Bharti Airtel Divests Over 3,500 Mobile Towers In Africa To Eaton

In a cost-cutting exercise, Sunil Mittal-led Bharti Airtel will sell more than 3,500 of its mobile towers in six African countries to telecommunications tower firm, Eaton Towers.

Bharti Airtel will lease back the towers from Eaton under a 10-year pact, as per a statement issued by the company. However, the telecom firm did not disclose financial details of the agreement. The deal is subject to statutory and regulatory approvals in the respective African countries.

"This agreement (with Eaton) represents the next phase of Airtel's growth journey in Africa. We are strong proponents of telecoms infrastructure sharing, which results in industry-wide cost efficiencies," said Manoj Kohli, chairman, Bharti Airtel International Netherlands BV (BAIN).

Alan Harper, chief executive of Eaton Towers, said, this transformational deal would give Eaton Towers the most diversified tower portfolio across Africa. "We are proud to be chosen by Bharti Airtel as their key partner in these six countries," he said. The agreement will expand Eaton Towers' Africa coverage to seven countries with over 5000 towers.

The latest agreement with Eaton will allow Bharti Airtel focus on its core business and customers and will significantly reduce its on-going capital expenditure on passive infrastructure.

The Eaton pact would lead to "superior usage of passive infrastructure and help drive the proliferation of affordable mobile services across Africa," concluded Manoj Kohli.
(Image: The Economic Times)