France Telecom-Orange has signed a 15-year management outsourcing agreement for over 2,000 mobile towers in Cameroon and Cote d’Ivoire to IHS. Orange will retain ownership of the sites. Nigeria-listed IHS announced a similar deal with operator MTN in the two countries last year.
IHS currently manages some 5,700 sites, including 3,000 it owns outright, and has committed to building hybrid solar generator sites. The Orange contract increases IHS’s portfolio by around 30 percent. If not for the deal, which will involve sharing masts with MTN, Orange would have needed to invest substantially to extend its Cameroon mast network by 70 percent and to erect some 1,000 more masts in Cote d’Ivoire.
IHS CEO Issam Darwish told the Financial Times that the company will invest USD 130 million to USD 150 million to bring together the MTN and Orange networks.
Marc Rennard, Orange's executive director for Africa, the Middle East and Asia, said the agreement in Cote d'Ivoire and Cameroon "allows us to drive efficiencies, reduce costs and manage the particular conditions in emerging markets such as the cost of energy and accessibility of sites. This agreement leaves open the possibility for Orange subsidiaries elsewhere in Africa and the Middle East to look into similar partnerships".
Orange quality and CSR director for AME told the Financial Times that the operator expected to sign a mast outsourcing contract with IHS in Kenya in the next few weeks. IHS estimates that Africa’s tower outsoucing and building market will be worth over USD 10 billion over the next three years.
The company aims to raise another USD 150 million in equity and to sign a USD 280 million credit line. The company backed by Investec, Emerging Capital Partners and Wendel raised agreed USD 500 million in debt and equity in November.
