIF to offload shares at a better price.
