Orange, a subsidiary of
), signed an agreement with IHS, a telecom infrastructure
operator, to manage and run its 2,000 towers in the African
countries of Ivory Coast and Cameroon. None of the companies have
divulged financial details of the deal.
Per the deal, IHS plans to operate the towers to improve the
mobile infrastructure of the two African nations, for the next 15
years. Under IHS's tower-sharing model the available space on
2,000 towers will be marketed to other mobile carriers in Africa,
while the Orange subsidiaries will get access to the available
space of IHS in both the countries. However, the ownership of the
property will remain with the two Orange subsidiaries.
Pan African operator IHS, through its tower sharing model,
manages around 5,000 towers and allows its partner to enhance
network coverage, improve customer experience and derive cost
To further expand the network coverage, IHS plans to build new
hybrid solar and generator power sites, which will reduce diesel
consumption up to 70%. Solar-powered sites are extremely
beneficial in rural areas due to low data traffic demand and
lesser diesel consumption, which in turn reduces tower operating
According to Orange, sharing its infrastructure with a tower
specialist is favorable for the company as it will be able to
handle situations like volatile energy costs or land
accessibility, better than its partner.
We believe that outsourcing tower infrastructure will not only
save Orange's operating cost, but will also help the French giant
to gain from the technical know-how of IHS.
Currently, France Telecom carries a Zacks Rank #3 (Buy).
Other Stocks to Consider
Other stocks to consider among foreign telecom companies are
Rogers Communications Inc.
China Telecom Corp Limited
(CHA ) and
Liberty Global Inc.
). All the stocks carry a Zacks Rank #2 (Buy).
FRANCE TELE-ADR (FTE): Free Stock Analysis
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