Vodacom readies new company to manage SA towers

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Vodacom Group reports healthy performance for the quarter ended June, revealing plans to launch a standalone tower company. vodacom Vodacom VodacomTowers

Vodacom’s plans to separate its South African tower portfolio are at an advanced stage and the launch of a company to manage these assets is imminent.

In this regard, Joosub says, the group is carving-out of the tower portfolio and is in the process of establishing a separate legal entity that will be 100% owned by Vodacom Group. Standalone tower companies benefit telcos fundamentally from a financial perspective, as they have larger economies of scale by hosting multiple tenants. This reduces overall costs for telcos like Vodacom.

“Service revenue in South Africa grew 3% on the back of sustained investment in technology and our network, which continues to enhance the customer experience. This experience was evidenced through the 5.1% growth in our customer contract base to 6.5 million and recognition by Tutela, an independent data research company, as the country’s leader in network quality,” says Joosub.

Commenting on the group’s overall performance during the quarter, Joosub says: “Vodacom Group produced a resilient first quarter performance despite the turmoil in financial markets and uncertainty about the recovery of the global economy, as a result of COVID-19 and the Russia-Ukraine conflict.

 

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