Towercos to free up capital for MNOs to deploy 5G – IHS

In the capital intensive adventure to deploy the fifth generation (5G) network in Nigeria, tower companies (Towercos) have stepped in to help mobile network operators (MNOs) free up some required expenses to ensure 5G is delivered to Nigerians at lower cost.

Experts at IHS Towers Limited made this known at the just concluded Policy Implementation Assisted Forum (PIAFo) on 5G Plan while addressing the topic: Bridging Telecoms Infrastructure Gaps: The Imperatives.

In his address, Segun Akintemi, Director of IHS Holding Limited, said in setting the context and tone for an engaged communications infrastructure company or tower company (Towerco) segment of the ecosystem, it is important to understand the role of a Towerco, such as IHS Towers.

Segun Akintemi

He said that Towercos will help the MNOs to release capital, stressing that leasing infrastructure from Towercos releases capital for MNOs and frees up investment needed for 5G and other services.

He stated that towercos also facilitate market entry of new operators by presenting them with various lower cost options, as well as help manage the environment via co-location.

According to him, “Co-location means fewer towers are needed to meet the network and enhanced connectivity demands.”

Represented by Director of Sales at IHS, Akeem Adeshina, Mr. Akintemi further noted that 5G has put new demands on Towercos as a major stakeholder to bridge infrastructure gap for the new technology.

Akeem Adeshina Delivering IHS Presentation as PIAFo

“For 5G to succeed in Nigeria, the necessary infrastructure needs to be in place. Infrastructure deployment usually precedes new technology deployment and is highly CAPEX intensive. 5G comes with its own unique infrastructure requirements,” he said.

He anticipated that 5G demands from Towercos will include two to four times the current number of sites (micro and street furniture); twice to thrice the power consumption of current sites; required fibre connectivity for scalability; and space to accommodate massive multiple-in multiple-out (MiMo) Antennas.

“Other fresh demands to meet Nigeria’s 5G target are high reliability and availability/Uptime towards five nine (99.999&), that is, downtime of 24 seconds per month; new competence and skilled resources and data centres for edge computing.

“In terms of bridging the infrastructure gap, the above considerations are at the forefront for IHS Nigeria. They require significant investment, regulatory support and customer collaboration,” Akintemi said.

Meanwhile, he explained that generally, towercos enable a more efficient use and deployment of communications infrastructure including towers, fibre and data centre space.

He noted however that to be a catalyst for bridging the communications infrastructure gap, it is important that towercos such as IHS, are part of the 5G dialogue.

In essence, he said towercos can deliver a range of socioeconomic benefits to Nigeria and contribute meaningfully to its development, particularly given the significant focus currently on the digital economy.

“Such benefits are targeted not just at the MNOs, but also towards the end consumers and wider markets,” He said.