07 March 2024

Africa’s tower industry remains in its infancy, blighted by economics, poor supporting infrastructure, unreliable power, and complex regulatory hurdles. Is infrastructure sharing the answer to the continent’s extensive connectivity challenges?

Africa’s tower market is booming as the race to connect the entire population with 3G, 4G and even 5G is well and truly on.

“The towerco industry in Africa and the Middle East is relatively nascent compared to the rest of the world and therefore we see plenty of opportunity in these regions, particularly as mobile remains under-penetrated today and populations continue to expand,” says Tom Greenwood, CEO, Helios Towers.

“The vast number of tower infrastructure providers that are firmly entrenched in Africa, with more to come as the region continues to go through iterations of telecom growth, can only mean one thing,” opines Sumedha Tatke, director – marketing and product management, Tarantula. “Tower sharing is not just prevalent, but it is also a necessity to support sustainable and profitable growth of tower infrastructure across the continent.”

Africa’s tower landscape
Infrastructure sharing offers a whole host of opportunities including CAPEX and OPEX savings; improved network coverage, particularly in remote and rural regions; and reduced environmental impact by minimizing the need for redundant infrastructure and energy consumption.

“We expect to see tower sharing grow across Africa as mobile network operators seek to reduce capex and accommodate growing mobile data traffic levels, particularly as they move up the technology curve, from 2G to 3G to 4G,” confirms Greenwood.

“Several multinational companies have been involved in promoting tower sharing across the continent and most MNOs are taking the opportunity to sell off these assets and then lease them at a relatively low OPEX,” says Andrew Edmondson, chief executive officer, Insite Towers. “Some countries have made significant progress in adopting these practices, while others are still in the early stages but seem likely to join in with the tower sharing model.”

“Operators can minimize capital expenditure on tower infrastructure and focus on growing their networks as well as providing customer satisfaction,” agrees Tatke.

“Towercos can benefit from having multiple tenants sharing their tower sites and optimize both capex as well as risk of deploying expensive towers. They can provide value-added services such as power and security to provide an attractive offering to MNOs. The environmental impact is also a huge benefit, with shared infrastructure contributing to environmental sustainability by minimizing the need for additional towers and reducing the overall carbon footprint of the telecommunications industry.”

The model can, in some cases, also lead to improved competition and market growth: “tower sharing can foster healthy competition by allowing multiple operators to provide services in the same area, leading to improved service quality and options for consumers,” says Edmondson.

Across the continent, governments have a key role to play in advancing the tower sharing model. According to Edmondson, some may implement policies to encourage tower sharing as part of broader initiatives to enhance connectivity and promote economic development.

However, “regulatory frameworks may not always be conducive to efficient tower sharing. Policies related to infrastructure sharing and colocation can vary across countries and may pose barriers,” adds Edmondson.

“With regulatory requirements and government policies varying greatly over multiple markets in Africa, towercos must spend extra efforts in ensuring that tower sharing is both profitable and sustainable,” says Sumedha Tatke, director – marketing and product management, Tarantula. “Rural areas in Africa frequently cannot support easy access or power to remote areas, making it difficult to deploy and share telecom infrastructure. Moreover, with limited connectivity across rural areas, ROI on shared infrastructure may be lower. For MNOs, tower sharing can be a challenge in areas where they may risk losing network coverage or market share.”

Despite the wealth of opportunities and benefits inherent in the tower sharing model, hefty challenges remain, limiting its adoption. Myles Freedman, business operations director, Extensia, notes that although in most African countries (38 as of January 2024), “the sharing of mobile telecoms infrastructure has been integrated into market regulations, this common-sense approach is slow to fully materialize on the continent, due in particular to the attachment of operators to retaining their dominant positions and fears of anti-competitive practices on the part of regulators, underlines a report published on December 9 by Ecofin Pro.”

According to Freedman, the telecom operators present above all want to gain as much market share as possible and establish their domination. “Having a larger commercial footprint is for them the guarantee of a larger subscriber base and therefore greater revenue. As a result, sharing a few physical telecom sites is still tolerable, but allowing competitors to exploit its technical presence to reach previously exclusive market niches is more delicate, even for a fee. The revenues generated as the only player present in a market niche are more interesting.”

Sharing is caring
Moving to shared tower infrastructure is no simple task, and a significant decision for CSPs; as such, careful consideration is essential.

According to Edmondson, ensuring compliance with local regulations and policies governing shared tower infrastructure must be one of the first steps in any colocation deal. It’s vital that CPS understand any legal requirements or restrictions related to tower sharing in the specific regions of operation.

“First and foremost, the regulatory landscape in the market of operation should be supportive of tower sharing agreements,” agrees Tatke. “The relevant guidelines need to be studied and licenses must be procured in order to move to shared towers.”

A clear business model is another must, which adequately defines the strategy for shared infrastructure – is the focus cost savings, enhanced network quality, or broader coverage? Clearly defined SLAs and agreements are needed between the involved parties, with parameters established for network performance, uptime, maintenance responsibilities, and dispute resolution mechanisms.

This includes “assessing the redundancy and reliability of the shared infrastructure; and implementing backup and failover mechanisms to ensure uninterrupted services in case of equipment failures or other issues,” says Edmondson.

“MNOs need to develop robust and sustainable framework agreements with the tower infrastructure owners with ironclad dispute resolution mechanisms, simple exit clauses, and future-proof commercials,” adds Tatke.

Technical compatibility must also be assessed, given the different network equipment and technologies at play. As per Edmondson, “operators must ensure that shared infrastructure can support the diverse needs of multiple service providers without compromising network performance.”

“CSPs also need to consider the technical feasibility of shared infrastructure, making sure that it supports the required and future capacity, fibre backhaul, and technology requirements of the network,” highlights Tatke.

Other factors that must be considered include safety and security measures to protect the tower sites; well-defined operations; and maintenance procedures from both the CSP and infrastructure providers to maintain the health of the site, and community impact of the shared infrastructure. Engaging with local communities and stakeholders to address any concerns they may have regarding shared tower infrastructure, and the environmental impact, are key to success.

“Last but not least, a thorough cost-benefit analysis is required to assess the financial implications of shared tower infrastructure, ensuring that it is both cost-effective and generates ROI,” says Tatke.

“Mobile operators typically obtain efficiencies when transitioning to a shared tower infrastructure provider,” adds Greenwood. “This is because the removal of duplicate generators, power systems and steel saves time and resources, which ultimately drives a more efficient partnership – both in terms of financial cost as well as reducing carbon emissions.”

However, CSPs must fully “understand the financial implications of shared tower infrastructure and evaluate the potential savings in terms of capital and operational expenses versus the costs of implementing and maintaining the shared infrastructure,” shares Edmondson.

Developments in design
Tower design has advanced in leaps and bounds in recent years, and with infrastructure sharing taking the African continent by storm, designs are changing with the times…

Edmondson believes that the infrastructure sharing model impacts modern tower design by emphasizing cost efficiency, space optimization, regulatory compliance, technological adaptability, aesthetic considerations, streamlined maintenance, enhanced accessibility, security, safety, and interference management.

“Designing towers with these factors in mind can facilitate the successful implementation of infrastructure sharing among multiple service providers,” says Edmondson.

“The newest technological advances in tower manufacturing and construction have progressed rapidly to support the multi-tenant tower sharing model,” asserts Tatke. “To start with, towers are well equipped to support multiple antenna mounts, equipment cabinets, and transmission lines from each of the operator tenants.”

Modern towers are designed taking into consideration not only the physical dimensions of the equipment to be hung on the mast, but also environmental factors such as wind load and terrain.

“They can easily accommodate different technology standards, frequencies, and equipment configurations used by various operators. This adaptability ensures that the tower can support the evolving needs of multiple tenants,” continues Tatke. “Additionally, shared cabinets can also be provided to install on-ground equipment. However, robust control mechanisms must be implemented to ensure secure and conflict-free access by each of the tenants.”

“Towers designed for infrastructure sharing should be scalable to accommodate the evolving needs of multiple operators,” agrees Edmondson. “This includes considerations for additional antennas, equipment, and power requirements as technology advances.”

One important tenet for shared towers and their design is the inclusion of interference management; designers must account for optimal separation between antennas to minimise interference between different operators’ equipment, requiring stringent planning.

Edmondson explains how, “in some regions, regulatory authorities encourage or mandate infrastructure sharing to reduce environmental impact and avoid the proliferation of towers. Tower designs that facilitate sharing can expedite regulatory approvals.”

The role of digital twins
While engineering design tools and structural analysis applications enable tower owners to design and build towers, newer applications such as digital twin software takes the tower fully into the digital world.

“These tools are able to record and capture actual tower data through drones, drawings, or Lidar, and render a digital, 3D view of the as-built tower,” says Tatke. “They can identify equipment installed on the tower, simulate additions, moves, or changes of equipment on the tower, and provide an instant visual assessment of the tower capacity. When combined with centralized asset management systems, digital twin software can provide a visual source of truth for towercos and MNOs alike to identify tower sharing opportunities. This leads to a seamless and friction-free experience for towercos and MNOs to collaborate effectively on the shared infrastructure.”

The implementation of digital twins can play a significant role in enhancing tower sharing opportunities throughout Africa.

“Digital twin technology will enable us and other tower companies to better understand the real-time structural capacity of each tower,” says Greenwood. “This supports quicker roll-out of new colocations. It would also mean in-person site visits in advance of installation are no longer required.”

Indeed, “advancing tower technologies like digital twins can lead to more efficient, flexible, and cost-effective tower management. This, in turn, can create a conducive environment for increased tower sharing opportunities, fostering collaboration and resource optimization within the telecommunications industry,” adds Edmondson.

Providing efficient resource management, digital twins create a virtual representation of physical towers, allowing operators to monitor, analyse, and manage them in real-time. With this technology, says Edmondson, operators can optimize resource allocation, ensuring that each tower operates at its maximum capacity.

“Digital twin technology will support efficiency within the industry,” agrees Greenwood. “For instance, it could help with predictive maintenance and imaging, which would be inputted directly into a digital database that more efficiently enables decision makers to view real-time information and make quicker decisions.”

Notably for the tower sharing model, digital twins can facilitate interoperability between different network operators and technologies, making it easier for multiple operators to share the same infrastructure seamlessly. Meanwhile, enabling dynamic configuration to adapt to changing network demands means that tower sharing can be optimized by adjusting parameters such as antenna orientation, frequency allocation, and power levels based on real-time requirements.

Digital twins can also assist in ensuring regulatory compliance by providing a comprehensive overview of tower operations: “this transparency can streamline the regulatory approval process for tower sharing agreements,” says Edmondson.

Will colocation meaningfully connect Africa?
Offering more efficient, cost-effective, and wider availability of mobile networks than ever before, infrastructure sharing heralds a new era for delivering meaningful connectivity to every African.

“Without a doubt, tower infrastructure is the answer to meaningfully connecting the continent, where the mobile penetration is only around 50%,” declares Greenwood. “Tower sharing enables MNOs to rollout their coverage faster and more cost-efficiently than they could on their own.”

However, Edmondson believes that “tower infrastructure sharing is a crucial component in improving connectivity in Africa, but it’s not the sole solution. Africa faces challenges in terms of geographical diversity, economic disparities, and regulatory issues that require a multi-faceted approach.”

“While tower sharing may not be the single answer to pan-African connectivity, it will play a crucial role to increase coverage and infrastructure across the continent and can help in minimizing some of the challenges,” agrees Tatke. “Shared telecom infrastructure enables operators to grow at scale while realizing economical efficiencies by sharing the infra costs.”

When it comes to delivering truly meaningful connectivity, engaging with local communities to identify the specific needs and challenges of different regions and stakeholders is crucial.

Here, digital inclusion programmes are required. “Addressing the digital divide requires not only physical infrastructure but also initiatives that promote digital literacy and affordable access to devices. Connectivity is only meaningful when people can effectively use the available resources…” shares Edmondson.

Shared tower infrastructure facilitates faster and more efficient network deployment, enabling operators to quickly extend their coverage, especially to underserved and remote/rural areas. But that’s not the only benefit of infrastructure sharing specific to meaningfully connecting Africa.

“It allows for the efficient use of resources such as land, power, and backhaul connectivity. This optimization helps reduce the environmental impact and makes infrastructure deployment more sustainable,” explains Tatke. “Sharing towers reduces environmental impact, and it also provides a fail-safe mechanism to support load balancing in case of failures. Lastly, the cost savings associated with tower sharing can free up resources for additional investments in expanding network capacity and improving the quality of services, further enhancing connectivity.”

While tower infrastructure sharing is an important aspect of improving connectivity in Africa, “a comprehensive approach that considers technological advancements, regulatory frameworks, community engagement, and digital inclusion programs is necessary for meaningful and sustainable results,” concludes Edmondson.