Tower company to invest $85m in Dar

[nngu007]

By DORITHY NDEKETELA
Posted Saturday, September 1 2012 at 11:59
IN SUMMARY

• The project is expected to take 18 months, and will improve the quality of services offered by mobile operators in Tanzania.
• The new towers will provide hybrid power solutions, and will be shared by telecommunication service providers, which have contracts with the company.
• Norman Moyo, chief executive officer of Helios Towers Tanzania Ltd, explained that tower-sharing will see operators reduce their investment in infrastructure building, and pass on the benefits to their customers.
• Currently, Helios manages 1300 towers across the country, and has embarked on an expansion programme to meet the growing demand.

Tanzania's Helios Towers Ltd plans to invest Tsh132.2 billion ($85 million) to offer affordable tower solutions to telecommunication service providers in the country.



The project is expected to take 18 months, and will improve the quality of services offered by mobile operators in Tanzania.

The new towers will provide hybrid power solutions, and will be shared by telecommunication service providers, which have contracts with the company

Norman Moyo, chief executive officer of Helios Towers Tanzania Ltd, explained that tower-sharing will see operators reduce their investment in infrastructure building, and pass on the benefits to their customers.

For instance, to build a base station, an operator requires at least Tsh248.8 million ($160,000).

However, the new investment by Helios Tower Ltd will reduce the costs to Tsh18.7 million ($12,0000).

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"This means operators are able to offer services at a reduced cost and these benefits are passed down to consumers through better call rates and quality service," Mr. Moyo said.

Furthermore, the tower company guarantees better power uptime to ensure uninterrupted network.

Mr Moyo said the tower company will save the operators from running four base stations in the rural areas.

One tower, he said, has the capacity to carry all the equipment from the many operators.

"Ultimately all cost savings to operators in a competitive environment is passed on to the consumers through better quality services," he said.

Mr Moyo explained that all major mobile operators in Tanzania including Vodacom, Airtel, Tigo and Zantel, have signed agreements with the company for the service.

He said the company is also negotiating with meteorological department to include it in the deal.

Apart from the proposed investment, the company in 2011 acquired over 1250 towers from Tigo, and has recruited more than 300 employees.

Currently, Helios manages 1300 towers across the country, and has embarked on an expansion programme to meet the growing demand.

Mr Moyo said most of the company's clients have signed long-term contracts and ISPs and Broadcasters have also embraced the new concept.



According to John Nkoma, the director general of Tanzania Regulatory Authority, Helios entry into the market will transform the country's telecommunication sector.

Mr Nkoma said the tower-sharing concept was launched in Europe and India some years ago, and registered success.

 

[Ndahani]

This is a good move... I can't believe the way the guys want to drive down the cost of putting up a tower from from US$ 160,000 to only US$ 12,000. How are they going to do it? Changing the current technology?

 

[Mwanahisa]

Vodacom walikuja na huu mkakati mwanzoni kabisa, wakitaka kuwekeza minara nchi nzima ili makampuni mengine ya simu yanunue site position kutoka kwao, a fantastic opportunity for a business mind, wakazimwa sijui na TCRA, sasa kila kampuni ikaanza kujioteshea minara yake binafsi, matokeo yake tumekua na mashamba ya minara na sio mihogo ya chakula.

 

[morphine]

yale yaleeee:yawn:

 

[SMU]

This is a good move... I can't believe the way the guys want to drive down the cost of putting up a tower from from US$ 160,000 to only US$ 12,000. How are they going to do it? Changing the current technology?

Thats impossible! I dont see how this is doable tena ukizingatia kuwa itawabidi wajenge tower madhubuti zaidi ili kuweza ku accomodate equipment za operators wengi!. Pengine alichokusudia kusema ni kuwa badala ya kila operator kujenga tower yake kwa $160,000, Helios itajenga tower moja na hao operators watashare tower hiyo, kitu ambacho pengine kitawagharimu only $12,000 (kwa mwaka? mwezi? per tower).