MTN Group and American Tower Corp has created a joint venture tower company in Uganda, which would see all of the existing MTN towers being sold off to the new company, ATC Uganda, for around $175 million. The deal is expected to be finalised by the first half of next year.
“Infrastructure sharing makes absolute sense for MTN and we expect it to play a significant role in reducing our long-term infrastructure costs,” MTN Chief Executive Sifiso Dabengwa said.
American Tower operates around 38 000 towers across the globe, and has been looking to expand into emerging markets, especially Africa. The company will also own 51% of ATC Uganda, which will set them back around $89 million.
As part of the new venture, ATC Uganda will erect 280 tower sites for MTN Uganda over the coming three years, and will be engaging with other wireless operators to expand their networks in the country.
“MTN continues to view infrastructure sharing as one of its key strategies in driving operational efficiencies in its operations across Africa and the Middle East and will continue to pursue appropriate initiatives in that regard,” the group says in a statement.
Charlie Fripp – Acting Online editor