Telecommunications operator MTN Uganda has welcomed the partnership with American Tower Corporation (ATC) following the formation of a new joint venture tower company in Uganda, ATC Uganda which has acquired all MTNs existing tower sites in the country numbering 1000 at a cost of $175mn
"MTN Uganda welcomes this new partnership with American Tower Corporation as this will significantly improve our operational efficiencies, " MTN Uganda CEO Themba Khumalo said in a statement in response to the agreement.
He added that "we shall be able to leverage on the key learnings from MTN Ghana that concluded a similar partnership in December 2010."
ATC Uganda will however be managed by American Tower, and will be controlled by a holding company of which American Tower will hold a 51 percent stake and MTN Group holds a 49 percent stake.
The statement said American Tower will pay approximately 89 million dollars for its stake in the new holding company while MTN Uganda will be the anchor tenant, on commercial terms on each of the towers being purchased.
ATC Uganda is expected to build approximately 280 tower sites for MTN Uganda over the next three years in addition to pursuing opportunities to build tower sites for other wireless operators in Uganda adding that the transaction is expected to close in the first half of 2012 after which ATC Uganda will be the largest owner and operator of tower sites in the country.
American Tower Corporation is a leading independent owner, operator and developer of broadcast and wireless communications.
ATC Chief Executive Officer, Jim Taiclet, noted in the statement that "our startegy is to invest in select african markets with strong wireless growth potential and a positive investment climate.Our investment in Uganda is further evidence of our execution of this startegy."
MTN Uganda is the leading telecommunications company in the country and recently said its investments in the country had topped one billion dollars and its subscriber based had grown to seven million since the company launched its operations in 1998.
By Geoffrey Muleme
