Telecommunications tower company, Helios Towers Africa has been granted the first license by the Tanzania Communications Regulatory Authority to independently operate a network of telecoms towers in that country.
The license, which is a leaseback deal, will deliver significant benefits to the Tanzanian market, notably providing higher quality service coverage, including in rural communities, Helios says.
“The tower sharing plan also allows increased competition between operators, lowers costs for customers, and improves environmental conditions by reducing the number of towers built,” said Helios Towers in a statement copied to ghanabusinessnews.com.
Helios Towers Africa purchased the 1,180 telecoms towers from Tigo Tanzania, in December 2010 of which Tigo Tanzania will receive $80 million cash up-front and will retain a significant minority interest in the company, the statement said.
This transaction follows the successful launch of Helios Towers Africa’s business in Ghana in 2010 when the company pioneered Africa’s first sales and leaseback deal with the purchase of 735 towers from Millicom Ghana, a subsidiary of Millicom Internaltional Cellular S. A. and operators of Tigo.
“We have seen significant success with our operations in Nigeria and Ghana and we look forward to bringing the same experience and benefits to Tanzania,” Charles Green, CEO of Helios Towers Africa said.
The company manages a total of around 3,500 towers across Africa.
By Ekow Quandzie