Helios Towers Africa announces groundbreaking leaseback deal in Tanzania
Shared infrastructure will bring multiple benefits to Tanzanian telecommunications industry
August 5 2011, Dar Es Salaam – Helios Towers Africa, the leading independent telecoms tower company in Africa, has today been granted the first licence by the Tanzania Communications Regulatory Authority to independently operate a network of telecoms towers.
This news, announced at a press conference attended by government officials, confirms the completion of Tanzania’s first tower sharing leaseback deal.
The shared tower network will deliver significant benefits to the Tanzanian market, notably providing higher quality service coverage, including in rural communities. The tower sharing plan also allows increased competition between operators, lower costs for customers, and improves environmental conditions by reducing the number of towers built.
This transaction follows the successful launch of Helios Towers Africa’s business in Ghana. In 2010, the company pioneered Africa’s first sales and leaseback deal, with the purchase of 735 towers from Millicom in Ghana.
Charles Green, CEO of Helios Towers Africa, said, “We are very pleased to be at the forefront of such an exciting and important new phase in Tanzania’s telecoms industry. Helios Towers pioneered independent tower sharing in Africa – this model is the best way to ensure accessibility, affordability and the highest quality of communications service through increased efficiency and competition. 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.”
Simon Horner, CEO of Helios Towers Tanzania, said, “This deal marks a significant moment in the development and growth of Tanzania’s telecoms industry. We are deeply committed to delivering the greatest value to all telecoms operators and their customers across Tanzania. Helios Towers Africa has the unique experience, scale and quality of management to ensure the best deal is achieved for all concerned.”
Helios Towers Africa purchased the 1,180 telecoms towers from Tigo Tanzania, the Tanzanian operation of South Africa’s Millicom International Cellular, in December 2010. Tigo Tanzania will receive $80m in cash upfront and will retain a significant minority interest in the company. Helios Towers has also purchased 729 towers from Millicom in the Democratic Republic of Congo.
Helios Towers Africa is the leading independent tower company in Africa. Operational since 2009, the company was created by Helios Investment Partners, an African-focused private equity firm.
Helios Towers Nigeria, an affiliate company, became the first independent tower company in Africa in 2005. Helios Towers Africa pioneered Africa’s first sale/leaseback transaction in 2010 and currently owns and manages over 3,500 towers across Africa.
Helios Towers Tanzania is based in Dar Es Salaam. The company has been operational since 2010 and currently employs 32 people.
