Nicola Mawson
France’s Orange Telecom has entered into a partnership with South Africa’s largest mobile network operator, Vodacom, to expand cellular coverage in the Democratic Republic of Congo (DRC).
The companies have agreed to collaborate to build, own, and operate solar-powered mobile base stations in underserved areas of the DRC. In a statement, Vodacom said this was a first of its kind, rural towerco partnership in Africa.
Orange currently operates in eight African countries through investments in Burkina Faso, Côte d'Ivoire, Ghana, Guinea, Liberia, Mali, Nigeria and Senegal along with its 16 points of presence. Vodacom’s DRC operation has more than 21 million customers. Mobile Internet penetration in the DRC is at 32.3%.
In the statement, Vodacom said the initiative will extend network coverage and enable access to telecommunications and mobile financial services to up to 19 million people in less densely populated rural communities.
“We have the opportunity to significantly contribute to the continent's socio-economic development by building a digital society and fostering inclusivity for all. This aligns with our purpose to connect for a better future, and our partnership with Orange is a crucial step towards providing mobile coverage to people in previously underserved areas in the DRC,” said Shameel Joosub, the CEO of the Vodacom Group.
The companies have agreed to jointly construct up to 2 000 new solar-powered base stations over six years, using 2G and 4G technologies. This agreement starts with an initial commitment of 1 000 sites after which Orange and Vodacom may scale the project by a further 1 000 towers.
The investment, which will enable consumers to access voice, data, and mobile money services, should start being operational with the first tower coming online this year. The base stations will be operator agnostic. Orange and Vodacom will be sharing active and passive equipment owned by the joint venture as anchor tenants for an initial term of 20 years.
“Collaborating with Vodacom by sharing both passive and active infrastructure is the most effective approach to fulfilling our commitment to accelerating connectivity access for everyone, including rural areas, while minimising our environmental footprint,” says Orange Middle East and Africa CEO, Jérôme Hénique.
BUSINESS REPORT