TowerXchange Journal Issue 5

< Vodacom and Etisalat’s tower strategy
Tower Xchange < MTN’s tower strategy in Rwanda and Zambia
< Tanzania case study with exclusive HTA interview

The journal for the emerging market telecom tower industry
< TowerCo of Madagascar, FTS and Eaton interviews
ISSUE 5 | September 2013 | www.towerxchange.com
Let’s meet up!

Top 200 decision makers in African Towers converge at TowerXchange Meetup
TowerXchange forecasts the growth of African towercos from 23k towers today to 54k by the end of 2014 Tower Xchange
With special thanks to the TowerXchange “Inner Circle”
Our informal network of advisers: About TowerXchange
TowerXchange is your independent community

Chuck Green Alan Harper Daniel Lee
CEO CEO Managing Director for operators, towercos, investors and
Helios Towers Africa Eaton Towers Intrepid Advisory Partners suppliers interested in African towers. We’re a
community of practitioners formed to promote
Michel Faivre Riana Donaldson Adeel Bajwa
and accelerate infrastructure sharing in
Directeur Programme Partage Manager: International Network Senior GM of Legal Affairs and
d’Infrastructure AMEA Operations Support Contracts Africa. TowerXchange don’t build, operate or
France Telecom-Orange Vodacom Warid Telecom invest in towers; we’re a neutral community
host and commentator on African telecoms
Fazal Hussain Laurentius Human Inder Bajaj infrastructure.
CEO CEO CEO
SWAP International Inala Helios Towers Nigeria
The TowerXchange Journal is free to qualifying
Nina Triantis Andrew Doyle Chris Gabriel recipients. We also provide webinars and
Managing Director, Global Managing Director former CEO, Zain Africa regular meetups. TowerXchange monetizes
Head of Telecoms & Media Tech & Comms Practice Senior Adviser, Macquarie Group
this community through hosting annual
Standard Bank Mott MacDonald Chairman, Clean Power Systems
Meetups and the sale of advertising, without
Jeffrey Eldredge Natasha Good Areef Kassam compromising editorial integrity.
Partner Partner Director of Infrastructure
Vinson & Elkins Freshfields GSMA Mobile for Development TowerXchange was founded by Kieron
Ayman Al Adl Ahjeeth JaiJai Tunde Titilayo Osmotherly, a TMT community host and events
Associate Director – TMT Consultant Vice Chairman organizer with 16 years’ experience, and is
Standard Chartered Bank Investec SWAP International governed with the support and advice of the
TowerXchange “Inner Circle” – an informal
Torsten Esbjørn Rajat Malhotra Zouhair Khaliq
network of advisors
Regional Director, Africa CEO, Middle East & Africa Consultant, Executive Director
Ramboll Hayat Communications Warid Telecom, Former CEO,
Orascom Int’l Investment © 2013 Site Seven Media Ltd. All rights reserved. Neither the whole
Gary Staunton David Meganck nor any substantial part of this publication may be re-produced,
stored in a retrieval system, or transmitted by any means without
CEO Founder & COO the prior permission of Site Seven Media Ltd. Short extracts may be
Likusasa Group Acsys quoted if TowerXchange is cited as the source. TowerXchange is a
trading name of Site Seven Media Ltd, registered in the UK. Company
number 8293930.
2 | TowerXchange Issue 5 | www.towerxchange.com www.towerxchange.com

www.towerxchange.com || TowerXchange
TowerXchangeMeetup
Issue 5 | 9
XX
Contents
40 Tanzania
case study 116 Energy storage
tradeoffs 52 Towerco
perspectives
41 Infrastructure sharing in Tanzania 117 Could vanadium redox be a game changer? 54 Case study: TowerCo of Madagascar
43 HTA to acquire 1,149 towers from Vodacom 124 GE’s unique energy storage innovation 59 FTS: how to manage towers in high risk markets
46 A view of Tanzania from the front lines at NEWL 130 Li-ion technology telecom backup power 64 The future of South Africa’s telecom towers
5 Tower counts & transaction history

8 The future of the African tower industry
19 BMI: MTN’s tower strategy in Rwanda and Zambia
24 Mott MacDonald Share Square: Senegal
26 Cover story: Vodacom and Etisalat’s tower strategy
87 TowerPower: profiles of Emerson Network Power,
Ballard, UGE, Flexenclosure, Enatel and DAQS
146 Who’s who in tower design, manufacture, installation
and manages services
151 Beyond passive infrastructure: data centres
154 HS&S: cell site security and access control
70 RMS and site management,

part four 134 Rooftops, masts
and towers Departments
71 azeti add intelligence to BTS site management 135 Designing & strengthening towers for multiple tenants 13 News
77 Tarantula on how to measure and maximise TCF 139 Geostrut’s carbon fibre towers 17 Tower People
82 HMS: If you can’t measure it, you can’t manage it 143 Bridging the digital divide in Ghana 30 TowerXchange Meetup
3 | TowerXchange Issue 2 | www.towerxchange.com www.towerxchange.com | TowerXchange Issue 5 | 3

Africa’s leading, HTA acquires, builds and manages wireless
telecom infrastructure, leasing it to mobile
independent, network operators across Ghana, Tanzania
telecom tower and the Democratic Republic of Congo.
company HTA’s model of shared telecoms infrastructure,
and its scale, helps to deliver improved
efficiency and network quality and reliability
for operators, reduced costs for users and
increased accessibility.
Find out more about our business
www.heliostowersafrica.com
Updated independent tower Count differentiating towers that are
owned from those that are managed and
marketed by towercos
counts and transaction 10000
history for Africa

8000
Estimated number of towers owned or managed by towercos in Africa

Source: TowerXchange research, quarterly filings, site lists
Unknown Country 6000

IHS Africa 1900 2230 3400 720 4750
Sudan & S Sudan
Uganda
American Tower 1931 1800 1120
Tanzania
South Africa
Helios Towers Africa 750 750 2449 751 4000
Nigeria
Eaton Towers 700 700 1000 100 Ghana

DRC 4851
4700
SWAP Technologies 700 509 250 Cote d’lvoire 2000
Cameroon 3500 1700
Helios Towers Nigeria 1300 Kenya 759
1300
2000 4000 6000 8000 10000 800 700
0
log P
r
ca
s
rs
rs
we
no WA
ies
ia ower
fri
a owe
we
To
IHS Africa 8,250 MTN, Orange Nigeria, Cote d’Ivoire, Cameroon,
S
SA
To
Ni lios T
Af lios T
can
Sudan, South Sudan
IH
ton
ch
ger
eri
American 4,851 Cell C, MTN
ric
Ghana, South Africa, Uganda
Ea
He
Te
He
Am
Helios 4,700 Millicom, Vodacom Tanzania, Ghana, DRC
Eaton 2,500 Vodafone, Orange, Warid Ghana, Uganda, Kenya, South Africa
Filled bars = Owned Towers
SWAP 1,459 Starcomms Nigeria, Ghana, Cote d’Ivoire
Unfilled bars = Managed and marketed towers
Helios TN 1,300 Multi-Links Nigeria
XX | TowerXchange Issue 5 | www.towerxchange.com www.towerxchange.com | TowerXchange Issue 5 | 5

Africa’s biggest infrastructure sharing transactions to date
Publicly stated
Year Operator Country TowerCo Est. # of towers Deal structure
purchase price
2010 Millicom / Tigo Ghana Helios 750 $54m for 60% Joint venture
2010 Vodafone Ghana Eaton 750 Not applicable Operational lease
2010 Cell C South Africa American 1,400* $430m Sale and leaseback
2010 MTN Ghana American 1,876 $218.5m for 51% Joint venture
2010 Starcomms Nigeria SWAP 407 $81m Sale and leaseback
2010 Millicom / Tigo DRC Helios 729 $45m for 60% Joint venture
2011 Millicom / Tigo Tanzania Helios 1,020 $80m for 60%** Joint venture
2011 MTN Uganda American 1,000 $89m for 51% Joint venture
2012 Orange Uganda Eaton 300 Unknown Sale and leaseback
2012 Warid Uganda Eaton 400 Unknown Sale and leaseback
2012 MTN Cameroon IHS Africa 827 $143m Sale and leaseback
2012 MTN Cote d’Ivoire IHS Africa 931 $141m Sale and leaseback
2013 Orange Cameroon & Cote d’Ivoire IHS Africa 2,000+ Unknown Managed services
2013 Orange/Telkom Kenya Kenya Eaton 1,000+ Unknown Managed services
2013 Vodacom Tanzania Helios 1,149 “$50-75m for 75.5%” Joint venture
*Cell C deal included 1,400 existing towers plus additional towers under construction
**Millicom/Tigo’s stake in Helios Towers Tanzania reduced to 24.5% after Helios acquired towers from Vodacom Tanzania in 2013
How TowerXchange tower counts are calculated A note on power pass through contracts
Our tower counts are typically obtained by simply asking the CEO of each towerco to One of the most common questions posed to TowerXchange is whether the cost of
confirm how many sites they own and manage and market in each country. power is passed through to the tenant in Africa, a model which is prevalent in India.
However, these counts should be considered our best estimate as it is impossible to In the absence of a power pass through, towercos are incentivised to invest to
guarantee each towerco has complied exactly with our request to include only active reduce energy opex. While we've received no formal confirmations, TowerXchange
sites, not contracted further BTS sites, and complied with our request that sites that understands all the tower deals in Africa do NOT pass through power to the tenant, with
are only managed, not managed and marketing, be excluded from the count. the possible exception of American Tower's deals in Ghana and Uganda with MTN.
6 | TowerXchange Issue 5 | www.towerxchange.com www.towerxchange.com | TowerXchange Issue 5 | XX

The future of the African towers, but we respect the confidentiality of
tower transactions, so we can only forecast in
which markets we think tower transactions may
tower industry take place, we can’t tell you which operator’s
towers will come to market.
TowerXchange forecasts that independent towercos will own or
The current state of the African tower
manage and market 30% of Africa’s towers by the end of 2014 industry - the “proof of concept” phase
Towercos worldwide have been proved more Regular TowerXchange readers will recognise
efficient at managing towers than telecom this graphic on the next page from our last
operators. The capital markets recognise edition: this is our view of the current state of
this, rewarding the split between passive the African tower industry. See issue four of
infrastructure and the retail risk of customer- TowerXchange for our detailed commentary on
facing telecoms by increasing valuations of the current state of the African tower industry.
separated entities.
Updates since issue four:
So as the independent towerco business
model becomes more proven in Africa, more < Announcement of a second transaction in
towers come to market, more capital is raised Tanzania (Vodacom selling 1,149 towers to
by towercos, and the pace of transactions Helios Towers Africa)
accelerates. We think the future of the African < A small deal potentially imminent in Burundi
tower industry is all about the transfer of towers (see the FTS interview in this edition)
from operator-captive to independent towercos < Hints at potential deals in the medium-term
- it’s a question of when, not if, in the majority of in Mauritius and Chad (see the news section)
African markets.
TowerXchange’s tower count (see page 5 of
So in this edition I thought I’d share a sneak this edition) suggests there are currently 22-
preview of my opening address at the 23,000 towers owned or managed and marketed
Kieron Osmotherly, TowerXchange Founder
TowerXchange Meetup - our vision of the future by independent towercos in Africa. The total
As African telecom markets liberalise and of African towers. This analysis comes with the number of towers in Africa is tough to quantify,
mature, towers cease to be a source of usual TowerXchange caveats - this forecast is our but for the purpose of this analysis we’ll use an
competitive differentiation. There is a valuation “best guess”. We’re qualitative not quantitative estimate of 150,000, which would mean towercos
incentive for operators first to market to sell market researchers - we spend hours every day own or manage and market approximately 15%
their towers. talking to key stakeholders in emerging market of Africa’s towers.

TowerXchange tower transaction heatmap - current state
Index of countries
Algeria Malawi
Angola Mali
Benin Mauritania
Botswana
1 Mauritius
Burkina Faso Mayotte
Burundi 2 Morocco
Cameroon 2
Cape Verde
3 Mozambique
Namibia
Central African Republic 4 Niger
Chad Nigeria 2
Comoros
5 Rwanda
Congo Brazzaville 6 Réunion
Cote d’Ivoire 2 Senegal
Democratic Republic of the Congo Seychelles
Djibouti Sierra Leone
Legend Egypt Somalia

Equatorial Guinea South Africa
No tower transaction completed or rumoured
Eritrea South Sudan
Either rumours of a tower transaction
Ethiopia Sudan
(unconfirmed), or the country is known to be
on at least one towerco’s hit list, or there is a Gabon Swaziland
registered Africa Towers subsidiary in the country Gambia São Tomé and Príncipe
Rumours of a potential tower transaction have Ghana 3 Tanzania 2
been confirmed by TowerXchange Guinea Togo
Tower transaction believed to be imminent Guinea-Bissau Tunisia
One or more tower transactions have taken place, Kenya Uganda 2
no more transactions expected imminently Lesotho Western Sahara
One or more tower transactions have taken place, Liberia Zambia
Source: TowerXchange
more transactions are expected imminently
Libya Zimbabwe
Number of tower deals in this market if more
Madagascar
than one

How this map could look by the 2015-16: the “scale and Towercos ability to raise the necessary capital is
end of 2014 - the “acceleration” consolidation phase” subject to the prevailing economic conditions. There
seems to be a pool of investors who are comfortable
phase
When will the African towercos run out of capital? investing in the American and European tower
TowerXchange forecasts ten further tower Africa’s PE-backed towercos are going to need industry, and another pool comfortable investing
transactions (either full sale and leaseback or to substantially refinance if they are to have in Africa, and relatively few investors at the
supped-up managed services deals with BTS the digestive capacity to absorb all the towers intersection - as a community, we need to evangelise
programmes) in Africa before the end of 2014. coming to market, particularly if highly attractive, the African tower industry and attract more
In addition, we expect the maturation of Airtel’s large portfolios in Nigeria become available. IHS investors to the market.
formative Africa Towers strategy, bringing to announced their impressive raising of US$1bn of
market an estimated 18,000 towers across their capital to date (see News), but a sizable transaction More expertise is needed - there are only so many
17 countries. in Nigeria could cost that much alone, never mind “tower people” and only so many people with
the additional capex to upgrade structures and proven African telecoms management experience
I will present a detailed breakdown of this power solutions. and again the intersection of the two groups is a
forecast at the TowerXchange Meetup, but it is shallow pool that needs to deepen if the acceleration
summarised with our graphic on the next page American Tower are currently in a category of in growth of the tower industry is to proceed along
showing of how we expect the TowerXchange one with the strength of their balance sheet, and the lines we have forecast.
tower transaction heat map to look by the end of TowerXchange forecasts ATC will close several
2014. transactions in Africa in the next 18-24 months. When TowerXchange started our research 18
But American Tower has appetite for only so much months ago, we spoke to a lot of senior decision
TowerXchange expects the number of towers country risk, and Africa has to compete for ATC’s makers at operators who were skeptical of the value
owned, or at least managed and marketed, by investments with opportunities in their domestic proposition of selling their towers to independent
independent towercos to increase by more than market as well as in the Americas and Europe. towercos. But today every one of Africa’s tier one
30,000 by the end of 2014. Such a volume of MNOs has structured deals with towercos or are
transactions which will test the capital raising If African towercos scale to portfolios of 10,000+ seeking to do so. The African tower industry has
and management resources of Africa’s ‘Big Four’ towers, and if they continue to trade in line with reached “launch velocity” - it has an unstoppable
towercos to the limit. As a result, we expect at their acquisition economics, then institutional momentum - and I hope you’ve enjoyed reading
least one more international towerco to enter the investors and infrastructure funds may enter the our view of how far the African tower industry can
African market during the coming year. market and we may see a phase of consolidation progress in the coming years.
starting in 2015-16.
Assuming the total number of towers in Africa Kieron Osmotherly will present TowerXchange’s
increases to 175,000, towercos would own or Trying to forecast how the heatmap might look two detailed forecast for the next 2-3 years of the
manage and market over 30% of Africa’s towers to three years from now would be a futile endeavor African tower industry at the TowerXchange
by the end of 2014. - there are too many variables. Consolidation among Meetup on October 1 and 2. For details, visit
operators could change the landscape dramatically. www.towerxcahnge.com/meetups/africa

How TowerXchange forecasts the tower transaction heatmap to look by the end of 2014
Index of countries
Algeria Malawi
Angola Mali
Benin Mauritania
Botswana
1 Mauritius
Burkina Faso Mayotte
Burundi 2 Morocco
Cameroon 2
Cape Verde
3 Mozambique
Namibia
Central African Republic 4 Niger
Chad Nigeria 3
Comoros
5 Rwanda 2
Congo Brazzaville 6 Réunion
Cote d’Ivoire 2 Senegal
Democratic Republic of the Congo 2 Seychelles
Djibouti Sierra Leone
Legend Egypt Somalia

Equatorial Guinea South Africa 2
No tower transaction completed or rumoured
Eritrea South Sudan
Either rumours of a tower transaction
Ethiopia Sudan
(unconfirmed), or the country is known to be
on at least one towerco’s hit list, or there is a Gabon Swaziland
registered Africa Towers subsidiary in the country Gambia São Tomé and Príncipe
Rumours of a potential tower transaction have Ghana 3 Tanzania 3
been confirmed by TowerXchange Guinea Togo
Tower transaction believed to be imminent Guinea-Bissau Tunisia
One or more tower transactions have taken place, Kenya 2 Uganda 3
no more transactions expected imminently Lesotho Western Sahara
One or more tower transactions have taken place, Liberia Zambia
Source: TowerXchange
more transactions are expected imminently
Libya Zimbabwe
Number of tower deals in this market if more
Madagascar
than one

IHS surpasses US$1 billion confidence in the IHS vision and management. We
are also very excited that our existing shareholders
have further increased their investments in the
capital raised in the past 12 months company. IHS has established itself as Africa’s
leader in the mobile tower sector. Raising over
US$1 billion in 12 months is a clear sign of a strong
sovereign wealth funds to IHS’ already strong business model and a vote of confidence from new
shareholder base. The capital raise marks the and existing shareholders in the future growth of
second time this year that an international fund has mobile telecoms in Africa. We are now uniquely
made its first investment into Africa through IHS positioned to expand into new markets whilst
and highlights the strength of IHS’ platform and the supporting our current operations in Nigeria,
global attractiveness of market leaders in Africa. Cameroon and Cóte d’Ivoire. Over the last two years
The other first-time African investor, Wendel, we have tripled our towers under management
one of Europe’s leading investors, completed an across Africa to 8,500. This new financing round is
investment into the company earlier in the year and critical to our aim to increase the portfolio to 20,000
participated in the round. towers under management, and will underpin our
value creation strategy in the years to come”
IHS will draw significant benefits from its
newest shareholder by having direct access to Transaction details:
additional financial and intellectual resources.
The partnership will further support IHS’ success New debt: US$280 million new debt finance
in Africa while continuing to provide a strong led by the World Bank’s International Finance
investment platform for new and existing investors, Corporation (IFC)
Issam Darwish, CEO, IHS Africa
that also reconfirmed their support in IHS by New equity: US$100 million from new investors
IHS Towers, Africa’s largest independent mobile participating in the round. and US$142 million from existing investors
infrastructure company, has secured US$522 million
of debt and equity, led by new and existing lenders IHS will utilise the proceeds to finance the IHS Towers currently has 8,500 towers in its tower
and shareholders. The combined transaction, which construction of more than 1,000 build-to-suit (BTS) portfolio and has built over 3,000 for its clients,
represents one of the largest capital expansion towers in Nigeria, Cóte d’Ivoire and Cameroon, to making it Africa’s largest independent mobile
initiatives in Africa during the last 12 months, invest in solar and energy efficiency solutions, and infrastructure provider. In Q1 2013, IHS signed
brings the total financing raised by IHS Towers to to fund further expansion into new markets. an agreement with Orange in Cameroon and Cóte
over US$1 billion. d’Ivoire to manage over 2,000 sites for a term of
Issam Darwish, Vice Chairman and Chief Executive 15 years. This adds to the 1,758 towers that IHS
The transaction also marks another significant Officer, IHS Towers, said “We welcome our newest bought from MTN Group in October 2012
milestone with the addition of one of Asia’s premier shareholder and we are proud to have their vote of

American Tower acquires 5,400 towers Etisalat hires Deutsche Bank
to sell subsidiary Zantel’s
in US plus 500 in Costa Rica from GTP towers in Tanzania - Reports
for US$4.8bn
TMT Finance broke a story that Etisalat had
American Tower has acquired the majority of assets new macro sites and thus drives co-location revenues. hired Deutsche Bank to lead the sale and
from the largest privately owned tower operator in the Applications for tenancies on American Tower’s own outsourcing of Tanzanian subsidiary Zantel’s
US, GTP. sites have been at record levels in 2013. tower portfolio, which comprises 711 towers
located primarily in Zanzibar.
American Tower’s latest acquisition has secured Implications for emerging market towers
high quality assets with strong existing cash flows While benchmarks are not readily transferrable from Multiple sources in Tanzania suggest Zantel’s
and significant opportunity for future growth. The the domestic US market to less mature and more towers are on the market, and the regional
tenancy ratio on GTP’s domestic portfolio is believed operationally complex emerging markets, this deal nature of the Tanzanian tower network
to be around 2, while American Tower’s is 2.6, with illustrates what emerging market tower portfolios suggests there may still be a healthy market
the difference attributable to the younger age of GTP’s have to compete with to attract investment from
for Zantel’s sites, despite previous transactions
assets. GTP’s towers typically have capacity for four international towercos.
in the country, Helios having acquired over
tenants without the need for upgrade investment.
2,400 towers from Millicom-Tigo and Vodacom.
While this transaction temporarily brings American
This acquisition extends American Tower’s runway for Tower’s leverage up to 5.8, above their target range
TowerXchange spoke to executives at Deutsche
growth in their domestic market. With an acquisition of 3-5%, they have expressed intent to bring that back
Bank and Etisalat who neither confirmed
of 5,400 towers, many in top metropolitan markets, down to within the target range in the short term, and
nor denied the report. Etisalat are known to
plus 9,000 domestic managed sites (primarily rooftops), the company expressed an appetite to continue to seek
favour the appointment of third party advisors
and with 70% of GTP’s revenue coming from the ‘Big acquisition opportunities. American Tower has been
to advise on the sale towers, and they have
Four’ carriers, American Tower has strengthened their linked with opportunities to acquire towers from MTN
hand to secure business as 4G deployment shifts into a in South Africa, Rwanda and Zambia in recent months. worked with Deutsche Bank previously to
higher gear. advise on a strategic review of its African
The GTP deal illustrates the strength of American Atlantique portfolio.
4G growth Tower’s balance sheet and access to capital markets,
American Tower Chairman, President and CEO Jim with the US$4.8bn purchase price (subject to some post Etisalat are coming to the African tower
Tailcet characterises 4G deployment as an 8-10 year closing adjustments, and inclusive of the assumption market late after an abortive attempt to
process in which various carriers are between years 1 of about US$1.5bn of existing GTP debt) funded largely structure a pan-African deal last year. Etisalat
and 3. Phase one, according to Taiclet, is characterised through the company’s current liquidity of over $3.2bn now prefers a country by country approach,
by substantial amendment revenue as carriers add and their existing capacity under their revolvers. empowering local their local opcos to lead the
additional equipment to existing sites. Phase two, process
which some US carriers are entering, tends to require The deal is expected to close in Q4 2013

American Tower acquires 2,790 towers Participate in the
in Brazil and 1,666 towers in Mexico TowerXchange
Earlier this Summer, American Tower announced Officer of American Tower, said: “Through this community
that it had reached an agreement with NII Holdings, acquisition, American Tower will gain significant
Inc. to acquire up to 2,790 towers in Brazil and incremental scale in our Mexican and Brazilian
Tower
1,666 towers in Mexico in two separate transactions, operations, and we anticipate leveraging the manufacture
for approximately $413 million and $398 million, strong demand backdrop in both markets to drive & installation
respectively, based on current foreign currency meaningful revenue and cash flow growth for many
exchange rates. American Tower expects to use cash years to come.”
on hand and borrowings under its existing revolving Investors & Independent
advisers towercos
credit facilities to fund the acquisition. “We are excited to reach agreement with American
Tower and achieve our goal of unlocking the value
The majority of the portfolio consists of towers of a significant portion of our tower assets while
located in and around major population areas and raising additional liquidity,” said Steve Shindler, chief Tower Xchange
along major highways. On average, the towers have executive officer of NII Holdings.
a tenancy ratio of just over one tenant per tower, Decision
Regulators makers
providing significant opportunities for future site The transactions are subject to regulatory approvals
& policy at
leasing growth. Nextel Brazil and Nextel Mexico and the initial closing under each transaction is makers operators
have agreed to leaseback the towers from American expected to be completed in the fourth quarter of
Tower for a minimum 12-year initial lease term with 2013. These initial closings are expected to be followed Equipment
additional renewal options thereafter. by subsequent closings of additional tranches of & managed
services
towers as certain closing requirements relating to the
Jim Taiclet, Chairman, President and Chief Executive remaining tranches are satisfied
Millicom and Orange re-engaging in African tower deals?
TMT Finance also quote anonymous sources suggested Millicom is considering spinning off towers in Join the TowerXchange LinkedIn™ group at
Senegal, Rwanda, Mauritius and Chad. The source suggested Helios Towers Africa have an exclusivity
www.linkedin.com/groups/
agreement in place with Millicom which would put them in pole position to acquire the towers.
TowerXchange-4536974
TMT Finance quote anonymous sources suggesting Millicom is considering spinning off towers in Egypt as
well as in several West African countries

Tower People Rare opportunity for an
experienced procurement
professional to join a
fast-growing, successful
tower company.
Salary to £110k
+ excellent benefits package
Central London
Our client is a rapidly expanding Towers Company with

more than 1,500 sites across the African subcontinent. The
position is for a Group Director of Procurement with
responsibility for a current annual spend of £70-£80
million. We’re looking for someone with a background in
improving profitability and lowering purchase costs
through strategic procurement solutions and contract
negotiation. You should have first-rate procurement
experience within the African Towers market.
Please send your resume to
[email protected]
New CEO for Airtel Africa
Christian de Faria will replace Manoj Kohli as CEO strategy. The moves come at an interesting time as
of Bharti Airtel’s African operation, effective from Airtel’s Africa Towers starts the separation of the
January 1, 2014. De Faria was formerly Group Chief infrastructure part of the Group’s African footprint
Commercial Officer at MTN. The well travelled new
Cell C’s Pasley moves into the CFO’s office
CEO has over 30 years experience in leadership roles
at telcos worldwide. Chief Strategy Officer Robert Pasley will now be
even more involved in tower strategy as he has also
Kohli returns to India to head up International assumed the role of CFO for the fast-growing South
operations and advise on M&A and tower African operator

TowerXchange appoints Arianna Neri as
Head of Americas
As TowerXchange extends our footprint beyond Africa

and into South and Central America, Arianna Neri
joins TowerXchange on October 1 as our new Head of
Americas. Are you looking for a new member of staff with relevant
Arianna will be building relationships with key tower
experience in the emerging market telecom tower industry?
industry stakeholders in the Americas, preparing the
programme for our TowerXchange Meetup Americas Get your job noticed by the best potential candidates by advertising in
2014, and commencing coverage of the region in future TowerXchange journal and on our website and reach out to over 2,700 of the most
editions of the TowerXchange Journal. skilled individuals in the tower industry - TowerXchange is read by CEOs, CTOs,
CFOs, commercial, engineering, operations and investment experts.
Arianna is crossing over to telecoms from previous
roles hosting communities and events for oil and gas
infrastructure, where she has spent over four years
To see your advert here, contact Annabelle Mayhew on +44 (0)7423 512588 or
working for Clarion Events and Jacob Fleming. Arianna email [email protected]
has a degree in law from Universitá di Bologna, and Tower Xchange
she speaks Italian, English and Spanish

MTN’s tower strategy
BMI view
South Africa and Nigeria are MTN’s biggest
could open up Rwanda

markets by a wide margin, in terms of both
revenue and subscriptions. For the six months
ended June 2013, the countries accounted for 65%
and Zambia of MTN’s consolidated revenue and 40% of its

total subscriber base. These factors, along with
other market dynamics, including the presence
Guest columnist Kenechi Okeleke of BMI shares his view
of multiple international players and the volume
of potential MTN tower transactions of economic activity, make MTN’s tower assets
in South Africa and Nigeria the most attractive
for investors. However, it appears the operator is
Keywords: BMI Analysis, biding its time in making a move to outsource its
Research, Market Forecasts, tower infrastructure in both markets. This shifts
MNOs, Towercos Acquisition, attention to MTN’s remaining ten markets in
Market Overview, 4G, Universal Africa. Of these markets, BMI believes Rwanda and
Access, Infrastructure Sharing, Zambia will appeal most to investors.
Africa, Rwanda, Zambia, Nigeria,
MTN’s tower deals in Cameroon and Cóte d’Ivoire
South Africa, Helios Towers
underscore the company’s inclination towards
Africa, IHS, American Tower,
tower outsourcing, where possible, across its
Airtel, Africa Towers, MTN, BMI African subsidiaries. Prior to the deal with IHS
Kenechi Okeleke, Senior Analyst, BMI
Towers in October 2012, MTN had executed
tower sale and leaseback deals with American
Read this article to learn:
Tower Corp. (ATC) in Ghana in December 2010
< Reviewing MTN’s tower strategy in South Africa, Nigeria, Cameroon, Cote d’Ivoire, Ghana
and in Uganda a year later. MTN has expressed
and Uganda satisfaction with the positive effect of its tower
< Macroeconomic indicators and telecom market dynamics that suggest Rwanda and Zambia deals on the bottom line performance of its
would be strong growth markets for towercos units in the four countries. This will encourage
< Pros and cons in Rwanda: price competition and low ARPUs, slow subscriber penetration growth, the operator to implement a similar strategy in
mandated rural network extensions and a nationwide LTE network announced the other countries it is present in the region,
< Zambian initiatives to encourage network infrastructure development in underserved areas, creating significant growth opportunities for tower
including the UAP investors in those markets.

Rwanda And Zambia are good bets and other stakeholders in the entire tower value 8.2% between 2000 and 2012 and poverty has
As investors wait for MTN’s move in its prime chain. been significantly reduced. In Zambia, growth
markets, there are considerable opportunities is driven by rising exports and diversification of
in some of the operator’s smaller markets. Two Rwanda and Zambia share some macroeconomic the economic base. BMI is forecasting economic
countries that stand out in the small operations and industry-specific characteristics, which partly growth of 7.4% in 2013, a slight improvement on
cluster, as classified by MTN, are Rwanda and explain the rationale for MTN to join its assets in the already impressive real GDP expansion of
Zambia. There have been media reports of MTN’s both countries in a single deal, akin to the MTN- 7.3% in 2012. On the downside, the two countries
intention to jointly sell around 1,500 towers in both IHS deal involving 1,758 towers in Cameroon and are landlocked and predominantly rural, with
markets. Although these reports were yet to be Cóte d’Ivoire. On the positive side, both countries 77% of Rwanda’s population and 63% of Zambia’s
confirmed at the time of writing, BMI’s assessment have relatively stable political environments and population living in rural areas.
of the countries’ macroeconomic indicators and are forecast to see strong economic and private
telecoms market dynamics points to strong growth consumption growth over the next few years, albeit With respect to the telecoms sector, Rwanda
potential for tower outsourcing. We believe MTN’s from low bases. and Zambia boast the presence of multiple
tower outsourcing strategy could soon open both international operators, including Airtel which
markets to investment by independent tower firms Annual economic growth in Rwanda averaged competes with MTN in both markets. The main risk
associated with the two countries is the high cost
9.9%
In positive territory - real private consumption growth (%) of infrastructure rollout and maintenance owing
to their geographical locations and poor social
8
infrastructure in rural areas.
Meanwhile, recent developments in Rwanda and

6 Zambia suggest that both markets are ready for
third-party tower-sharing services. Some of these
are highlighted in the overviews of the market
4 dynamics in both countries below.
Rwanda: price competition and coverage

targets call for tower sharing
2 Rwanda’s mobile market hosts three international
operators - MTN, Tigo and Airtel. MTN is the
dominant player with a market share of 56.1% at
the end of Q213, although this has been trending
2011 2012 2013f 2014f 2015f 2016f 2017f downwards since mid-2012 owing to increased
competition. Airtel’s arrival fuelled further price
Rwanda Zambia F = BMI forecast. Source: BMI competition in the market, but did not significantly

improve subscriptions growth as the market Growing competition KTC plans to invest US$140mn in the project and
recorded double-digit growth in just one of the The slow subscriptions growth is attributable to Rwanda’s government says it will contribute its
five quarters between April 2012 and June 2013. poor network coverage in rural areas where more 3,000km fibre-optic network assets, spectrum and
As a result, the government’s target of a 60% than two- thirds of the population live. Rwanda’s a wholesale licence. The government has invited
penetration rate by the end of 2012 was missed by a mobile subscriber base and penetration rate mobile operators to invest in the project, too, as
wide margin. BMI calculates that the country had a reached 6.415mn and 55.3% at the end of June 2013. it begins raising more capital for the network
penetration rate of 50.5% at the end of 2012. While BMI forecasts the penetration rate to rise to deployment. Rwanda plans to cover 95% of the
61.3% by the end of 2013 and 80% in 2017, we note population by 2016. We believe this can best be
Rwanda mobile operators by market that weak rural coverage is a significant risk to the achieved by means of significant investment in
share (%), June 2012 downside for our outlook. tower deployments across the country.
Extending network coverage to rural areas in Zambia: already into tower sharing but
Rwanda is an expensive venture, given the poor independent players need to drive growth
social infrastructure outside the cities and major MTN competes with Airtel and Zamtel in Zambia.
towns. Meanwhile, intense price competition in There is strong competition in the market, with
14.3%
the market has ramped up the downward pressure the largest operator, Airtel, having a market
on operators’ revenues and, consequently, profit share of less than 50%. Although the market was
margins. MTN’s Rwanda unit has the second spared the brutal price competition that spread
lowest ARPU across its entire footprint at US$2.8 across the region for most of 2011 and 2012,
in Q213. The requirement to meet strict network ARPUs are relatively low, hovering around the
56.1% rollout targets in underserved areas and the US$5 mark, while high operating expenses add
29.6% prospect of lower ARPUs considering the low to the downward pressure on profit margins.
income levels in those areas creates the need for Meanwhile, subscriptions growth is fairly muted
better cost management in network deployment considering that mobile penetration is well below
and maintenance. We believe one of the strategies 100%. According to BMI data, the country’s mobile
operators will be considering to achieve this is penetration was 71.1% at the end of 2012 and is
tower outsourcing. forecast to reach 91.2% by 2017.
In addition to cost pressures for operators, BMI The government of Zambia has implemented
believes the government’s ambitious LTE rollout a number of policies to encourage network
plan also creates significant opportunities for the infrastructure development in underserved
MTN Tigo Airtel tower market. In June 2013, Rwanda’s Ministry areas, including a tax waiver on communication
of Youth and ICT and Korean telecoms operator equipment issued in March 2011 and the launch
KT Corporation (KTC) announced a partnership of a universal access project (UAP) in November.
Source: BMI, RURA, Operators to build a nation-wide LTE network in Rwanda. The UAP is a joint effort by the Zambia Information

and Communication Technology Authority (ZICTA) of the UAP, we do not rule out the likelihood of Who will be interested?
and Airtel to construct and manage more than 350 MTN and Zamtel getting uncomfortable with We expect the leading independent tower firms
shareable towers across the country. The country’s certain aspects of the project, including deployment in Africa to find the prospect of expanding into
three mobile network operators as well as TV and strategies, service delivery and cost, in the future. Rwanda and Zambia attractive given their relatively
radio stations can use the towers for a fee set by stable political environments, positive economic
Airtel and ZICTA. In view of the potential pitfalls in the UAP project, outlooks and telecoms market growth potential.
BMI believes that ZICTA’s tower-sharing initiative MTN has so far worked with ATC and IHS, two
The UAP is the first major step towards and coverage targets would be better served by of the big four tower firms. This supports the
towersharing in Zambia. While the move has the the participation of independent tower firms. MTN argument that both firms will be in pole position
potential to boost network rollout to rural areas and is the most likely of the three operators to initiate to clinch the operator’s next tower outsourcing
generate cost benefits to operators, the argument tower outsourcing in Zambia, especially if recent deal. However, Helios Towers has already acquired
against Airtel’s direct participation in the project media reports are true. We also believe Airtel and towers from Tigo in Tanzania and the DRC and is
and the possibility of it gaining undue advantage Zamtel will be open to renting capacity on third likely to set its sights on the operator’s Rwanda
over its rivals could undermine the benefits of the party-managed towers in order to improve their unit. This could make it push for a deal with MTN
project. Despite the best intentions of the promoters services and trim costs. in Rwanda in order to scale up its assets in the
country.
Under pressure: MTN Zambia ARPU (US$)
6 Meanwhile, India’s Bharti Airtel is believed to be
keen on hiving off its tower assets to Bharti Infratel,
its subsidiary that owns around 34,000 towers in
India. Bharti Airtel has an 80% stake in Infratel
and also a 42% stake in Indian-based tower joint
4 venture Indus Towers, which owns almost 112,000
towers across 15 circles in India. Another option
could be to create a new subsidiary to manage its
18,000-strong tower portfolio in Africa. Either way,
it is increasingly likely that the operator will play
2 a more active role in the tower market, possibly
before the end of 2013. This could significantly
change the landscape and dynamics of the region’s
tower market
Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q512 www.businessmonitor.com/bmo
Series 1 F = BMI forecast. Source: BMI

Share Square: Senegal
Senegal Mobile Operators – Market Share
While Senegal is similar to Mali in terms of population
and age profile of the population, the country has
a GDP per capita (in PPP terms) twice that of its
Mott MacDonald analyse the prospects for a tower deal in Senegal
neighbour at $2,2006. ARPUs are low – Orange reports
ARPU of €6 for 2012, down by 8.4% due to strong price
competition from unlimited plans and an increase in
3 MNOs: Orange Senegal, Tigo (Millicom), Expresso (owned by Sudatel)
lower usage customers7. Subscriber acquisition in 2012
Active
Subscriber penetration at ~86.5% with 99% of all subscribers using pre-paid SIMs. Strong subscriber
growth in 2012 of 23%. 3G penetration at 4%. shows that Expresso, as the new entrant, competed
No tower sharing to date – but Orange’s relationship with Eaton and Tigo’s (Millicom) relationship strongly for customers, growing from 864,000 to 1.7M,
with Helios would suggest strong potential for a deal nearly doubling in size. Orange was able to grow by its
Current Sharing
Market opportunity dictated by continued deployment of 3G, however strong competition between customer base by 17% while Tigo grew by 11%.
operators may limit opportunity for high lease up rate – at least initially ... however...
Passive
Sudatel (Expresso) is reported to be considering selling its African assets. Change of control There is no indication of tower sharing to date in the
may provide a TowerCo with opportunity to support Expresso’s new owner’s continued rollout
country. However, given that Orange has a strong
relationship with Eaton Towers and Tigo (Millcom)
with Helios, it would not be surprising to see a towerco
Egypt considering entry into this market. The situation is
None
made more interesting by recent reports that Sudatel,

who owns Expresso, is looking to sell its stake in its
Senegal
African operations8. This might provide an opportunity
for a recently established towerco to provide sites for
3G 4G expansion plans of the new owners of Expresso.
Technology Development
Opportunity for TowerCo entry with Opportunity for Outsourcing Limited opportunity for new The operators will continue to focus on 3G deployment:
focus on high Lease Up Rate (LUR) by MNO to TowerCo entrant TowerCo with land line penetration at 282,000 lines and Internet
lines estimated at less than 96,000, mobile offers the
Senegal has a population of 13.51 million and is served by only real viable Internet access option
Senegal Mobile Operators 3 mobile network operators: Orange Senegal (62% market
1 CIA World Factbook – data is estimate for July 2013
share)2, Tigo (Millicom – 23% market share) and Expresso 2 Orange owns 42.3%, Tigo is 100% owned by Millicom, and
15% Sengal (Sudatel – 15% market share). With 11.5 million Expresso is 75% owned by Sudatel.
Orange 3 ARTP (Regulator)
subscribers, penetration is estimated at 86.5%, and grew
4 GSMA
23% Tigo at 23% in 20123. 99% of subscribers use pre-paid SIMs 5 CIA World Factbook
62%
and 3G penetration is estimated at 4%4. As with many 6 ibid
Expresso Sudatel 7 Orange web site.
African countries the population is young: it is estimated 8 Reported in TeleGeography on 22nd March – Sudatel plots mass
that over 63% are 24 or younger5. exodus; African subsidiaries up for grabs.

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Vodacom and Etisalat’s
TowerXchange: Please you to introduce yourself
and your role in tower strategy.
tower strategy
Douglas Lubbe, Group Executive: International
Business Development, Vodacom Group: I’m
part of the International business team, involved
A sneak preview of the operator keynote panel session at the TowerXchange Meetup in tower strategy across Vodacom’s non-South
African businesses: DRC, Lesotho, Mozambique
One of the highlights of the TowerXchange Meetup on and Tanzania, where we recently closed a tower
October 1 and 2 in Johannesburg will be the operator transaction. My role includes central strategy and
keynote panel session, seeking insights into the experiences operational responsibilities.
and strategies of the top tower decision makers at some of
Africa’s leading operators. TowerXchange shares a sneak Tim Knowles, Head of M&A, Etisalat: I run the
M&A team at Etisalat. My team also supports our
preview of that panel in conversation with Vodacom’s
OpCos on any tower transactions. Within Etisalat,
Douglas Lubbe and Tim Knowles of Etisalat.
tower transactions tend to be led at an OpCo level,
although I have some dedicated members of my
Michel Faivre of Orange will also be part of the panel
team to support transactions.
- you can read an interview with Michel in issue 3 of
TowerXchange. TowerXchange: How would you summarise
Vodacom and Etisalat’s current tower strategy in
Keywords: TowerXchange Meetup Preview, MNOs, Deal Africa?
Structure, Valuation, Due Diligence, Opex Reduction, Co-
locations, Data Room, First Mover Advantage, New Market Douglas Lubbe, Group Executive: International
Entrants, Leasing & Permitting, Sale & Leaseback, Stakeholder Business Development, Vodacom Group: We
Buy-in, Infrastructure Sharing, Africa, Tanzania, Nigeria, evaluate each market on its own merits, considering
Vodacom, Etisalat the local market dynamics. We have no rigid tower
strategy applied across the organisation. If we
Read this article to learn: arrive at a view that a tower transaction makes
< The merits of pan-African tower deals versus evaluating each market individually sense in a certain country and it helps us achieve
< How tower auctions work our organisational goals, then we’ll pursue it.
< The challenge of assembling comprehensive data for due diligence
< The implications of tower transactions for supply chain partners Tim Knowles, Head of M&A, Etisalat: Etisalat tried
to do pan-African tower deal, but it didn’t work
< How a large transaction in Nigeria could impact the African tower market
out, and it made us late to market. Now we take a

“
more opportunistic, country by country approach, in that market, and if we can still secure first mover
considering tower transactions if it makes sense for advantage, then we have no problem getting the
the local OpCo. But we don’t view towers as a core local management team and stakeholders engaged.
asset.
Whether there’s the possibility of a tower
TowerXchange: What criteria inform the If the OpCo needs several transaction or not, we encourage our OpCos to
structure of a tower transaction - for example millions of dollars in extra spend less on new builds and to use co-locations
a full sale and leaseback versus a long-term capex and we don’t have it where they can.
managed service deal versus structuring a joint
for them, yet they have to
venture where you retain equity in the towerco?
Tim Knowles, Head of M&A, Etisalat: In some

markets Etisalat might need to retain a stake
because of the credit worthiness of the country
and the financial strength of the assets, while in
compete with other operators
on coverage, then it is easy to
bring up the possibility of a
tower deal
“ Douglas Lubbe, Group Executive: International
Business Development, Vodacom Group: The group
role is to support the OpCo in achieving the desired
operational results. When we look at potential
tower strategies at a group level, we come up with
the best scenarios available for each market, and
others we would be happy to fully exit - whatever that could include tower transactions. Negotiating
maximises the attractiveness of the portfolio to the a tower deal takes a lot of management time,
towercos, while meeting our needs. so we tend to manage it centrally to free OpCo
needs of that OpCo, for example supporting them in management to focus on day-to-day issues.
Douglas Lubbe, Group Executive: International fulfilling coverage obligations, or if they are later to
Business Development, Vodacom Group: We market, accelerating rollouts. TowerXchange: I appreciate you can’t talk about
consider the requirements of each market any active tower auctions that may be in the
individually and would structure a transaction If there is limited capex available, we’ll advise what market, but if you were going to solicit interested
according to the needs of that market. financial structures and transactions they should parties to bid for a portfolio of towers, how
look at, we’ll recommended advisers, and use our would you do it?
TowerXchange: Can you talk about the role of the Group leverage over towercos as relationships can
Group HQ-level strategists in tower strategy and be extended from one market to the next. Tim Knowles, Head of M&A, Etisalat: As a whole we
the role of the local OpCo stakeholders. tend to use advisers, again to protect management
Usually there is no problem getting the local bandwidth. There are three or four banks with
Tim Knowles, Head of M&A, Etisalat: In general we management teams engaged with a potential tower some depth of experience of transactions of this
favour outsourcing technology or towers - there’s a transaction. If the OpCo needs several millions of nature, a couple of which know Etisalat particularly
push toward outsourcing across the whole portfolio. dollars in extra capex and we don’t have it for them, well.
yet they have to compete with other operators on
As I mentioned, tower strategy is driven locally by coverage, then it is easy to bring up the possibility Once there’s board-level approval for a deal,
OpCos, but our Group team will help to diagnose the of a tower deal. If the towercos are already active there is a lot to sort out internally - having all the

“
documentation and permits is not a foregone local team to assemble the documentation - sending
conclusion in Africa. It can be surprisingly difficult a secondary team to support information gathering
to work out the real opex costs at each site. is not really an option for us as it would not add any
value to that process.
Once we get all that information together, we have
to define our organisational priorities, for example Partnering with a towerco is If you decide you want to embark on a tower
whether we’re going to sell and leaseback our transaction, you’ve got to ensure all your ground
like a marriage, and a quick
towers to maximise the cash released, or whether leases and approvals are up to date. Simple things
we are going to prioritise stabilising and reducing
opex. Then we go to market with a teaser to solicit
indicative bids. We evaluate the offers, choose the
most valid bid, and bring that back to our clearance
team, who negotiate to maximise the price.
separation is not possible,
so it’s important to choose
the right partner on what is
important for the business
“ like the ability to cede a lease can often frustrate a
transaction.
Most big operators have been running for ten or

more years, so it can be a real challenge to get
the required documents in place. You also need
That’s how we’ve typically run the process. In one to understand what information the towerco is
previous instance we were trying to maximise the looking for, as their metrics are different from
proceeds, in other instances our priorities were yours - try to get a handle on those data sets prior to
more focused on outsourcing and reducing the strategy, management team and investor goals the negotiation; understand their requirements to
amount of management time concentrated on and then see how these fit with your long-term future proof yourself!
towers. organisational goals. Partnering with a towerco
is like a marriage, and a quick separation is not Tim Knowles, Head of M&A, Etisalat: From my
Douglas Lubbe, Group Executive: International possible, so it’s important to choose the right experience this is the biggest headache!
Business Development, Vodacom Group: Our partner on what is important for the business.
recent transaction was not an auction however Some of our OpCos are old, and the documentation
this does not rule out the possibility that this type TowerXchange: Can you give us a bit more colour may not always be complete. At times in Africa
of approach could be followed in other markets. on the preparation of information about a tower there has been a culture of not always getting all
Of critical importance is understanding the portfolio - what kind of information is required the permits you need - only when selling assets do
capabilities and abilities of the tower operators in for due diligence, and how do you gather that you need to chase paper and ensure everything is
our markets and what they bring to the table. We information? stamped and done properly.
also use advisers, and a similar process to the one
Tim described. Douglas Lubbe, Group Executive: International Sometimes we’ll send a couple of people from
Business Development, Vodacom Group: The data Group to be on the ground and support this process.
Because of the long duration of a towerco sets are pretty standard for a tower transaction
relationship, you have to evaluate all the - towercos are clear on the information that they At some of our newer companies, such as
commercial offers, and evaluate the towerco’s need to run their models. You have to rely on your Afghanistan, all the information is in place. But in

“
Etisalat’s older markets gathering information for TowerXchange: What happens after a portfolio
due diligence can take many months. Calculating of towers has been transferred to a towerco -
the opex can take a surprising amount of time, what is the role of the operator, for example in
we’ve found that OpCos don’t always have true equipment and service partner selection?
grasp of costs on a per site basis.
Douglas Lubbe, Group Executive: International In some smaller markets, I
Tower deals are time consuming and complex, and
can take many months!
TowerXchange: Please talk to us about the

implications of tower transactions for your
existing supply chain partners. For example,
Business Development, Vodacom Group: After a
tower deal, passive equipment is no longer our
concern. We hold the towerco to SLAs and how they
achieve those SLAs is their business.
Tim Knowles, Head of M&A, Etisalat: Again, we

don’t believe towercos are
necessarily prepared to invest
the capital they need to. They
don’t see them as attractive
markets
“
when do your suppliers find out about a deal? haven’t closed any deals yet, but I’d imagine the role
of the operator would depend if they retain a stake
Douglas Lubbe, Group Executive: International in the towerco. Operationally, it’s now the towerco’s
Business Development, Vodacom Group: In our problem.
case we already had a managed services contract, understanding of Africa. The existing four
and we felt we could engage with certain external TowerXchange: From your perspective, do the leading towercos should be able to meet market
parties without jeopardising the deal. existing towercos have the digestive capacity to requirements, but if Nigeria does come to market, it
acquire a substantial portion of African towers? will be interesting to see the impact.
Tim Knowles, Head of M&A, Etisalat: Etisalat have Are there gaps in the market for niche towercos
not closed any tower transactions in Africa yet, targeting smaller markets? Douglas Lubbe, Group Executive: International
although we have a number of transactions in Business Development, Vodacom Group: In some
progress. Tim Knowles, Head of M&A, Etisalat: I think the smaller markets, I don’t believe towercos are
real question is whether they have the financial necessarily prepared to invest the capital they need
Many of our outsourcing contracts are structured to capacity. The big tower market not in play yet is to. They don’t see them as attractive markets. The
allow review if towercos were to take over. Nigeria, where MTN alone have 10,000 towers. I towercos seem to focus on large markets first, to
think it would be tough to do a single deal there. achieve growth, then they may look at clusters of
Unfortunately suppliers further down the food small markets.
chain often have to be the last to find out. We try We’re also concerned about management
to make sure existing suppliers are taken over by bandwidth at the towercos; are they able to ensure Hear more from Douglas Lubbe and Tim Knowles as
towercos - if we’re joining forces with a towerco that QoS across all their local companies as they expand? they participate in the operator keynote panel at the
has already been formed, it’s a different situation TowerXchange Meetup, taking place on October 1
compared to when we’re first movers. Personally, I’m not sure if additional towerco and 2 in Johannesburg. For more information, visit:
players have the necessary appetite for and www.towerxchange.com/meetups/africa

Meetup Africa 2013
October 1 and 2, Birchwood Hotel, Johannesburg
A unique, invitation-only gathering of the top 200 decision makers
in the African tower industry
The TowerXchange Meetup facilitates dialogues between operators, towercos, and investors to accelerate
tower transactions, while examining the impact on the supply chain and showcasing innovations proven
to reduce opex.
This unique event features small group, round table sessions dedicated to key infrastructure sharing topics
or regions, enabling you to tailor your agenda to your learning and networking objectives.
Register now at www.towerxchange.com/meetups/africa. Questions? Call Annabelle on +44 7423 512588

Diamond Sponsor: Silver Sponsors: Bronze Sponsors: Media and association partners:
developed by
TowerXchange Meetup Schedule
Day one, Tuesday 1 October <Ahjeeth Jaijai, Investec <David Porte, Vice President, International, SBA
<Daniel Lee, Managing Director, Intrepid Advisory Communications
From 8:00 Registration and coffee Partners
<Christian Skaanild, Partner, Capital International 11:00 Morning coffee and networking
9:00 Welcome and opening remarks Private Equity Funds
<Aniko Szigetvari, Head - TMT Group, IFC 11:30 Partner selection shootout
9:10 The current state of the African tower <Gilles Tre-Hardy, Lazard
industry and forecasts for the next three years <Nina Triantis, Managing Director, Global Head of 12:30 Networking lunch
<Kieron Osmotherly, Founder & CEO, Telecoms & Media, Standard Bank
TowerXchange 2:00 Third structured networking round table
5:20 Close of Day one
9:40 Mobile network operator tower decision 3:20 Afternoon coffee and networking
makers panel: 5:30 Operator and towerco only drinks reception
<Michel Faivre, Directeur Programme Partage 6:30 Main drinks reception 3:40 Case study: the launch and expansion of
d’Infrastructure AMEA, Orange 8:00 Dine-around (evening meal is not included in TowerCo of Madagascar
<Douglas Lubbe, Group Executive: International your registration fee) <Laurent Roineau, General Manager,
Business Development, Vodacom International TowerCo of Madagascar
<Tim Knowles, Head of M&A, Etisalat Day two, Wednesday 2 October
4:00 Where value is being created and where
10:40 Morning coffee and networking 9:00 How towercos are valued: public towerco value is being destroyed in the African tower
11:00 First structured networking round table valuations and private market M&A multiples industry
<Jonathan Atkin, Managing Director, RBC Capital <Andrew Snead, Managing Partner SSA,
12:20 Networking lunch Markets Delta Partners
<Fede Membrilla, Managing Partner and Head
1:40 Second structured networking round table 9:20 Towerco keynote panel: of Corporate Finance, Delta Partners
3:00 Afternoon coffee and networking <Inder Bajaj, CEO, Helios Towers Nigeria
3:20 Investor keynote panel: <Chuck Green, CEO, Helios Towers Africa 4:20 Summary and closing remarks
<Chris Gabriel, Senior Adviser, Macquarie and <Alan Harper, CEO, Eaton Towers <Kieron Osmotherly, Founder & CEO,
former CEO, Zain Africa <Fazal Hussain, CEO, SWAP International TowerXchange
4 | TowerXchange Meetup | www.towerxchange.com www.towerxchange.com | TowerXchange Issue 5 | 31

Our speakers and panelists will include
TowerXchange Round Table Ropics and Expert Hosts
Jonathan Atkin, Managing Director,
RBC Capital Markets
Inder Bajaj, CEO, Helios Towers Nigeria How our structured networking round tables work
Michel Faivre, Directeur Programme Each “Round table” is a 80-minute structured networking session assembling participants in groups of
Partage d’Infrastructure AMEA, Orange 8-10, brought together by a common regional or topic matter interest, and arranged so each group ideally,
includes 1-2 MNOs, 1-2 towercos, an investor, advisor, OEM or managed service provider, energy equipment
Chris Gabriel, Senior Adviser, Macquarie
and a static asset or RMS manufacturer.
and former CEO, Zain Africa
Chuck Green, CEO, Helios Towers Africa
Alan Harper, CEO, Eaton Towers Country-specific round tables ‘Real’ asset management - how to identify the
Fazal Hussain, CEO, SWAP International capital investments that deliver the best RoI
Country focus: Tanzania Hosted by Norman Hosted by Jannie van Rhyn, General Manager,
Ahjeeth Jaijai, Investec
Moyo, CEO, Helios Towers Tanzania Inala Infrastructure Intelligence
Daniel Lee, Managing Director, Intrepid
Advisory Partners
Country focus: Nigeria Hosted by Fazal Hussain, Optimising the relationship between towercos
Douglas Lubbe, Group Executive:
CEO, SWAP International and hybrid systems suppliers Hosted by David
International Business Development,
King, CEO, Flexenclosure
Vodacom International
Country focus: South Africa Hosted by Keith
Tim Knowles, Head of M&A, Etisalat How to protect your sites from theft of fuel
Boyd, Managing Director, Eaton Towers South
Fede Membrilla, Managing Partner and Africa and equipment Hosted by SiteOne
Head of Corporate Finance, Delta Partners
Laurent Roineau, General manager, Country focus: DRC Hosted by Jeff Schumacher, How to progress from reactive to proactive
TowerCo of Madagascar Chief Commercial Officer, Helios Towers DRC maintenance Hosted by Satish Kulkarni, CEO,
David Porte, Vice President, International, Invendis
SBA Communications How to reduce opex
Christian Skaanild, Partner, Capital How to conduct a green power feasibility study
International Private Equity Funds Business models for buying and selling energy Hosted by Satish Kumar, Africa Project Manager
Andrew Snead, Managing Partner, SSA, by the kWh Hosted by Bob Hurley, VP MEA, Eltek – Green Power for Mobile, GSMA Mobile for
Delta Partners Development
Aniko Szigetvari, Head - TMT Group, IFC How to efficiently implement intelligent power
systems Hosted by Bill Bubenicek, Managing How to conduct a green power feasibility
Gilles Tre-Hardy, Lazard
Director, Clean Power Systems study (repeat session) Hosted by Areef Kassam,
Nina Triantis, Managing Director, Global
Director – Infrastructure, GSMA Mobile for
Head of Telecoms & Media, Standard Bank
Development

How to build a separate P&L for each tenant Director of Director of Compliance and Safety, How to structure a tower carve out
Hosted by Asher Avissar, CEO, AIO Systems Helios Towers Africa Hosted by Andrew Doyle, Managing Director,
Communications & Technology, Mott MacDonald
Upgrading passive infrastructure and Health, Safety and Security Working Group
extending networks II: Access Control and PPE Hosted by David Structuring African tower transactions: which
Meganck, Founder & COO, Acsys and Hemmant type of transaction works best? Hosted by Jeff
Tower strengthening and power system Sapra, President, Karam Eldredge and/or Robert Dixon, Partners, Vinson
upgrades for multiple tenants Hosted by MER & Elkins
Telecom Tower strategy
The investibility of African telecom towers
Buyer beware: is the cheapest price the lowest How towercos achieve SLAs Hosted by Glyn Hosted by Nina Triantis, Global Head of TMT,
total cost for passive infrastructure products? Sowerby, General Manager – SMC Operations, Standard Bank
Hosted by Anni Boddington, CEO, TESA Africa Quintica
How to engage key group and local
How to audit the tenancy capacity of legacy How to measure and improve Tower Cash stakeholders at operators to improve the
towers from a structural and power systems Flow chances of closing tower transactions Hosted
perspective Hosted by Gary Staunton, CEO, Hosted by Udhay Mathialagan, Chairman, by Chris Gabriel, Senior Adviser, Macquarie;
Likusasa Tarantula Chairman, Clean Power Systems & Former CEO,
Zain Africa
How to make rural communications How to measure and maximise performance
commercially viable Hosted by MER Telecom + and the achievement of SLAs Hosted by How to raise capital for tower transactions
special guest Laurentius Human, CEO, Inala Hosted by Alex Leigh, Business Development
Director, Helios Towers Africa
How to make the economics of rural How to overcome the perceived country risk,
connectivity work by combining low cost, low political risk and operational risk of operating Beyond passive infrastructure sharing
power base stations with community power towers in frontier markets Hosted by Monty
and value added services Hosted by Dion Simus, CEO and Chris Lundh, COO, Frontier Business models for towercos to move
Jerling, Director of Special Projects, Connect Tower Solutions beyond passive infrastructure sharing
Africa into FTTT, transmission sharing and active
Opportunities to buy, sell or build smaller infrastructure sharing Hosted by Hallgeir
Health, Safety and Security portfolios of less than 300 towers in Africa Juliebo, HSJ & Partners
Hosted by Nathan Foster, CEO and Mike Powers,
Health, Safety and Security Working Group I: Legal Director, Atlas Tower Active RAN sharing is coming, is your tower
Policy & Practice Hosted by Marnus van Wyck, strategy future proofed? Hosted by Nick
Managing Director, EMSS and Nick Summers, Elverston, Partner, Herbert Smith Freehills

Optional post-Meetup workshops
Thursday 3 October, 9:00 - 4:30 11:15 How to raise capital for emerging market 2:00 How to maximise the value of passive
Light lunch and refreshment breaks provided tower transactions infrastructure through the sale and leaseback
of towers
9:00 The implications of 3G or 4G deployment for This workshop will explain how to demonstrate the
tower operators investibility of an emerging market telecom tower This workshop will explain how to structure a tower
transaction. transaction to meet your organisational objectives, and
Whilst mobile penetrations are reaching high levels in how to drive the strategy for the sale and leaseback of
some African countries, all expectations are that there is We’ll explore the financing options available given the tower assets.
still considerable growth remaining across the continent. risk, size of investment, hold and potential returns of
The growth in penetration will come through providing investment in emerging market towers. We’ll consider Operators able to bring their tower assets to market in
voice and SMS services to currently unconnected people; the relative cost, availability and appetite of debt, private a timely manner can secure first mover advantage and
something which 2G technologies can easily accommodate. equity, development fund and infrastructure fund finance. a premium valuation, while those left behind risk their
As experienced all over the world though, there will towers becoming stranded assets on their balance sheets.
also be significant growth in data use, particularly given And we’ll examine tower portfolios from an investor’s
the generally limited reach and capabilities of fixed
perspective in terms of country risk, regulation, <Defining your objectives, including the balance of
infrastructure. 3G and 4G technologies will be needed to
competitive environment, the credit worthiness of anchor capital release and opex reduction
meet this demand. However, there can be very different
tenants and the key components of potential Tower Cash <The information you need in your data room
drivers and outcomes when deploying 3G/ 4G compared to
Flow (TCF) in terms of tenancy ratios, demand and capacity <How towercos conduct due diligence to evaluate tower
2G. This workshop will seek to explore some key areas that
for additional tenancies, and operating costs. portfolios
may impact tower operators.
<Identifying the best deal structure to meet your needs:
<What are the technical underpinnings of 3G and 4G <How to secure a terms sheet to demonstrate your ability operational leases versus sale and leaseback versus
(in particular), and why is this important to towercos? to finance a winning bid retaining a stake in a joint venture
<How far will 3G/ 4G deployment reach, and how can <The due diligence investors will conduct on your <What you need to know about the documentation that
towercos assist? business and on your prospective tower transaction underpins a tower transaction
<What capacity densities might be needed, and can/ <What you need to know about the documentation that <How to solicit and negotiate bids
will towercos offer more than macro sites? underpins a towerco investment <Priorities after the deal has been agreed – what needs to
<Will there be any impact due to Single RAN solutions, <What level of gearing will investors permit towercos to be done during the ‘run period’ and who should do it
and can towercos maintain their revenues? reach before they wait for proven results before
<Will active shared infrastructures be deployed, and investing again?
what might the implications be for towercos? <Thinking ahead: refinancing and exit strategies 4:30 Close of workshop day
Your workshop hosts About your workshop host

Andrew Doyle, Managing Director, Technology & Daniel Lee is the “rainmaker” of African towers, having worked on eight different tower transactions, advising
Communications Practice, Mott MacDonald mobile operators such as MTN, Millicom and Cell C. Daniel has also worked closely with a number of independent
and Dave Tanner, Director of Technology Strategy towercos, including assisting them in raising capital to finance transactions. Daniel recently left Citi to form Intrepid
and Design, Mott MacDonald Advisory Partners – an independent advisory firm focused on the tower industry.
34 | TowerXchange Issue 5 | www.towerxchange.com www.towerxchange.com | TowerXchange Meetup | 5

TowerXchange’s unique structured networking round tables
TowerXchange roundtables bring together 8-10 representatives
of different segments of the tower industry ecosystem, brought
together by a common geographical focus or hot topic. There
are 3 roundtable sessions at the Meetup, each new roundtable
“reshuffles” the decision maker-level participants at your table so
you will meet several different prospective partners.
Partner selection shootout

in Progress
Small groups of buyers recieve

5 minute demonstrations
200 Director, VP and C-level Decision makers broken down

as follows:
Mobile Network Operators
Towercos
Investors and Investment Management Advisors
Lawyers and Strategic Consultants
Energy Equipment Providers
OEMs & Managed Service Providers
Static Assets (10), Access Control & Monitoring and Management
www.towerxchange.com | TowerXchange Issue 5 | 35

6 | TowerXchange Meetup | www.towerxchange.com
Tower Industry Value Chain
How TowerXchange ensure an audience
of decision makers
Investors: private equity, debt finance, infrastructure funds
Many of our clients complain that similar events have
Investment management advisors Law firms failed to deliver genuine decision makers; that won’t be
the case at TowerXchange.
Strategic consultancy Group level strategists
Independent Towercos Due diligence C-suite & network planners at local OpCos
Sell co-locations
The TowerXchange Meetup is exclusively for Director, VP
Demand forecasts
Upgrade capacity Valuations and C-level decision makers. If registrants are substituted,
Build-to-suit
Mobile Network Operators we will only accept replacement registrants of equal or
Transfer assets to
Maximise uptime greater seniority than those pre-approved.
Some become
Reduce opex
towerco
Invest in network Outsource

to Through our passive infrastructure focused journal
Subcontract
Tier 1 OEMs Outsource
publication and research, TowerXchange have cultivated
to relationships with 3,052 (at time of press) decision
Subcontract
or in-house makers in African towers, 85% of whom are at Director,
Managed service providers VP or C-level.
Construction services Static assets Monitoring & 0&M services More importantly, we have personal relationships with
Turnkey infrastructure rollout Towers & masts management Maintenance the 200 or so individuals with genuine strategic and
Manufacture of steelwork Shelters RMS Staffing procurement decision making responsibilities. The
Import, customs & delivery Brackets Intelligence/analysis Spare parts TowerXchange Meetup has been requested and designed
Leasing & permitting Enclosures Site management VMI?
by the top decision makers in African towers, so you can
Installation of towers Lighting Job ticketing Refueling
be confident that the vast majority of those key contacts
Upgrades for capacity Fencing Asset lifecycle platform
O&M services Energy as a service will be at the event.
Access control
Dynamic assets Who will you meet
Energy equipment Batteries Air conditioning ESCOs TowerXchange serves the African tower community
Diesel genset Rectifiers Lightning protection Microgeneration along two intersecting axes. On a horizontal axis we
Solar Inverters Controller Community power facilitate relationships between MNOs, towercos,
Wind Line conditioning Voltage regulator investors and their advisers, aiding the structuring
Fuel cell PIUs
of deals and the transfer of assets. On a vertical axis,
we examine the impact on, and opportunities for, the
passive infrastructure supply chain, whether they
sell to MNOs, towercos or through OEMs.
Backhaul, FTTT, Core Network Active equipment
www.towerxchange.com | TowerXchange Meetup | 7

36 | TowerXchange Issue 5 | www.towerxchange.com
Sample of registered delegates to date at the TowerXchange Meetup
Operators and towercos Africa Investors and advisers
Chief Commercial Officer, DRC Helios Towers DRC
CEO, Africa Towers (Airtel’s towerco) CEO, Helios Towers Nigeria Head: TMT Coverage, Absa Capital / Barclays
Operations Director, Africa Towers (Airtel’s Chief Marketing Officer, Helios Towers Nigeria Partner, AT Kearney
towerco) CEO, Helios Towers Tanzania Investment Analyst, Capital International
Key Accounts Manager, Africa Towers (Airtel’s Senior Manager: M&A, MTN Partner, Capital International Private Equity
towerco) Directeur Programme Partage d’Infrastructure Funds
CEO: Africa, American Tower AMEA, Orange Managing Partner, Ergos Energy
Head: Power Solutions, American Tower VP, Business Development, SBA Communications Head - Telecom, Media & Technology Group, IFC
CEO, Atlas Tower Vice President - International, SBA Investment Banking Specialist, Investec
Legal Director, Atlas Tower Communications Consultant, Investec
Special Projects Director, Connect Africa Group CTO, Smile Communications Senior Advisor, Macquarie
CEO, Eaton Towers CTO, Smile Communications Managing Director, Mott MacDonald
Managing Director, Eaton Towers Kenya General Manager, Stelekom Global Network Ltd Director of Technology Strategy & Design, Mott
Business Development Director, Eaton Towers CEO, SWAP International MacDonald
South Africa Director Real Estate Consulting South Africa, Head of Africa, Mott MacDonald
Group Corporate Finance Operator, SWORN MD: Energy & Infrastructure, Shanduka Group
Econet Wireless Senior Manager, Telkom Mobile MD, Global Head of Telecoms & Media, Standard
Head of Mergers and Acquisitions, Etisalat Executive, Telkom Mobile Bank
Director - Valuations M&A / Corporate Strategy, Executive, Telkom Mobile Investment Banking Credit Manager, Standard
Etisalat Managing Executive, Telkom SA SOC Ltd Bank
Chief Operations Officer, Frontier Tower General Manager, Towerco of Madagascar Managing Partner, SSA, Delta Partners
Solutions Chief Technology Officer, Vimpelcom (Telecel Managing Partner and Head of Corporate
Chief Executive Officer, Frontier Tower Solutions Zimbabwe) Finance, Delta Partners
Chief Commercial Director, Globalcom Group Business Performance Partner, Vodacom Partner, Herbet Smith Freehills
CEO, Helios Towers Africa Manager, Network International Operations Managing Partner, HSJ Partners
COO, Helios Towers Africa Support, Vodacom Group Managing Director, Intrepid Advisory Services
Business Development Director, Helios Towers Executive: International Business Development, Merger and Acquisitions, Lazard
Africa Vodacom International Partner, Vinson & Elkins
Director of Compliance and Safety, Helios Towers Africa Project Manager, GSMA Mobile for
4 | TowerXchange Meetup | www.towerxchange.com www.towerxchange.com | TowerXchange Issue 5 | 37

Development Energy solutions VP Sales, AIO systems
Director of Infrastructure, GSMA Mobile for VP Marketing, AIO systems
Development VP & CEO, Ascot CEO, Galooli
Managing Director, RBC Capital Markets Area Manager, Ascot General Manager, Infrastructure Intelligence,
Managing Director, Clean Power Systems INALA
Turnkey infrastructure and managed services Market Strategy and Planning Manager, Cummins CEO, INALA
Managing Director, DAQs Europe Sales Director, Qowisio,
CEO - Africa, Alkan VP MEA, Eltek Commercial Director, Telemisis
Country Manager, Alkan Regional Sales Manager, Eltek
Sales Account Manager, Alkan Managing Director, SSA, Emerson Network Power Towers and components
Director Business Development, Camusat VP of Global Marketing, Emerson Network Power
Deputy CEO, Camusat Sales Manager, Enatel Channel Manager, Dialight
Member of the Board of Directors, HOI - MEA Global Accounts Manager, FG Wilson Head - Telecom and structures, Ganges
Infrastructure Sharing Project Manager, HOI - VP Strategy, Flexenclosure Internationale
MEA CEO, Flexenclosure Co-Founder, President and CEO, Geostrut
Country Manager, HOI - MEA VP eSite, Flexenclosure CEO, Intelli Towers Ltd
CEO, Leadcom Head of Emerging Markets, Gildemeister Marketing Manager, Orion
Business Development, Leadcom Director, SSA, Heliocentris Head of Business Development, TESA Africa
SVP, Lemcon CEO, TESA Africa
CEO, Likusasa RMS and site management systems Sales Manager, International, Valmont Site Pro 1
Managing Director, Likusasa, Export Sales Manager West Africa, Valmont
Divisional Director - Group Sales, Likusasa CEO, azeti Network Structures
VP Sales and Marketing, MER Telecom VP Sales and Marketing, azeti Network
Regional Director Africa, MER Telecom Executive Chairman, Tarantula Others
Head - Projects & Strategy, NEWL Sales Director EMEA, Tarantula
Business Development Manager, NEWL Marketing Manager, Tarantula Founder, Acsys
Managing Director, Reime East Africa General Manager: SMC Operations, Quintica COO, Acsys
Chief Marketing Officer, Reime/ACME Strategy Director, Quintica Managing Director, Anzac Cables & Wire
Managing Director, Reime/ACME Global Key Account Manager, HMS Industrial President Africa, Ceragon,
Deputy Sales Director, Sagemcom Networks VP, CHANNEL IT NIG LTD.
Energy & Site Management Product Manager, Founder & CEO, Invendis Managing Director, EMSS Consulting
Sagemcom VP Business Development, Invendis President, PN International (Karam)
Co-founder and CEO, AIO systems Chief Executive Officer, Site Acquisition Services
38 | TowerXchange Issue 5 | www.towerxchange.com www.towerxchange.com | TowerXchange Meetup | 5

Delegate Registration
TowerXchange Meetup Africa 2013, October 1 and 2, Birchwood Hotel, Johannesburg
To register, complete, scan and email this form to [email protected] or register online at www.towerxchange.com
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unless special permission is granted – contact [email protected] if you wish to apply
for 3 or more passes or for an exception to our Director, VP or C-level rule.
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Special rates are available for full time employees of towercos and operators ONLY. Contact [email protected] to request a
Discount Codes
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Package Description
participation in 4 round table sessions, after hours networking receptions. Package does NOT include accommodation or evening meals.
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< Substitution policy: you may substitute subscribers
registered delegates for colleagues, as long as alternate
attendees are also Department Heads, Director, VP or C-level
I agree to the terms of this registration Date Regrettably no cancellations can be accepted.
Register online now at http://bitly.com/18EXCSg

Special Feature:
Tanzania case
study
With the second major tower transaction in Tanzania
between Vodacom and Helios Towers Africa following
the sale of Tigo’s towers to the same entity; with
Zantel’s towers believed to be on the market; and
with Airtel having registered Africa Towers in the
country, Tanzania is fast becoming a model market for
infrastructure sharing.
As well as the tier one MNOs, several significant

tier two and ISP players exist as potential tenants,
including Smile who already offer LTE services in
major cities, hinting at potential amendment revenue
for towercos as LTE is more widely rolled out.
In this special feature, TowerXchange draws upon the

TCRA and the GSMA’s Green Power for Mobile East
Africa Market Analysis for contextual data, adds some
colour to the recent Helios Towers Africa transaction
in Tanzania in conversation with CFO Andres de
Orelans-Borbon, and speaks to NEWL, Tanzania’s
leading managed service provider.
Don’t miss:
41 Infrastructure sharing in Tanzania
43 HTA to acquire 1,149 towers from Vodacom
46 A view of Tanzania from the front lines
at NEWL

Case study: infrastructure
rolling out LTE, TTCL, BOL and Sasatel, as well
as active infrastructure sharing pioneers Rural
NetCo.
sharing in Tanzania With operators seeking to expand beyond their

After Helios Towers Africa’s recent acquisition of 1,149 towers from Vodacom Tanzania, regionalised footprint, but the politics of tower
TowerXchange thought it would be a good time to examine the tower market in Tanzania. swaps complicated, Tanzania was an obvious
target for exponents of the independent towerco
model.
Helios Towers Africa acquired 1,180 towers

from Millicom-Tigo in 2011, and have reportedly
improved service levels. Helios Towers Africa
recently added the aforementioned 1,149 towers,
constituting the entire Vodacom Tanzania
network. Tigo and Vodacom are now minority
shareholders in Helios Towers Tanzania, owning
24.5% each. TowerXchange features an interview
with Helios Towers Africa CFO Andres de
Orleans-Borbon later in this special feature.
Reports suggest Zantel’s towers could be the next

portfolio to change hands in Tanzania, while
Airtel has registered an Africa Towers subsidiary
in the country.
Tanzania looks set to become a keenly observed

Image: Luisa Puccini example of how independent towercos can
accelerate infrastructure sharing, stablise and
The Tanzanian market evolved with a distinctly are Airtel, who are dominant in the Lake Zone,
improve opex, and support the extension of
regional pattern to network rollout, with each of while Tigo is strong in coastal areas and Zantel
networks into rural areas!
the four tier one MNOs (Vodacom, Airtel, Tigo and are very strong in Zanzibar.
Zantel) dominant in different regions. Market
Tanzania market overview
leaders Vodacom are particularly strong in the Tanzania also hosts several tier two, niche
The GSMA Green Power for Mobile Programme
Arusha area, just behind them in market share operators and ISPs including Smile, which is
published an excellent report which

1%
30%
Vodacom 34%
Airtel 30%
34%
Tigo 24%
24%
Zantel 11%
TTCL, Benson, Sasatel
and Smile make up 1%
31%
Source: TCRA, December 2012
TowerXchange recommends to our readers;

‘Powering Telecoms: East Africa Market Analysis’.
In the report, the GSMA size the Tanzanian market
as having 4,593 cell sites in Q3 2012, up from 3,671
in 2011, and forecast an increase in the number
of base stations to 5,474 by 2013. The same report
quantifies the number of subscribers in Tanzania
as 26.8m in 2012, with penetration of mobile
services at 62% and coverage at 75.8% of the
population.
According to the IEA, World Bank, urban

electrification is just 40% in Tanzania, and rural
electrification 2%. The 2009 Electricity Act set
a target to raise electrification to 30% of the
Tanzanian population by 2015.
The GSMA count 1,442 of Tanzania’s cell sites being

off-grid, with 30.7% of off-grid sites running DG
24x7, 65.5% running DG-battery hybrid, and just
56 sites (3.9%) classified as Green Power. 52% of
the remaining 3,151 on-grid sites were classified
as unreliable (receiving less than 6 hours of grid
power per day). As a result, diesel makes up 57% of
opex at on-grid sites in Tanzania

Helios Towers Africa to acquire TowerXchange: Congratulations on Helios
Towers Africa’s deal with Vodacom Tanzania!
What was the rationale for the deal?
1,149 towers from Vodacom Tanzania
Andres de Orleans-Borbon, CFO, Helios Towers
TowerXchange presents an exclusive interview with Helios Towers Africa CFO Africa: Tower transactions are typically
Andres de Orleans-Borbon motivated either by financial engineering or by
operating reasons. Emerging market operators
The big transaction this Summer in the African with successful international strategies like
tower industry was the announcement of Helios Vodacom don’t need cash, so in this case the
Towers Africa’s intent to acquire 1,149 towers motivation was operational.
from Vodacom Tanzania, in a deal valued between
Vodacom are the number one operator in
US$50-100m in which Vodacom acquired a 24.5%
Tanzania, and they are investing in an important
stake in Helios Towers Tanzania, which had
network expansion. They needed access to most
previously acquired 1,180 towers from Millicom- of the infrastructure Helios Towers Africa owned
Tigo in the East African country. Helios Towers in Tanzania, and they needed a programme to
Africa’s CFO Andres de Orleans-Borbon generously build a large number of new towers.
took the time to speak to TowerXchange about the
deal. Vodacom and Vodafone are tenants on Helios
Towers in Tanzania, Ghana and the DRC, so
Keywords: News, Sales & Leaseback, Build-To-Suit, 4G, they knew they could rely on us to manage their
Interview, Deal Structure, Network Rollout, Execution towers and to rollout new infrastructure. And
they liked the towerco platform and took a stake
Risk, Pass-through, Densification, Decommissioning,
in that platform - the deal includes Vodacom
Private Equity, Infrastructure Sharing, Africa, Tanzania,
acquiring a 24.5% equity in Helios Towers
Helios Towers Africa, Vodacom, Millicom, Tigo
Andres de Orleans-Borbon, CFO, Helios Towers Africa Tanzania.
Read this article to learn: TowerXchange: What can you tell me about
< The structure of Helios Towers Africa’s recent deal acquisition of 1,149 towers from Vodacom Tanzania the structure of the transaction and the
< The balance of cash release vs opex reduction in this deal BTS programme? There are reports that the
< The impact of LTE on the tower market acquisition price was US$75m - is that correct?
< The implications of this transaction for Zantel’s towers in Zanzibar
< How to navigate the risks of investment in emerging market towers
Andres de Orleans-Borbon, CFO, Helios Towers
Africa: The only guidance I can give you is that it

is within the US $50-100m range. might want to decommission one of two adjacent The other operators, Sasatel, TTCL, Benson, Smile
HTT and Vodacom towers as both operators are and Rural NetCo are all important customers
What I can tell you about the deal is that it’s a shareholders in the towercos, the discussion and will likely lease capacity on ours and other
long-term contract, that it includes all 1,149 of is an easier one. Where operators buy into the operators’ towers.
Vodacom Tanzania’s existing towers, and that towerco, it suggests the deal is fair for all parties.
it reduces Vodacom’s Total Cost of Ownership TowerXchange: After the two transactions by
in terms of the discount to opex plus the TowerXchange: With LTE being trialed and Millicom and Vodacom, is there still a market
maintenance capex. From a cash flow point of rolled out in Tanzania, what’s the impact on for Zantel’s towers?
view, the transaction releases immediate savings the tower market?
for Vodacom. Andres de Orleans-Borbon, CFO, Helios Towers
Andres de Orleans-Borbon, CFO, Helios Towers Africa: Zantel is very strong in Zanzibar so their
All sites built under the build-to-suit (BTS) Africa: The impact of LTE varies from country to tower assets have value. If Zantel want to sell,
programme will be, owned, managed and country. If LTE is rolled out at a higher frequency we’ll talk to them.
marketed by Helios Towers Tanzania. All the than 2G and 3G, then operators will need to
other operators have access and are interested in densify their networks. If operators need higher This transaction doesn’t end Helios Towers
the sites. density, they don’t want to build new towers Africa’s appetite to own further infrastructure
and own every tower, so independent towercos in Tanzania and make it available to all mobile
TowerXchange: Is there a power pass through can fill the gaps in the network. Towercos need operators.
clause or does Helios Towers Tanzania take on new technologies being rolled out and new
all the energy opex risk? technologies need towercos. In any market where towers have been
transferred from operator-captive to independent
Andres de Orleans-Borbon, CFO, Helios Towers TowerXchange: Please introduce us to the towercos, there is still a market for towers in
Africa: There are many components to the deal, tower market in Tanzania. unique locations. If towers for sale are located
but I can tell you that we take on the brunt of right next to other towerco owned sites, they
the risk - if the grid fails, that is our problem, if Andres de Orleans-Borbon, CFO, Helios Towers might attract a reduced valuation, so there is an
efficiency is improved, that is our gain. Africa: There are four large operators in advantage to being first movers.
Tanzania; Vodacom, Airtel, Millicom and Zantel.
Vodacom are convinced we can achieve TowerXchange: Finally Andres, as Helios
efficiencies, otherwise they wouldn’t have taken a The infrastructure can be broken down into three Towers Africa have been pioneering first
stake in the towerco. pools of assets; Airtel own their towers, Zantel movers in African towers, what progress
own their towers and Helios Towers Tanzania has been made in demonstrating reduced
When an operator retains a stake it incentivises will own the towers that were the heritage of execution risk in what is still quite a new
them to work with us as partners to ensure the Millicom and Vodacom. All three pools of towers African tower industry?
towerco is successful. For example, when we will likely be available to all operators in a
competitive market. Andres de Orleans-Borbon, CFO, Helios Towers

“
Here’s the press release about the deal: Helios Towers Africa to partner with
Vodacom in Tanzania
Helios Towers Africa (HTA), the leading, network operator in Africa. This partnership model
independent, telecoms towers company in Africa, is core to HTA’s offering.
announces that its Tanzanian subsidiary, Helios
Towers Tanzania (“HTT” or “the Company”) has By collaborating with its customers and being solely
It takes a certain type of
reached an agreement with Vodacom Tanzania focused on providing a telecoms infrastructure
investor to be attracted to Limited (“Vodacom”), Tanzania’s leading mobile solution, HTA helps its customers to achieve their
opportunities in emerging network operator to acquire 100% of its existing goals of reducing operating cost, preserving capital,
tower network in the country for stock and cash in focusing on their core business, and mitigating
markets. While you can’t
take the risk out, towercos
are one of safest investments
in emerging markets
“ Vodacom Group’s first ever towers transaction.
The partnership between HTT and Vodacom

involves the transfer of 1,149 existing telecoms
towers from Vodacom to HTT and a commitment
to an ambitious, short-term rollout which will see
the proliferation of towers through infrastructure
sharing, as they expand network coverage and
capacity to meet demand and improve quality of
service.
The structure of the cash and shares transaction,

a significant increase in points of service owned by which involves Vodacom acquiring a 24.5% share in
HTT and more than doubles HTT’s existing presence HTT, also demonstrates the belief and confidence of
in Tanzania. a leading African telecoms operator in the business
model of tower sharing and in the business model
Transaction highlights and operational capabilities of HTA.
Africa: It takes a certain type of investor to be
< HTT acquires all of Vodacom’s existing passive
attracted to opportunities in emerging markets.
infrastructure and supplies Vodacom with a The transaction is subject to customary closing
While you can’t take the risk out, towercos are
significant increase in points of service in conditions and regulatory approvals.
one of safest investments in emerging markets.
Tanzania
You need to know what you’re doing to prosper < Vodacom to lease back the infrastructure subject Chuck Green, Chief Executive Officer of HTA, added:
in emerging markets, so it’s important to choose to a long term contract
your management team very carefully. < Pro forma for the acquisition, HTA will be “HTA is proud to be chosen by Vodacom as its
providing close to 2,700 points of service to partner for the ownership and management of its
Vodacom are smart investors - their international Vodacom and affiliates across Africa existing infrastructure and as the solution provider
business is doing very well. Millicom is a very for its future roll out. This is a ground-breaking
entrepreneurial operator. When two such The deal will expand HTA’s tower coverage in Africa move for Vodacom and their equity investment
companies want a piece of your business, it’s a to 4,700 owned towers and is another example of is a significant endorsement of HTA’s reputation,
huge vote of confidence in Helios Towers Africa HTA partnering with an industry-leading mobile management team and operating track record”
and in the emerging market tower industry

A view of Tanzania from
TowerXchange: Please introduce our readers to
NEWL
the front lines of the market’s Peter Kiloli, Business Development Manager, NEWL:
NEWL was registered as a company on 1987. Our
leading managed service provider initial focus was on general engineering supplies
and services, and we had agreements with various
How infrastructure sharing is creating economies of scale for NEWL and for their clients parastatals to maintain their vehicles. In 2000,
NEWL entered the telecoms market, and in 2001 we
commenced our first tower maintenance contract
Keywords: Who’s Who, with CelTel (now Airtel).
Managed Services,
Leasing & Permitting,
In the 21st century NEWL has diversified our
O&M, Construction,
service portfolio to include site audits, tower
Installation, NOC, 4G,
Opex Reduction, Skilled management services, installation, commissioning,
Workforces, Warehousing, network field operations and maintenance, and
Infrastructure Sharing, diesel refuelling.
Africa, Tanzania, Malawi,
Airtel, Vodacom, Zantel, NEWL services extend beyond passive
Millicom-Tigo, NSN, Helios infrastructure to include the radio network - our
Towers Africa, NEWL
Peter Kiloli and Ray O’Shea, NEWL engineers have experience with multiple vendors’
equipment, we conduct network planning and
NEWL (Northern Engineering Works Ltd) is the leading managed services company in Tanzania,
optimisation through benchmarking drive
managing O&M for passive and active infrastructure at 2,100 tower sites in Tanzania across three
tests, we’ve deployed in-building solutions and
leading mobile operators. NEWL also has an operation in Malawi where they maintain 285 sites,
network quality analyses. We have experience
half of the Malawi Airtel network, on behalf of NSN. NEWL’s regional expansion plans are now at an of preventative and corrective maintenance,
advanced stage, as well as plans to further extend their service portfolio with an objective of offering on passive, active and field maintenance on
end-to-end services including site design, build, installation, commissioning and maintenance. transmission equipment. We’ve deployed just about
every type of site from GSM and CDMA BTS to
Read this article to learn: microwave hops, MSC and BSCs.
< NEWL’s credentials proven by managing over 2,000 sites in Tanzania and Malawi
< How NEWL modify hybrid energy solutions to meet local requirements in Tanzania NEWL has also undertaken many commercial grid
< The progress of, and pent-up demand for, LTE in Tanzania installations for Airtel. We’ve deployed 70% of their
< A snapshot of the tower market in Malawi grid-connected sites in Tanzania, deploying both HT
(high tension) and LT powerline installations.

We manage equipment warehousing and logistics
in-house and maintain a fleet of trucks and cranes,
providing services to transport equipment to
remote regions of Tanzania and Malawi.
TowerXchange: What is NEWL’s footprint in

Africa?
Peter Kiloli, Business Development Manager, NEWL:

We’re managing over 2,000 sites for Vodacom,
Airtel and Zantel in Tanzania, that’s roughly half of
each of their networks, making NEWL the largest
maintenance contractor in Tanzania.
We’re also managing over 280 sites in Malawi for

Airtel Malawi, about half their network, on behalf
of NSN.
Our headquarters is based in Arusha, Tanzania,

but we have local offices in every major city. Our
Malawi head office is in Lilongwe and we have a
sub office in Mzuzu.
NEWL are in the process of registering a business has had a big impact on our business. We have good news. There has been substantial pressure to
in Kenya, with further plans for offices opening in been monitoring the progress of Helios Towers improve operator margins and to reduce opex costs.
Zambia, Rwanda and Uganda, cementing our focus Africa’s most recent transaction (in which HTA That has impacted us directly. The towerco model
on East and Central Africa. acquired 1,149 towers from Vodacom Tanzania). has the advantage of co-locations, concentrating
NEWL manage over 780 Vodacom sites at present, more tenants per site, making it easier to manage
TowerXchange: What has been the impact of so we are currently negotiating a new contract with operations. NEWL are developing innovative
Helios Towers Africa entering the Tanzania Helios Towers Tanzania (HTT) - we hope to continue operations models to deal with the towerco business
market, initially acquiring towers from Millicom serving those sites under HTT, and we’re working model.
/ Tigo, and now also from Vodacom? hard towards achieving that, and are keen to meet
the key stakeholders at the TowerXchange Meetup. TowerXchange: How does tower sharing enable
Peter Kiloli, Business Development Manager, NEWL: economies of scale?
The entry of Helios Towers Africa into Tanzania The entry of towercos into the Tanzanian market is

“ Where once we had dedicated teams
for each operator, and field engineers
spent a large proportion of their
time on the road, now our model is“
regional, with each local team looking
after a cluster of 20-25 towers for a
mix of operators
Ray O’Shea, Head of Projects & Strategy, NEWL: In

the five years I’ve been in Tanzania the structure
of our business has changed. Where once we
had dedicated teams for each operator, and field
engineers spent a large proportion of their time on
the road, now our model is regional, with each local
team looking after a cluster of 20-25 towers for a
mix of operators.
Competitive pressure and reducing ARPU means Ray O’Shea, Head of Projects & Strategy, NEWL: of Pickups, to maintain access infrastructure,
operators need to reduce opex, and we can Tanzania is a huge country, the size of France and including power, and active equipment. We manage
help them create efficiencies and cost savings. Germany combined, with a limited road network, security at some sites too. NEWL has strict SLAs
HTT’s shared towers leads to efficiencies for all so it’s important to unlock operational efficiencies. with KPIs with our clients, and must attend each
stakeholders, saving wear and tear and diesel Many of the cell sites follow the main road site within 1-3 hours, depending on level of that site.
consumption within our fleet, which is one of our backbone, but an increasing number of sites are
biggest costs. being built in populated areas that are not so well TowerXchange: Tell us about the energy
served by road network. solutions deployed at Tanzania’s cell sites.
TowerXchange: What are the logistical
challenges of rolling out new towers in NEWL’s local teams of technicians use our fleet Ray O’Shea, Head of Projects & Strategy, NEWL:
Tanzania? of 4x4’s, usually Land Cruisers or similar types The grid in Tanzania is currently not stable, and

“
been working with international companies on how Ray O’Shea, Head of Projects & Strategy, NEWL: In
to adapt their systems to Tanzania. the last 2-3 years there has been substantial bi-
lateral tower sharing even without towercos.
TowerXchange: What has been the impact of LTE
so far in Tanzania? Airtel are in the process of transferring their
We think there is huge pent-up Tanzanian towers to their local Africa Towers
demand for mobile broadband Peter Kiloli, Business Development Manager, NEWL: subsidiary. Tigo have been strong in cities and have
in Tanzania. Most of the callouts To date, LTE has been deployed mostly in big cities particularly targeted the youth market - students
we get are from mining areas

and other resource rich areas. If
LTE comes reaches such regions,
uptake will be huge
“ such as Dar es Salaam, Arusha and Mwanza. Smile
are targeting business users, and NEWL uses Smile
in our own office in Dar es Salaam. Smile planning
to launch in Arusha in October this year. NEWL
have been part of the LTE Vodacom trial team,
and universities. Vodacom have been in expansion
mode, building new sites aggressively. And of
course they recently sold their towers to HTT, who
will help with their network expansion. Zantel are
looking at similar options with their network.
providing drive test services.
TowerXchange: Please introduce us to the
Tanzania’s data network is serviced largely through telecom industry and to the tower market in
the National Fibre Backbone at present, and can Malawi.
at times can be quite poor. There were periods last be a bit restrictive due to the monopoly, so we’re
year when sites had 18 hours per day without grid eagerly awaiting LTE. We think there is huge pent- Peter Kiloli, Business Development Manager, NEWL:
power, even in the main cities. This has driven an up demand for mobile broadband in Tanzania. There are two leading operators in Malawi. Airtel
increasing interest in hybrid energy. Most of the callouts we get are from mining areas are market leaders, then you have TNM, the state-
and other resource rich areas. If LTE comes reaches owned operator (in whioch Vodacom have been
NEWL has particular expertise in the rollout of such regions, uptake will be huge. rumoured to be interested in purchasing a share),
hybrid and solar systems. These hybrid systems and a couple of operators so small that they don’t
are being shipped in from all over the world, but TowerXchange: Tanzania is a very regionalised even outsource O&M.
often without any local expertise to modify them market - will infrastructure sharing transform
to the specific requirements of different locations the regionalised structure of the market? We recently met the Malawi Communications
in Tanzania. For example, we’ve often found that Director General at an ICT Summut, and he
alarms and reporting systems require configuration Peter Kiloli, Business Development Manager, NEWL: confirmed that there were no major changes
so as not to cause confusion and ultimately prevent Tanzania is indeed a very regionalised market - expected in the Malawi telecom tower market apart
hybrid from delivering the expected efficiencies. each operator has more subscribers in a particular from the registration of Airtel’s Africa Towers.
region, and seemed not to have immediate plans to
NEWL have built up a team of technicians with expand aggressively into other regions, although Ray O’Shea, Head of Projects & Strategy, NEWL:
solar and hybrid solutions expertise, who can get Vodacom and Airtel have a presence across all Airtel Malawi dominate with 80-85% market share.
to grips with these systems very quickly, and we’ve regions. There are around 500 towers in total in Malawi,

and even though the the country is challenged
economically, the number of mobile subscribers is
growing substantially.
TowerXchange: Finally, how do NEWL

differentiate your company from other managed
service providers?
Peter Kiloli, Business Development Manager, NEWL:

Over the last five years NEWL has differentiated
ourselves through our efficient operational model,
which makes us very attractive to operators and to
services providers like NSN.
As we see the transition of towers from operator-

captive to independent towercos, we see an
opportunity to manage more sites, to create more
efficiencies through our cost saving models, and this
will allow us to pass on more value to the customer.
NEWL is a one stop shop for managed services - we

don’t subcontract - we cover the whole supply chain
NEWL MD Samwel S. Lema received the International Arch of Europe Award
from leasing, permitting, installation, O&M all the
way to warehousing and logistics. engineering skills by formalising our relationship Five years ago there were probably 25
with local technical colleges, giving them guidance subcontractors competing in Tanzania, but pressure
For quick rollouts, NEWL is the partner of choice. on courses and taking in interns and trainees. on prices has whittled that down to four large,
Those colleges are now better connected to what the strong players, of which NEWL is the market leader,
Ray O’Shea, Head of Projects & Strategy, NEWL: industry wants, and they’re turning out mechanical, plus five or size smaller players.
NEWL is a private company and the management telecommunications and electrical engineers and
team get full support of our principal, which means technicians at with a high level of skills. Managing towers in Tanzania is like a military
we’re able to make quick decisions. operation with a 24-hour system. We learn from
We are serious about H&S and about investing the last 24 hours and focus on the next 24 hours.
We have a strong mix of locals and international on in new technologies and management systems, Success comes from structuring our business and
the management team, supported by local engineers for example we have recently completed the our NOC to manage the little crises that are going on
and technicians and we continue to develop local installation of a tracking system in our fleet. all the time

Special Feature:
Towerco
perspectives - the
“Frontiersmen”
In this latest installment of ‘Towerco perspectives’,
TowerXchange introduces readers to two of the new, niche
towercos focusing on smaller markets that can fall ‘below
the radar’ of the Big Four.
We introduce you to Laurent Roineau, General Manager

at Towerco of Madagascar, formed in late 2011 after a sale
and leaseback deal with TELMA. Learn how this startup
towerco adapted to the challenging tropical climate in
Madagascar, and how growth is being fuelled by BTS and
broadband transmission projects for PICOM, funded by the
World Bank. We also speak to Chris Lundh, COO of Frontier
Tower Solutions, whose experience managing towers in
conflict zones in Afghanistan and Iraq gives them a unique
appetite for managing towers in high risk markets.
Finally we talk to one of the original pioneers on the

frontiers of the African tower industry, Keith Boyd, who
has been running African towercos since 2002. These days,
Keith heads up Eaton’s organic market entry strategy in
South Africa, and he shares some interesting views on the
potential future of MTN, Vodacom and Telkom’s shareable
structures in SA.
Don’t miss:
54 Case study: TowerCo of Madagascar
59 FTS on how to manage towers in high risk markets
64 The future of South Africa’s telecom towers

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Case study: the launch and TowerXchange: Please tell us about the evolution
of TowerCo of Madagascar.
expansion of TowerCo of Madagascar Laurent Roineau, General Manager, TowerCo of

Madagascar: TowerCo of Madagascar is financed by
Selling urban co-locations and building sites with five days of autonomy in two major private equity shareholders. We setup
deep rural locations battered by tropical cyclones the company processes, and led the recruitment
of most of our 30 employees. We acquired 50 sites
Laurent Roineau joined incumbent fixed line operator in late 2011 via a sale and leaseback transaction
TELMA as CTO shortly after privatisation at the end of 2006, with incumbent operator TELMA. Transferring
launching Madagascar’s third mobile network, rolling out the towers to an independent towerco created the
250 GSM sites and upgrading others wireless transmission opportunity to develop co-location services for a
technologies (satellite and microwave). Laurent subsequently portfolio of mostly urban towers, with the potential
became deputy CEO at Electricity of Madagascar, where he to achieve high tenancy ratios.
re-organised the maintenance of passive infrastructure, before
So TowerCo of Madagascar was not a green field
becoming General Manager of TowerCo of Madagascar in
operation, but we subsequently have ongoing
November 2011.
exploitation and build-to-suit activities to setup new
sites for TELMA and have nationwide co-location
Keywords: Who’s Who, TowerXchange Meetup Preview,
Towercos, Sale & Leaseback, 3G, Capex, Opex Reduction, Batteries, contracts with Airtel, Orange, Gulfsat and several
Urban vs Rural, Network Rollout, Build-to-suit, Business Model, broadcasters to develop usage of the portfolio.
Off-grid, Solar, Wind, Logistics, Private Equity, C-level Perspective,
RMS, Infrastructure Sharing, Africa, Madagascar, Africa Towers, We rolled an out 50 additional sites in 2012, taking
Airtel, Orange, TELMA, PICOM, World Bank, TowerCo of our current tower count to 100 at the end of 2012,
Madagascar and in the next 18 months will rollout over 100
more sites. Those additional towers consist of an
Read this article to learn: order for 32 additional build-to-suit sites for one
operator, as well as two projects in which TowerCo
< What capabilities are managed in-house and what is outsourced by a new towerco
of Madagascar is working in consortiums for
< The impact of the political and related economical crisis on 3G broadband deployment in Madagascar
PICOM with World Bank funding; one to build 21
< Why renewable energy solutions have been deployed using a capex rather than opex model
sites in the southeast of the country, and another
< How TowerCo of Madagascar monitors and maximises cell site autonomy to ensure continued
to build, operate and own broadband transmission
availability during the tropical rainy season
infrastructure between Tulear and Mahajanga, for
< The role of TowerCo of Madagascar in a consortium funded by the World Bank to extend rural access
traffic collection and potential connection with two
and transmission infrastructure
submarine cable landings.

Madagascar market overview Operator sites inventory in 2013
400
Airtel
29% 300 Orange Madagascar
Airtel
40% TELMA Mobile
TELMA
TowerCo of Madagascar
Orange
200
31%
100
Population: 22m
Mobile penetration: 29%
Electrification: 5% of rural population have access to
electricity
Source: GSMA Operator sites inventory in 2013 Source: TowerCo of Madagascar
TowerXchange: What are the core capabilities and opex. While 97% of the initial 50 sites we TowerXchange: It sounds like TowerCo of
managed in-house by TowerCo of Madagascar, acquired from TELMA were connected to the grid, Madagascar almost has two business models - an
and what is outsourced? many of our new build-to-suit sites, including those urban business with a relatively conventional
funded by the World Bank, are in isolated rural tenancy leasing business model, and a rural
Laurent Roineau, General Manager, TowerCo areas where we’ve deployed solar and some wind business extending coverage and transmission.
of Madagascar: We have three core activities; power with a longer term payback, and agreed a How does the management of those portfolios
the promotion and sale of capacity on our different fee structure with the operators. differ?
infrastructure sites, the rollout of new build-to-suit
sites, and the quality monitoring and optimisation While TowerCo of Madagascar uses in-house project Laurent Roineau, General Manager, TowerCo
of power consumption. We also have support managers to oversee the acceptance of sites, site of Madagascar: We have three distinct strategic
functions in finance and in legal, for customers and deployment is 100% subcontracted. We think it’s approaches - one for urban towers, one for rural
suppliers. important to ensure a high level of externalisation build-to-suit sites and a third for the sites we’re
of non-core activities, but if an activity is not done building as part of the consortium funded by the
The breakdown of capex for a new site is typically correctly by a subcontractor, we internalise it. World Bank.
60% infrastructure, 40% energy. TowerCo of Exploitation is 95% externalised with KPI close
Madagascar are pushing a power saving approach monitoring - TowerCo of Madagascar maintain a Our urban strategy is affected by the current
with our operator partners, enabling us to offer procurement and performance management role to political crisis in Madagascar, which has meant
lower cost lease rates and reduce our own capex ensure best in class service delivery. investment in 3G broadband has mostly been

capex. We have internal framing protection rules
and are cautious to protect the confidentiality of our
customers.
Whenever we setup a site with a real co-location

opportunity, the initial structural design has
capacity for the equipment of two operators, but the
energy systems are adapted to the requirements of
just the first tenant, typically with a small margin of
+20% to ensure flexible “time to market” capacity
expansion for the tenant.
Our third strategic approach helps us optimise the

deployment of public and World Bank funds. The
structural and energy capacity of sites built under
our World Bank contract are defined by a Public
Private Partnership agreement. The agency that
manages the project is called Projet d’Infrastructure
de Communication pour Madagascar (PICOM), and
we bid for the infrastructure part of a tender that
they issued as part of a consortium together with
construction company Camusat and Madagascar’s
three leading operators, Orange, Airtel and TELMA.
delayed. For now we are largely meeting our When managing our rural build-to-suit programme, With the three operators engaged, we are able to
clients’ needs using our existing infrastructure it’s important to only setup new sites where there is anticipate the needs of those operators and avoid
- less than 5% of our new site rollout is in urban full potential for co-location. We never setup a site building sites that might remain unused, and we’re
areas. However, with the international community when there is any concurrence in location. If one of able to consolidate revenue generated from these
pushing for elections before the end of this year, our client operators requires a site at a certain grid rural and deep sites to get the right equilibrium of
this may unfreeze economic development and reference, if there’s an existing site between 200m capex, opex and lease rate pricing.
broadband requirements. With the expertise and 3000m from that proposed new site, then the
TowerCo of Madagascar has developed in co- existing site is raised to the customer as having the TowerXchange: How do you select and finance
location sales, multiple technologies and the potential to accept their tenancy. energy solutions for off-grid sites?
optimisation of site infrastructure utilisation and
power usage, we’ll be well placed to catch wave of It is a delicate balance to encourage co-operation Laurent Roineau, General Manager, TowerCo of
new site requirements for 3G. and tower sharing between operators to optimise Madagascar: So far we’ve used a capex model for

the rollout of energy solutions, rather than using
an opex or ESCO model. We are trying to optimise TowerCo of Madagascar expansion plan
procurement, managing an integrated “home made”
400
scheme but mixing suppliers to achieve the best
solution technically and economically. Our batteries
come from Europe, our regulation systems come 300
from electric power equipment suppliers, and our
PV usually comes from an efficient and reliable Sites
supplier in Asia, and it’s all 100% fully certified in 200
Contracts
terms of IEC requirements.
The reason we’ve used a conventional capex 100

model for energy is because the current economic
situation in Madagascar means local financing is
“
Start of 2012 End of 2012 End of 2013 End of 2014
not easy to find and is expensive, so leased solutions As the fourth largest island in the world with a
for energy will incur substantial financing costs. tropical climate on the coastlines, Madagascar is
typically hit by one to three cyclones per year. As
Madagascar is typically hit by one We monitor each solution to measure the return on a result, for sites within 60-80km of the shore, we
to three cyclones per year. As a capex capital deployed and to optimise opex - when have specific rules to build heavy-duty, strong civil
you put heavy capex into solar, usually the opex works, steel structures and solar arrays to ensure
result, for sites within 60-80km of
is low. Maintenance is 100% subcontracted, with availability and security. We install a big bank of
the shore, we have specific rules different fee schedules depending on distance to the backup batteries to ensure at least five days of site
to build heavy-duty, strong civil site. autonomy.
works, steel structures and solar
arrays to ensure availability and
security. We install a big bank of“
backup batteries to ensure at least
five days of site autonomy
TowerXchange: How does the tropical climate in
Madagascar affect your operations?
Laurent Roineau, General Manager, TowerCo of

Madagascar: The climate presents significant
logistical challenges in Madagascar. During the
It’s important to have efficient site monitoring
of diesel tanks, battery capacity, battery storage,
power usage et cetera. We maintain a central server
to monitor and calculate the autonomy of each
site each day, and we monitor weather forecasts
to anticipate heavy rain periods so we can boost
rainy season, it can take five days to reach deep battery capacity in advance, and manage potential
rural sites, as roads are of poor quality and predictive refueling on genset equipped sites.
degrading further.

TowerXchange: Does TowerCo of Madagascar
have any international ambitions?

Madagascar: Yes my shareholders wants to go into
other operations. We’re evaluating opportunities
and are open-minded.
TowerXchange: Finally, how would you sum up

TowerCo of Madagascar’s value proposition?

Madagascar: We are proud of the quality of our co-
location services to our customers. We are able to
undertake deep analyses of customer requirements
and advise on optimisation. If an operator wants
1000W of capacity and I can show how he can use
just 800W, it might mean less lease revenue for my
business, but it also means less opex and enables us
to secure a trusted relationship with that operator.
We operate a lean tower company, keeping a

good ratio of services delivered to the number of
employees. As a Frenchman, I have to conclude
with an “Asterix druid” reference - TowerCo of
Madagascar tries to be a magical potion to ensure
reliability and strong customer relationships.
TowerXchange: Has Airtel starting up their own Airtel’s rollout at the moment, rather than pushing
towerco had much effect yet in Madagascar? the promotion of other services. We will work Laurent Roineau will be presenting a case study
constrictively with Madagascar Towers - each time on the launch and future strategies of TowerCo of
Laurent Roineau, General Manager, TowerCo of Madagascar Towers is rolling out where we plan to Madagascar at the TowerXchange Meetup, taking
Madagascar: Airtel has launched Madagascar install our infrastructure, we have a discussion to place on October 1 and 2 in Johannesburg. For full
Towers here, and they seem to be operational. match operating requirements and to finalise which details of the event, visit:
They seem to be concentrating on supporting towerco will set up the infrastructure. www.towerxchange.com/meetups/africa

How to manage towers in
TowerXchange: First, please introduce us to
yourself. What’s your personal background in
emerging market telecoms Chris?
high risk markets Chris Lundh, COO, FTS: I have over twenty years
Frontier Tower Solutions have built and manage over 1,200 towers in Afghanistan and of experience working with high profile MNOs and
Iraq - and are now focused on deals in East Africa and the Americas ISPs in Africa and South America, starting in the
Democratic Republic of Congo as Managing Director
of Telecel, then the first mobile network operator
Keywords: Who’s Who, Meetup
in Africa. I also held Managing Director or CEO
Preview, Towercos, Investment,
roles with Africa Online in Kenya and Tanzania,
Build-to-Suit, New Market
Rwandatel in Rwanda, and with Nuevatel in Bolivia.
Entrant, Country Risk, Conflict
Prior to working with FTS, I most recently spent two
Zone, Sale & Leaseback, C-level
years in Afghanistan as Deputy Managing Director
Perspective, Infrastructure
with Afghan Wireless.
Sharing, Africa, Americas (South),
Middle East, Burundi, Suriname,
French Guyana, Guyana, Bolivia,
Frontier Tower Solutions (FTS).
Afghan Wireless, Frontier Tower
Solutions
Chris Lundh, COO, FTS Chris Lundh, COO, FTS: FTS is a leading owner,
operator, and developer of broadcast and cell sites
Frontier Tower Solutions are appropriately named. Over the last year CEO Montgomery Simus and COO in emerging high-growth markets in the Middle
Chris Lundh have built a towerco with a unique appetite for acquiring, building and operating towers in East, North and East Africa, Central Asia, South
frontier markets: they have experience in Afghanistan and Iraq, two of the toughest parts of the world, America and the Caribbean.
and they are closing in on opportunities in Africa and South America. FTS focus on tower markets that are
largely off the radar screen for other towercos, either because they are believed to be too small, or because While FTS is a young company, operating as an
the market is considered too risky. TowerXchange met Chris Lundh on his way out to Nairobi. independent entity for just over one year now,
we grew out of our own experience building,
Read this article to learn: operating, and maintaining more than 900 towers
< FTS’s proven credentials managing 1,200 towers in high risk markets in Afghanistan for more than a decade for our
< The ownership of and investment opportunities in FTS MNO “sister” company, Afghan Wireless. We are
< How FTS maintain neutrality in conflict zones proven in Afghanistan and in Iraq, and have taken
< Partnering with local communities for on-site security our experience as an operator and leveraged our
< Current opportunities FTS are exploring in Burundi, Suriname, French Guyana, Guyana and Bolivia 160+ dedicated network rollout personnel and
strong supplier relationships to explore projects

worldwide. As our name suggests, we are very Because of FTS’ “frontier market” focus, we’ve
comfortable building and managing towers in also attracted interest from certain types of
austere locations. That is our core expertise so we international, development and institutional
are looking to operate in some of the most under- investors whose mandates include very dynamic,
served and challenging regions of the world, emerging markets. For example South Sudan is a
engaging in active and passive infrastructure key priority for OPIC funding (“Overseas Private
outsourcing (tower sale and leaseback), structural Investment Corporation”, the US government’s
engineering, network design, transmission and RF development finance institution) so, if we were to
planning, and site development / build out activities proceed with a project in that market, we would
for mobile network operators. definitely explore this type of potential access to US
government financing and a degree of political risk
Our main focus thus far has been structuring cover.
tower sale and leaseback opportunities, with
colocation agreements in place pending final tower Our CEO Montgomery Simus handles the financial
acquisition, in East Africa and Bolivia (the anchor side of the business. Monty is a Yale and Harvard
market for our South American “cluster’), and we graduate with more than two decades of experience
are now in the process of finalising investor interest with leading technology, telecommunications,
in these projects. FTS is also soon to open regional financial services, and energy corporations, and
client support and technical service centers in he has experience in building and obtaining
Nairobi, Kenya and La Paz, Bolivia. finance for technology/telecommunications start-
ups, holding accountability for P&L management,
TowerXchange: What is the ownership of FTS? and developing and deploying technology-related
services for new emerging markets worldwide. He
Chris Lundh, COO, FTS: FTS is U.S. corporation has spent significant time with various MNO and
wholly owned by an American ownership group broadband service provider initiatives through our
with MNO operator experience. Because of the “sister” organisation in Afghanistan and also lived
smaller numbers of towers in transactions we in Kenya earlier in his professional career.
typically bid for, we’re still self-funded, but we are
Yakatoot, AWCC’s facility on the outskirts of Kabul
presently in discussions with investors regarding TowerXchange: How are the operational norms
several specific project finance opportunities and of building and managing towers affected when neighboring villages or the area to assist in
have also been approached by others looking to you’re operating in high risk markets, such as the physical construction of sites and towers.
invest at the overall FTS holding group level. We conflict regions? Additionally, we prefer to use in many cases the
are happy to explore either but, initially, have been same local people as the backbone of our on-site
setting the projects up as market-specific investment Chris Lundh, COO, FTS: We rely on local knowledge security. This generally provides better results than
opportunities. and expertise and try to use people from the high walls and razor wire!

We’re used to political risk - we eat this stuff for
breakfast! There aren’t many environments in
which it’s more challenging to manage towers than
Afghanistan. For example, we lost 25 towers in
Afghanistan to the Taliban last year.
TowerXchange: So how does it work in practice,

for example do you need a military escort when
installing or maintaining towers in conflict
regions?
Chris Lundh, COO, FTS: No. In some ways a military

escort is exactly what you don’t want when building
and maintaining towers in conflict zones. It’s
important to be neutral and focus on our mission
which is Connecting Communities, Building
Markets. Ultimately it’s in everyone’s interests to
extend communications, and we want to foster that
sense of community partnership in the markets in
which we operate. We have our own people and
“ There aren’t many environments

in which it’s more challenging to
manage towers than Afghanistan.
For example, we lost 25 towers
in Afghanistan to the Taliban last
year
“ selected partners who we send into the field of
course, but we’ll never take a chance with the lives
of our employees or contractors.
Political risk is another challenge. We think a

strong, transparent government can be helpful if
TowerXchange: Tell us about the opportunity
FTS are working on in East Africa.
Chris Lundh, COO, FTS: We’re presently focused on

opportunities in Burundi and in South Sudan.
they have a will to attract international investment We got to know the Aga Khan Foundation through
in infrastructure. But you don’t want a government their work with universities, hospitals and clinics in
to be so strong that there is a risk that they could Afghanistan. Through East Africa Telecom, the Aga
simply seize assets. Khan Foundation is starting up new mobile network

“ We’re exploring an opportunity
to acquire 43 towers, and
operate a build-to-suit
programme, with Lacell, East
Africa Telecom’s subsidiary in
“
Burundi
operators in Tanzania, Uganda and Burundi.
We’re exploring an opportunity to acquire 43

towers, and operate a build-to-suit programme,
with Lacell, East Africa Telecom’s subsidiary in
Burundi. There are five active licensed operators in
Burundi, although none has more than 180 towers.
3G has been rolled out by Econet and by U-Com / the challenges of logistics, security, and distance Chris Lundh, COO, FTS: Outside of the very
Leo, the old Telecel business that was recently sold remind us of some of things we had to overcome in large markets such as Brazil, Colombia, Chile,
by Vimpelcom to Niel Telecom. There’s also Africell, Afghanistan. and Argentina, we have believe that there are a
Onatel and Lacell. number of compelling tower opportunities in South
We are currently establishing partner relationships America, and strong potential for upside when
We think there are more pros than cons about the with local specialists in specialists in building and towers are migrated from operator-captive to third
Burundi market, including real tourist potential. maintaining tower infrastructure in Africa, and party towercos.
also developing energy partnerships for diesel
We are exploring a similar sized opportunity in generators and hybrid equipment. We’ve been examining opportunities in markets
South Sudan, a very low-density market. There such as Suriname, French Guyana and Guyana -
is limited geographical coverage in South Sudan TowerXchange: What can you tell us about FTS’ three adjacent but very different markets - as well
- the tower count is in the low hundreds - and interest in Latin America? as Bolivia. Populations in the former countries are

“ Our niche/expertise is smaller,
“frontier” or very dynamic post-
conflict markets that may not
normally appeal to bigger tower
companies, or markets with tower
portfolios too small to be worth
“
larger towerco’s due diligence to
acquire
“steel, rigging & power” mentality.
Our business model - true to our name - is focused

around building “clusters” of infrastructure in
challenging but high-growth markets in two
expanding primary locations: East Africa and South
America.
Unexploded RPG round wired to base strut of a tower
concentrated along a coastal strip, where there is tower companies, or markets with tower portfolios FTS does not harbor ambitions to take on global
grid power, but inland most sites are off-grid. High too small to be worth larger towerco’s due diligence passive infrastructure sale and leaseback operators
towers are required to overlook the jungle. to acquire. in developed or mature markets; rather, we prefer
to work with MNOs who share our understanding
TowerXchange: Finally, please sum up what role Having grown out of a GSM operator’s background, of the challenges and potential presented by such
you see FTS playing in the emerging market FTS acutely understands what it takes to build, relatively young, dynamic and “frontier” markets.
tower industry compared to other towercos? maintain, fuel, and service large numbers of towers
in austere environments. We bring a MNO mindset Frontier Tower Solutions will be hosting a round
Chris Lundh, COO, FTS: Our niche/expertise is first, keeping our operational experience as a large table on “How to manage towers in high risk
smaller, “frontier” or very dynamic post-conflict scale MNO as the main criterion for successful markets” at the TowerXchange Meetup. Visit:
markets that may not normally appeal to bigger service delivery to our customers versus that of a www.towerxchange.com/meetups/africa

The future of
TowerXchange: Thanks for speaking to us today
Keith and for hosting the South African market
round table at the TowerXchange Meetup. Please
South Africa’s telecom towers introduce our readers to the South African
market.
Eaton Towers’ organic growth success story in South Africa hints at the long
Keith Boyd, Managing Director, Eaton Towers
runway of growth in less mature SSA tower markets South Africa: In South Africa, latest figures seem to
Keith Boyd is a 13-year veteran of the African tower industry show that Vodacom has around 45% market share,
having served first as a Director at Plessey then as CEO of MTN 37%, Cell C is up to 16%, and Telkom Mobile
Venture Communications, later acquired by DPI and merged (formerly 8ta) has 1-2%. Vodacom and MTN are
with Eaton Towers. Keith is now Managing Director of Eaton’s very successful, cash rich operators. Telkom Mobile
business in South Africa, and he’s kindly agreed to host the would appear to have a difficult road ahead, but
South African market round table at the TowerXchange they have options as the mobile arm of the fixed
Meetup, taking place on October 1 and 2 in Johannesburg. By line operator Telkom. Cell C are within reach of
way of a preview of that round table, TowerXchange caught up becoming a sustainable, self-funding operator.
with Keith to ask his views on the South African tower market.
Cell C, which recently benefitted from a US$350m
injection of equity from parent company Oger
Keywords: TowerXchange Meetup Preview, Towercos, 4G,
Capex, Deal Structure, Opex Reduction, Tenancy Ratios, Telecom, are pushing for asymmetrical call
Market Forecasts, Business Model, Densification, Leasing termination rates, or to have call termination
& Permitting, Regulation, Rooftops, Organic Market Entry, rates dropped from their current level of R0.56
Infrastructure Sharing, Africa, South Africa, Vodacom, MTN, (about 6 US cents) to nearer to 2 US cents. It
Cell C, Telkom, Internet Solutions, Neotel, American Tower, will be interesting to see how the Independent
Eaton Towers Communications Authority of South Africa (ICASA)
Keith Boyd, MD, Eaton Towers Africa
views their request given the recent pricing
Read this article to learn: competition from newer entrants Cell C and Telkom
Mobile.
< Insights into the market share and tower strategies of South Africa’s four leading operators
< Quantifying the potential growth of the African tower market; forecasting a trebling of PoS in
About half of each of MTN and Vodacom’s
10 years
subscribers are ‘data active’, and data usage is
< Why Eaton Towers’ organic market entry strategy is working
nearly trebling annually, increasing 193% last year
< Thoughts on the potential future of MTN, Vodacom and Telkom’s shareable structures
according to MTN, driven by data bundle price
< The implications of South African operators’ proven appetite for independent towers for less
reductions, and the uptake of smart phones.
mature markets in SSA

“
TowerXchange: Would you characterise South
Market share, South Africa Africa as a mature telecoms market?
Vodafone
MTN
Cell C
Keith Boyd, Managing Director, Eaton Towers South
Africa: Whereas SIM penetration in most of Sub-
Saharan Africa (SSA) is around 50-85%, there are
70m subscribers in South Africa, representing 115%
SIM penetration. Dual-simming is not as common
as elsewhere in SSA, but anecdotally I do see an
a 3:1 growth ratio suggested an
opportunity to secure 1.6-1.7
tenants per tower relatively
quickly
“
Telkom Mobile increasing number of people with more than one
mobile device, whether it be a dongle for their
laptop, a tablet or a business and personal phone.
The context of tower rollouts and for infrastructure sharing to avoid spending capital
rumoured M&A activity in South Africa When Eaton Towers first started looking at South on ‘poles and holes’, a 3:1 growth ratio suggested
Africa, we wondered if the market had matured an opportunity to secure 1.6-1.7 tenants per tower
Cell C are rolling out aggressively and currently beyond the point at which a towerco would relatively quickly.
have around 4,000 sites in South Africa. Speculation have a significant opportunity for growth. So we
continues about potential M&A activity, either the commissioned two independent consulting firms TowerXchange: So how has Eaton Towers’ South
consolidation of Cell C and Telkom Mobile, or the to prepare a report on the future expected demand African business evolved since your initial
potential market entry of Airtel through acquisition. for towers, and PoS (Points of Service). The levels market studies?
of growth in demand for PoS they forecasted were
In the tower market, American Tower acquired surprisingly high. Both reports - although utilizing Keith Boyd, Managing Director, Eaton Towers South
1,400 sites from Cell C in 2010, in a deal structured slightly different approaches - came to a similar Africa: We realised we couldn’t control the timing
to release cash. American Tower is currently conclusion, while our own conversations with key of when South Africa’s existing operators sold their
marketing 1,629 sites in South Africa, of which just market stakeholders painted a similar picture. towers, but we could control an organic market
over 1,000 are greenfield sites. entry by building our own towers, which is what we
When we conducted these studies in the second half decided to do at the end of 2011.
Recent press speculation seems to indicate that MTN
of 2011, there were just under 15,000 greenfield
South Africa are in the later stages of agreeing a
towers in South Africa, with 25,000 PoS in total We spent 2012 acquiring, permitting and developing
tower deal with American Tower. MTN has already
including the towers plus DAS, rooftops, lamp posts sites, signing up operator contracts and tenancy
established partnerships with American Tower in
et cetera. That was forecast to treble to just under agreements, and have an expansion plan through
Uganda and Ghana, in both cases MTN retained
75,000 PoS in 9-10 years, with the bulk of the growth 2013-17. Demand has been higher than we
49% equity in the local towerco. MTN are estimated
in the next 5-6 years. We knew if we could capture expected, and the average number of tenants on
to have over 3,500 towers in South Africa, with a
just 10% of the market growth, that would be a good Eaton’s towers in South Africa are higher than in
presence on another 2,000 sites.
business to have. With an increasing preference our original assumptions and business plan. Now

it’s simply an issue of getting to scale in the next
year and more.
To date, we’ve acquired approximately 400 sites,

and fully permitted more than half of those.
Permitting can take 9-18 months in South Africa, so
you can’t build 1,000+ towers overnight. We have
already completed construction on over 80 of these
sites (August 2013), and are constantly adding more
sites as per increasing customer demand.
The simple reality of our business is that, at the
pricing levels we charge, any tower with one tenant
is a liability - or at best, a very poor investment.
Towers with two tenants are an asset. Fortunately,
Eaton has signed up more than two tenants per
tower on average already in South Africa.
When we market a site to an operator, it’s already

Cape Town, South Africa
fully permitted, and we have a framework
agreement in place, so both parties know the price. new site in 30 days. We break ground as soon as we an existing tower, where people live in the shadow
All they have to do is sign an ISA (Individual Site have a single anchor tenant signed up, and we’re of the site. The truth is that it is not that simple for
Agreement), and we can have them installed on a able to react quickly to operator demand - in fact network planners at operators to be able to predict
“
the passive infrastructure can often be ready faster accurately more than a year ahead in terms of
than the time taken to get the transmission links in their network densification requirements, and the
place and to get the active equipment installed. acquisition and permitting work can take several
months, so towercos offer significantly reduced
Eaton has signed up more

than two tenants per tower on
average already in South Africa
“ TowerXchange: How does running an organic
growth towerco differ from a business model
built on a sale and leaseback transaction?
Keith Boyd, Managing Director, Eaton Towers South

Africa: We have to make informed guesses where
time to market, by speculatively acquiring and
permitting sites.
Our formula isn’t complex. As soon as one tenant

needs a site, we build it. If we can add a second
tenant in under 2-3 years, we’ll be successful, so
coverage gaps in the networks will appear, as it’s a case of assessing each site to determine how
voice and data capacity demands grow. It can be as strongly we should market it.
simple as choosing sites more than 500-600m from

“
TowerXchange: What would be the impact on an immediate opex subsidy in the region of 25-40%,
your business of the rumoured transaction creating industry-leading low opex, thereby putting
between MTN and American Tower in South them in a great place to prevail in any future price
Africa? wars. Dropping opex from around ZAR9,000 per
month to ZAR6,000 simply cannot be done through
Keith Boyd, Managing Director, Eaton Towers South Vodacom specifically has an efficiency programmes, so the towerco counterparty
Africa: I expect to see American Tower make more excellent opportunity to... structure would have to agree an EBITDA-negative deal.
investments in South Africa. But I can’t comment a deal with a towerco to secure
on speculation linking them with another deal with an immediate opex subsidy in The only place that the guaranteed “opex subsidy”
MTN.
Quite frankly, I’m glad American Tower is operating

in South Africa as well as Eaton Towers - it makes
operators more familiar with the towerco business
model and price points. We’re not really in direct
the region of 25-40%, creating
putting them in a great place to

prevail in any future price wars
“
industry-leading low opex, thereby
comes from is the tower company’s shareholders,
through their income statement. Obviously, at some
point in the future, we would need to believe that
the tower portfolio becomes EBITDA positive - but
that is not something the operator would need to
worry about. Their greatly subsidised site opex
competition with American Tower - because would be fixed by the towerco. Eaton Towers is
uniquely located sites are exactly that - uniquely the only towerco that has done a deal on this basis
located. In our entire portfolio there are probably in Africa. Whilst our shareholders have a positive
two sites where our tower is within 500-600m of as all the others. That would be very poor for view on these types of transactions, I don’t see how
American Tower’s. As an organic build towerco, if competition reasons - and no towerco would want publicly listed towercos, that are currently quoted
we saw a new site go up where we had acquired to buy assets where they already have significant as trading at a multiple of their EBITDA, could bring
land and completed permitting, we probably numbers of “near neighbor” sites. their management and shareholders along to do
wouldn’t market the site, as the supply:demand ratio such a strongly EBITDA negative deal.
would be out. At Eaton, we are keen to expand and accelerate
our investments in South Africa. And I expect that Meanwhile state-owned fixed line operator Telkom
TowerXchange: How would you anticipate the our local commitment and presence, coupled with is estimated to have over 6,000 shareable structures
South African tower market evolving if MTN and our well funded position, in-market experience towers. It’s the largest ‘poles and holes’ network in
American Tower did get together? and customer base, would make Eaton Towers SSA. Telkom has a great opportunity to do a tower
an excellent counter-party for any future towers deal. It’s not about the Telkom Mobile rollout,
Keith Boyd, Managing Director, Eaton Towers South transactions in the country. they can do that using other infrastructure. It’s
Africa: It would be interesting to see how Vodacom an opportunity to become a carrier of carriers, to
and Telkom would react. Both have larger portfolios Vodacom specifically has an excellent opportunity release cash and drive down opex, securing a stake
of towers in South Africa, but there is overlap with to use their towers to drive their cost base as low in a towerco that would be a boost to the valuation
the MTN portfolio, so I doubt it would make sense as they can over the next 10 - 15 years and beyond. of their business. In order to do this, Telkom would
for them to deal their towers into the same vehicle They could structure a deal with a towerco to secure have to clarify the implications of the Facilities

then supplement their existing 3G networks with
LTE, or if they license new operators who are then
motivated to build as much LTE coverage as they
can in high demand areas, catalysing the data
market.
Although operators are already running some LTE

sites, there’s still a lot of ground to cover in South
Africa’s LTE story.
TowerXchange: Beyond the four leading mobile

network operators, are there any niche players
that are significant potential tenants on South
Durban, South Africa African towers?
Leasing Act, which forces “dominant” operators I’d describe bi-lateral swaps in South Africa as Keith Boyd, Managing Director, Eaton Towers South
to sell slots on their infrastructure on a “cost plus” significant but not strategic. Mobile networks have Africa: Internet Solutions and Neotel are two of the
basis, but whether Telkom can really be considered been functioning since 1994, so over the nineteen more interesting operators. And I expect that LTE
a dominant operator in the mobile-era, and the and a half years they’ve been operating towers, if licensing in future will see new entrants launch.
exact definition of “cost plus” should both be up for the lease up rate is still only 1.5, then you can see
debate. they haven’t given the same attention to adding Neotel is a non-mobile player targeting the SOHO
multiple tenants that an independent towerco (Small Office Home Office) segment and using
TowerXchange: Have there been a lot of bi- would have. WiMAX, WiFi and CDMA. They have a lot of rooftops
lateral tower swaps in South Africa? I recall the in their infrastructure. While they may not be
suggestion that one operator in South Africa TowerXchange: What impact will LTE have on completely self-funding yet, they have an interesting
had third party tenants sharing 50-60% of their the South African tower market? business model in not competing in the retail
towers. market but focusing on broadband for business
Keith Boyd, Managing Director, Eaton Towers and high end users. Their opportunity seems to be
Keith Boyd, Managing Director, Eaton Towers South South Africa: LTE could be a shot in the arm for the partly due to current data capacity issues in many
Africa: Historically there have been quite a few telecoms business, and ICASA is expected to issue areas of all the GSM operators. If the last year is
swaps of slots, but on a piecemeal basis. Bi-lateral licenses in the coming months, but we don’t know anything to go by, demand seems to be increasing
swaps are not customer service oriented, and the yet what their strategy will be. faster than the mobile operators can expand and
turnaround time between requesting and securing densify their networks - and I think Neotel are
a slot can be as long as 12 months. The impact on the market will depend whether capitalising well on this.
ICASA gives licenses to incumbent operators who

“
TowerXchange: For the benefit of our supplier Africa: I am pleasantly surprised that the South
readers, what capabilities does Eaton Towers African market has already offered significantly
South Africa have in-house, what do you better than expected growth for the tower sharing
subcontract? business. If you’d asked me in 2010, I would have
thought South Africa was a mature market, but now
Keith Boyd, Managing Director, Eaton Towers South we see a great opportunity for the tower industry if South Africa is not a
Africa: We retain project management oversight, here. mature market for the
quality, health and safety responsibilities, but we
subcontract site builds to full turnkey contractors.
Our field maintenance is outsourced, but we manage

service levels, call escalations and keep the NOC and
Data-wise, South Africa is the most developed
market in Africa. I recently met a consultant
who forecast data consumption would rise to an
average of 1GB of data being used per day per data
towerco business model,
then there is even more
room for growth elsewhere
in SSA
“
SLA management in-house. subscriber. I don’t know whether we’ll reach those
kind of numbers in my time, but that’s only an hour
With the exception of a few permitting activities, our of HD entertainment. We’ve all been guilty at times
property team is managed in-house and permits 15- of underestimating where technology can take us,
20 new sites per month. and if 1GB per subscriber per day were the future, last mile, or the last 400m as it is today, and to keep
that would represent a thousand times increase on up with transmission requirements.
TowerXchange: What’s the energy logistics state the data demand we have today. If active equipment
of play - how extensive and reliable is South becomes ten times as efficient, you still have a If operator Points of Service treble between 2011
Africa’s grid? hundred times capacity to make up, and it still and 2021 in South Africa, as our forecasts suggested,
presents a tremendous opportunity. operators will continue to escape the huge capital
Keith Boyd, Managing Director, Eaton Towers South requirement this generates by using independent
Africa: We have over 99.3% availability of grid That’s why there’s upside in the South African towerco sites. They’ll have to keep all their capex
power across our portfolio. Uptime is so high that we tower market, and if you consider the relative focused on active equipment. Eaton Towers has
haven’t got fixed generators on sites - we simply use data consumption in Eaton’s other tower markets, made a great start to our organically grown South
mobile gensets that we can dispatch to sites within Ghana, Uganda and Kenya, then you can see there African business, and we see plenty of room for
three hours of a grid failure, before the operators’ is still a lot of potential runway for towerco growth growth in the future. And, if South Africa is not a
batteries are depleted. So the focus on energy issues elsewhere in SSA as increasing data consumption mature market for the towerco business model,
in South Africa is lower than anywhere else in SSA. drives cell site densification. then there is even more room for growth elsewhere
TowerXchange: What are the implications of The insatiable demand for voice coverage that in SSA
Eaton Towers’ success in South Africa for the rest drove the initial land-grab network rollouts in
of the African tower market. Africa is going to be replaced with an insatiable Register today to join Keith Boyd’s South African
demand for data. Operators are going to need to market round table at the TowerXchange Meetup
Keith Boyd, Managing Director, Eaton Towers South accelerate project management again to densify the on October 1 and 2.

Special feature:
From RMS to monitoring

and management
platforms, part four
In part four of this special feature, TowerXchange introduces
readers to azeti, who have an interesting new platform
SiteOne, developed in partnership with managed services
giants Lemcon, which they use to add intelligence to BTS site
management.
Tarantula have an alternative platform to manage

information assets across the end to end workflow of a
towerco that evolved with the tower industry itself. If you’re
not familiar with Tarantula, or with their new Chairman
Udhay Mathialagan - veteran of Macquarie, Crown Castle
and founder of Insight Infrastructure, a greenfield towerco
which he sold to ATC - then I’m sure you’ll enjoy his insightful
interview in which he explains how harnessing information
is critical to optimising TCF.
Finally we check-in with M2M gurus HMS Industrial

Networks, whose Anybus embedded communication modules
enable communication between devices and networks across
the ever-increasing variety of protocols, and whose Netbiter
RMS ultimately enables the comparison and optimisation of
sites’ energy efficiency ratios.
Don’t miss:
71 azeti add intelligence to BTS site management
77 Tarantula use information management to measure
and maximise TCF
82 HMS: If you can’t measure it, you can’t manage it

Adding intelligence TowerXchange: Where do azeti fit into the
telecoms infrastructure ecosystem?
to BTS site management Thorsten Schaefer, CEO, azeti Networks: azeti

Networks AG is a global manufacturer and
Integrating monitoring and management, access control, maintenance, asset, supplier of high-performance, intelligent site
inventory and HR management in an end to end managed service management solutions. Founded in 2006, with
corporate headquarters in Berlin, azeti also
maintains subsidiaries in the UK, South America,
Site management experts azeti reckon there
the Asia-Pacific region and the Middle East.
are 8m telecom towers worldwide, of which Today, more than 1,000 companies in 35 countries
640,000 are dependent on generator power, rely on azeti technology to monitor both their IT
rising to 1m in the next two years. To serve and physical infrastructures.
this market, azeti has developed and deployed
together with azeti’s business partner Lemcon While we initially concentrated on industrial
product monitoring, we now concentrate on
Networks the cost efficient SiteOne solution for
telcos with special focus on BTS monitoring.
network management, based on azeti’s proven
SONARPLEX product line. azeti’s unified monitoring solutions are not
just limited to monitoring IT components (such
Keywords: Who’s Who, Managed Services, Access Control, as routers, switches, servers and software
Monitoring & Management, Opex Reduction, Batteries, Fuel
applications), but by supporting a wide range
Security, Air Conditioning, ESCOs, Site Visits, Asset Register,
of sensors and detectors, we can also monitor
RF-Units, Community Power, RMS, Site Management
and manage just about every sort of physical
System, Asset Lifecycle Platform, Job Ticketing, Spare Parts,
phenomenon imaginable: fuel levels and usage
Thorsten Schaefer, CEO, azeti Networks
azeti, Lemcon
rates, temperatures and pressures, voltage levels
and battery capacities, air quality and flooding,
Read this article to learn: gages and valves... plus cameras, motion sensors,
< How azeti’s intelligent site management capability is integrated with Lemcon’s NeXsysOne in the new access-control devices and so on. The possibilities
SiteOne solution are virtually endless.
< How to save 30%+ on the operating cost of HVAC Systems
< How predictive monitoring extends MTBF
Information collected from all remote locations
< Integrating with a zero capex energy service business model and working with the local community to
flows via communications networks into the
SiteOne console that, regardless of monitored
share power and improve site security
systems’ distance and location, acquires,

visualizes, controls and analyses every sort of
information client companies need to precisely
monitor and operate their most vital systems
and equipment. In addition, It also produces
management reports, analytics and historical
information data.
Because azeti makes use of standard sensors and

industrial bus interfaces, clients can depend on
an uninterrupted flow of information. And even
if there should be a communications network
failure, azeti’s appliances continue to run without
the central console, thus assuring a complete data
record.
I joined azeti in 2009 with a substantial round

of venture capital financing, with an objective
to internationalise the business, which had been
focused on Europe. By 2010 we had 60% of our
revenue coming from outside Europe.
azeti interface
TowerXchange: Please introduce our readers
to your business partners Lemcon Networks. focus on telecom projects. The company is part and the Finland based S-group. Lemcon has
of the Lemminkainen group from Finland which successfully delivered more than 200 projects
Thorsten Schaefer, CEO, azeti Networks: We has 9,000 employees and an annual turnover worldwide since 2000. Many of these projects are
conducted extensive research and identified of €2bn. Over the years, the company has been complete end-to-end turnkey delivery service
Lemcon Networks as a top star in the managed involved in telecom network deployment projects from site acquisition to final network operations.
services business for telcos. in over 40 countries across all continents. On-going projects include system integration
type services centralised around data capacity
Your site management system could be the best in Lemcon’s core experience comes from upgrading expansions, site management, mobile network
world, but if you don’t install, rollout and manage and expanding GSM, WiFi, WiMAX, UMTS or system integration, asset management, building
services in the right way with qualified people, LTE networks. Lemcon customers worldwide maintenance and managed services.
the project will not be a success. include or have included Globe Philippines,
Econet Zimbabwe, T-Mobile USA, Nokia Siemens It was perfect timing when we contacted Lemcon
Lemcon Networks Ltd. was established in 2000 to Networks, Ericsson, Huawei, Millicom, MTN, 20 months ago, as Lemcon had developed

software around managed services for BTS and lower the temperature in the shelter to 18 With our technology, up to 40-50 different
towers; software that combined monitoring and degrees for a maintenance visit, yet forget to measurements of temperature can be gathered,
management, staff and project management, reset the temperature when he leaves – that enabling us to identify the optimal sweet spot for
maintenance, repair and resale management. can cost a fortune in air conditioning power air conditioning, which should lead to at least
They were consolidating their managed services consumption. With SiteOne we can detect the 30% savings.
offering into a new suite – NeXsysOne, so azeti’s temperature, verify from the surveillance
SONARPLEX Product line became the site module that is integrated in SiteOne that the site Our reports require very low data traffic when
monitoring component thereof. access is complete, and reset the air conditioning everything is fine – there’s no need to transport
remotely. data about the temperature every minute, all that
Lemcon has established its Global Technical does is blow up the data traffic.
Support Center in Dubai (GTAC) that supports We can monitor for water intrusion into the fuel
activities directly linked to the professional tank, we can switch off the pump or generator Our solution is powered by an intelligent
NeXsysOne software suites. remotely... Any number of sensors and data Modbus, BlueTooth, Zigbee, WirelessLAN, GSM-
points can be deployed to SiteOne for control enabled box onsite, each with the processing
TowerXchange: What is the installed base of from the NOC. power of a computer but as big as two cigarette
SiteOne in emerging markets? boxes. There is no need for 10 boxes from
TowerXchange: How can intelligent site different vendors – more sensor devices only
Thorsten Schaefer, CEO, azeti Networks: azeti management be simplified? means more installation and maintenance
and Lemcon as mentioned have delivered hassles! Whether it’s a diesel generator, solar
successfully more than 1.000 installations Thorsten Schaefer, CEO, azeti Networks: Many panel array, deep cycle battery, or the monitoring
independently. Now with the unique combined site management processes can be automated of rectifiers, complex power scenarios can be
solution SiteOne we have successfully deployed using SiteOne. Local events can be handled managed from a simple device.
our first installations around the globe. The within our SONARPLEX appliance that can
solution will be implemented at 250 sites in automatically reset temperatures, water pumps, TowerXchange: What impact does intelligent
Q3/2013 and is shortlisted in projects with in total entrance gates, cameras or reboot IT and RF site management have on Mean Time Between
more than 100,000 sites. components. Failures (MTBF)?
TowerXchange: How does using SiteOne add For example, all we need to know to configure Thorsten Schaefer, CEO, azeti Networks: We
value to the management of remote cell sites, the air conditioning is the highest critical provide predictive monitoring for IP devices
particularly in emerging markets? temperature of every piece of equipment in logging file size, CPU usage, HDD status et cetera,
a shelter. We don’t need manual intervention while we can detect fuel refilling status and
Thorsten Schaefer, CEO, azeti Networks: We from the NOC, temperatures can be managed purification with water, and optimise battery
collect data from remote sites to the NOC, and automatically onsite. The only important input cycles and performance to extend battery life
enable tower operators to react. For example, is to know which asset will overheat and at what cycles.
an engineer may set the air conditioning to temperature.

“
Access control can be simplified with the Staff manner
Manager tool from Lemcon plus SiteOne. Only < TaskOne is a comprehensive task management
qualified engineers can open the gates using an solution that coordinates field activities with
and spare parts inventory means

“
Co-ordination with asset registers
spare parts can be delivered faster to

the site, further reducing MTBF
SMS code that works for six hours on a simple
electronic lock and PinPad or barcode read from
a smartphone – there’s no need for an expensive
intelligent lock, although we can use fingerprint
access control if the operator wants. We also
support a proof container/area with separate
those of the NOC
Let’s use an example scenario in which the RF-

Unit malfunctions. This generates an alert which
triggers an automated restart of the RF-Unit by
software command; and as we know it seems like
access control for the fuel tank. 90% of malfunctioning assets work if you just
switch them on and off!
TowerXchange: How can tower operators
Generator life cycles are extended by the many “close the loop” on maintenance alerts and Whilst we try to fix the problem intelligently and
ways in which intelligent site management can job ticketing to ensure priority actions are automatically on site, at same time we report the
reduce runtime, for example reducing fuel usage completed in a timely manner and recorded in problem to SiteOne at the NOC, which generates
by energy (AC) management, such as by using a asset registers? a job ticket and alert with historical data on
simple “maintenance” button. the asset. If the automated solution onsite still
Thorsten Schaefer, CEO, azeti Networks: SiteOne hasn’t fixed the problem, the alert goes into
Co-ordination with asset registers and spare parts includes a ticketing system which can be
inventory means spare parts can be delivered integrated with an existing job ticketing system.
faster to the site, further reducing MTBF. On top of this, Lemcon offers a whole range of
integrated applications to optimise maintenance
TowerXchange: How can tower operators of remote sites:
combat fuel theft?
< MaintainOne is a comprehensive preventive
Thorsten Schaefer, CEO, azeti Networks: The most and corrective maintenance management
common challenges we encounter working with system. This web-based application is a
tower operators involve fuel, batteries or copper one-stop solution for all your event and alarm
being stolen, or problems with access control and management needs
unqualified access. < AssetOne is the premier asset management
and inventory solution
With SiteOne, video surveillance is built into the < StaffOne is an advanced human resource
site and linked to alarms, with a camera that management software that allows you to
automatically locks the site if broken, and a ‘dead control and consolidate all your resource
man alert’ in case of tower falls. information in a streamlined and efficient

StaffOne to find the nearest engineer with the
right qualifications. That engineer is SMS’ed an
access code to open gate, together with a photo
of the RF-Unit, and notification that this is the
component in which we’ve detected an error.
Meanwhile TaskOne governs the change of RF-
Unit, and looks into AssetOne for stock of spare
RF-Units of the right type (or orders one if out
of stock), while also identifying who is the next
engineer free to take the spare part from the
store to the site. So there’s a seamless, end to end
process from the azeti SONARPLEX boxes on the
site to the dashboard at the NOC.
Typically our joint service is sold on a monthly

base.
TowerXchange: Can you extend your business

model into providing energy as a service?
Thorsten Schaefer, CEO, azeti Networks: We’re

azeti interface
finalising a new partnership with a company that
manufactures modular energy stations designed protect the site – it’s in their interest that the technology SONARPLEX and Lemcon’s SiteOne
to provide efficient power to telecommunications site is up and running. When locals can charge software offer a unique solution to:
base stations. The model will be based on a zero their phones using generators, if the gate is ever
capex model, where they generate revenue solely broken, local people can respond fastest. The < Monitor ANY old or new assets at a remote
from fuel savings. We have a contract to pre- model has been proven in the favelas in Brazil. sites from IP devices, plus sensors and
install azeti inside their generators to manage the cameras to control theft of fuel and assets
whole site and embed this in a managed service TowerXchange: Finally, please sum up how < Manage ALL intelligent devices (AC, batteries,
model. you differentiate SiteOne from competitive generator, cameras, entrance gates, et cetera)
remote monitoring and intelligent site directly at the site
In this model, the energy service company might management systems?
give the old generator to the community, which This significantly reduces energy consumption,
incentivises them to take care of the site. Security Thorsten Schaefer, CEO, azeti Networks: The theft, MTBF, and maintenance opex including
improves if you work with the community to combination of azeti’s intelligent remote truck rolls

Site Management - Made Intelligent
Using information
TowerXchange: Please introduce yourself to our
readers.
management to measure and Udhay Mathialagan, Chairman, Tarantula: Having

been involved in a variety of different roles in
maximise Tower Cash Flow developed and developing tower markets (Australia,
India and Russia) involved in multiple towerco
formats, from full blown asset purchases and carve
How to harness critical information across the end to end tower industry outs to green field builds, and most recently being a
workflow, from construction to monetisation and maintenance financial sponsor, I was ready for a new role.
Udhay Mathialagan tripped into the international tower industry almost 15 I became interested in niche companies offering
years ago, and for good reason he stayed! Having initially worked at Telstra differential value to the tower industry, and got
and KPN, Udhay was a founding member of Crown Castle’s Australian
connected with Ravi Kuppan, Founder of Tarantula.
business in 2000, playing an instrumental role in the acquisition of Singtel
I saw Tarantula becoming more and more relevant
Optus’s US$225m tower portfolio, before serving as Director Strategic
as towercos seek to establish themselves in new
Development and Commercial in Crown Castle’s management team. Udhay
developing markets, they have found the Tarantula
founded Insight Infrastructure in 2006, a green field regional towerco in
platform useful to help them expand quickly
India, and served as CEO until its sale to American Tower in late 2009.
and efficiently. So I recently joined Tarantula
Prior to joining Tarantula as Chairman a month ago, Udhay was a Senior
as Chairman to partner with Ravi to build out a
Communications Industry Advisor to Macquarie Capital.
global platform and go deeper into complex site
Keywords: How to Guide, TowerXchange Meetup Preview, O&M, Construction, management tasks.
Valuation, Due Diligence, Opex Reduction, Tenancy Ratios, Co-locations, Data
Room, Exit Strategy, SLA, Unreliable Grid, KPIs, Site Visits, Asset register, TowerXchange: What does the Tarantula
C-level Perspective, Ground Leases, TCF, Asset Lifecycle Platform, Job Ticketing,
Africa, Americas (South), Asia, Europe, Tarantula
platform provide for tower operators?
Udhay Mathialagan, Chairman, Tarantula
Udhay Mathialagan, Chairman, Tarantula: We

Read this article to learn: provide a platform for telecom operators and
< How Tarantula’s platform built for towercos can be configured much more quickly and efficiently than towercos to manage information assets relating
traditional ERP systems to towers across the end to end workflow - from
< The critical data points required to calculate and optimise TCF establishing, operating and monetising assets
< Using a real time asset register to close the gap between what is in the contract and what is on the tower through to the tracking and management of an
< Leveraging ‘single source of the truth’ data to manage a complex supply chain inventory of assets. The platform is purpose-
< The importance of high quality information to get a better valuation of your tower assets built for the tower industry and for the unique
challenges of managing of communications and

power across thousands of distributed sites. As the tower industry evolved into a larger number
of countries, including emerging markets, a new
TowerXchange: How has the tower industry class of smaller and medium sized towercos began
historically managed workflows and asset to emerge, including subsidiaries of large towercos
management? entering new smaller countries. With the move
from developed to developing markets, the business
Udhay Mathialagan, Chairman, Tarantula: When model also became more complex. We moved from
I started out in the business almost 15 years ago, a straight-forward real estate management model
the tower market was confined to big players in the to a tower plus power model, with new operational
US, UK and Australia. These larger players typically challenges, new costs and new penalties associated
managed their businesses using customised with managing unreliable power.
traditional ERP systems at great expense - the
customisation effort even in a smaller country The large ERP systems didn’t respond well, they
could cost US$5-10m to adapt the towerco’s business were too expensive for the scale of some of these
process, and in many cases it still didn’t respond new towercos, so Tarantula filled a natural gap in
“
very well. the market. We had codified tower industry specific the Indian market, and eventually had almost
workflow processes, were able to automate key half the towers in India running on the Tarantula
business processes, offering a cost effective, fast platform.
deployment solution.
TowerXchange: What is Tarantula’s footprint
With the move from developed TowerXchange: Tell us the story of Tarantula’s worldwide?
to developing markets, the origins - how did you “codify tower industry
specific workflow processes”? Udhay Mathialagan, Chairman, Tarantula: We have
business model also became
a substantial footprint in Europe, particularly in
more complex. We moved from
Udhay Mathialagan, Chairman, Tarantula: Tarantula the UK and Scandinavia, and in India. We’ve done
a straight-forward real estate started in the late 1990’s in the UK, initially as a a few implementations in Africa, with a more in
management model to a tower
plus power model, with new
operational challenges, new costs
and new penalties associated with
managing unreliable power
“ web-based platform site-share.com, supporting
the industry with information about what was
happening in the sites market. Site-share.com
provided an open platform, and everyone put their
data on it.
the pipeline. Our market-tested solutions are highly
relevant to the rapidly growing markets in Africa.
With our global headquarters being consolidated

in Singapore, we’re going to get increasingly active
in Asia, especially South East Asia, where there are
Tarantula developed an understanding of what some exciting market developments in the tower
people were doing with assets. As the emerging market. We’re also working towards a partnership
market tower industry took off, Tarantula entered approach in the Americas.

“
TowerXchange: How did the information of sense.
management requirements of your customers
evolve as your focus expanded from the TowerXchange: Tell us a bit more about the
developed UK and Scandinavian markets into configuration that is required to adapt to
emerging markets? different towerco’s unique business processes.
it’s all about Tower Cash Flow
Udhay Mathialagan, Chairman, Tarantula: In
developed markets, our platform was mainly used
for lease management - managing ground leases
and leases to clients - and inventory management.
The biggest difference moving into emerging
Udhay Mathialagan, Chairman, Tarantula: We’ve
been through many combinations of different
market dynamics and different customer needs, so
we’ve market tested our codified tower industry
workflow processes. There is always something
(TCF) - how much cash is being
“
generated at a unit level. TCF is
the first metric investors look at it
when evaluating tower portfolios
markets was the addition of energy management - unique to bring in from a new customer’s business
understanding the energy mix particularly at sites plan, but we’re not starting from raw code; we have
connected to the grid but not necessarily available a platform that works. Towercos have a trade-off of
all day; balancing the use of grid, battery and diesel cost and time to adapt, so time to market is critical. Udhay Mathialagan, Chairman, Tarantula: When
generators (later adding renewables). So it evolved you’ve worked in the tower industry as long as
from a pure real estate to a real estate plus energy Configuration requirements vary by customer, I have, you know it’s all about Tower Cash Flow
logistics game. but the core processes of tower operators are not (TCF) - how much cash is being generated at a unit
that different - managing build-to-suits, leasing to level. TCF is the first metric investors look at it
Another big difference between developed and tenants, managing maintenance processes and fuel when evaluating tower portfolios. TCF is a product
developing market tower portfolios is that in supply. Tower operators need to be able to adjust of the revenue or cash flow per tower, which itself
developed markets portfolios are most often dynamically to emerging new opportunities as they is a function of the tenancy ratio and lease rate.
assembled through asset purchase, whereas there acquire more towers, win build-to-suit contracts, TCF also incorporates how much revenue is being
is more green field activity in emerging markets. or as the regulations change. Tarantula has a dispersed to landlords through the underlying
To support these complex construction projects, we dynamic platform built specifically for towercos, ground lease costs, and how much is spent on
developed a deployment module. So the Tarantula supported by people with knowledge of the towerco maintenance.
platform covers the end to end workflow; from a business, which means we can configure the system
front end construction module, through a central very quickly and efficiently, which is a compelling The tenure on the underlying ground lease is
module for managing financial and legal processes, alternative for towercos who would otherwise critical, and Tarantula helps towercos track this.
to a back end O&M management module. We’ve spend US$millions adapting a much larger ERP Investors always want to know the long-term lease
codified tower management business processes in a system. costs and whether they are at risk. Towercos in
box, enabling towercos and MNOs to get to market developed markets spend $millions extending
very quickly by configuring unique elements TowerXchange: What are the KPIs through which and stabilising their ground leases, but ground
of their business process onto the platform. For tower operators should measure and manage leases are even more complicated in developing
companies moving into new markets it makes a lot performance? markets where you’re dealing with multiple

federal, municipal and environmental regulatory Revenue is reported through normal financial managed service provider converting Service Level
authorities, not to mention a range of different real systems, with revenue assurance and asset tracking. Agreement commitments into their own complex
estate legal frameworks. The Tarantula platform spreadsheet, then a field engineer converts it into
enables you to add compliance processes to follow What is physically on a tower and what’s reflected a Word document - instructions and metrics are
and to create a view of your lease model. This in contract are not always the same things! Having corrupted by their transfer.
enables tower operators to create an early warning a real time asset register gives you a better quality
system when lease renewals are coming up, and to framework for revenue assurance, and a sound Our platform allows field engineers visiting a site
create a proactive strategy to secure leases at a good basis for a mature conversation with the client. So to work against exactly the same task list as seen
cost level. good information management is critical to bridge at the NOC, and to upload data back to the NOC. In
the gap between what’s in the contract and what’s this way, the tower operator can confidently tick off
The tower industry may be young in Africa, but actually on the tower. milestones - and suppliers don’t get paid until they
it’s important to have high quality data on ground have provided data, in the right format, proving a
leases that you can slice and dice. Being able to get accurate and consolidated data task has been completed in a timely manner, and
across sites enables you to make commercial the completion of that task has been accepted.
TowerXchange: What are the other critical data decisions on the front line of the marketing of
points when managing and maximising TCF? towers and the sale of tenancies, and to meet Managing small suppliers in remote operations
specific client requirements. Having the ability requires a “single source of truth” set of data.
Udhay Mathialagan, Chairman, Tarantula: From a to get accurate and timely information on these Managing subcontractors becomes a data-based
costs perspective, there are key data points around distributed tower assets will enable towercos to interaction with remote supply chain participants.
property. In developed markets you can almost come up with smarter commercial and promotional Significant managerial skills are required,
have an attitude of ‘set and forget’, at least you can deals, and ultimately to optimise revenue. Tarantula but we’ve standardised data and embedded
have that attitude to costs other than those relating has the ability to create reports that have been workflow processes in a way that results in a more
to long-term ground lease costs. In developing proven across multiple markets and situations to professional approach to managing the supply
markets property, power and regulations are always give more levers for an emerging market towerco to chain. We also generate an audit trail of what’s
changing. The asset may be “passive”, but nothing run their revenue engine. happened - that’s the power of data - there’s a
about the information is! Tenants may add new lot of information that can’t be retrieved from
equipment, the underlying lease may change - there TowerXchange: Looking beyond the tower spreadsheets and word documents spread across
are literally hundreds of data points per tower. operator, how does site-share.com help to align locations.
and manage subcontractors and suppliers within
A lot of first generation towercos didn’t need this the tower supply chain? TowerXchange: How does Tarantula’s mobility
level of information detail, but in developing platform support the management of remote
markets you need better control and monitoring Udhay Mathialagan, Chairman, Tarantula: This is an suppliers?
systems to optimise energy opex, maintenance area we’re particularly good in!
processes and ultimately to achieve your business Udhay Mathialagan, Chairman, Tarantula: We’ve
plans. Without a platform like ours, you can find a put our software on a smart phone to enable the

“
tower operator to push detailed jobs out to staff and need to be able to withstand those due diligence
contractors. processes to close the transactions. I have first-hand
experience of selling my company to American
The mobility platform enables accurate information Tower, and I’ve worked with Crown Castle so I
transfer to field staff: which site to go to, which know how they evaluate assets.
tasks to undertake, which data to capture. The app the major international towercos
generates a geo-coded, time stamped audit trail. High quality information gives confidence to the have very thorough due diligence
The mobility platform can help reduce site visits or buyer. If you’re scratching around for information, processes, and you need to be
make them more efficient - if someone is visiting to you’re opening yourself up to downward
able to withstand those due
replace battery they can take a picture of the assets
on the tower at the same time.
Labour may have a cheaper unit cost in developing

markets, but developing market towers require
a lot more site visits, and the economic cost of
renegotiation of the multiple. Information quality is
the first impression even before a potential acquirer
takes a sample of your physical assets - you can’t
reverse engineer high quality information four
years after the assets were built or initially acquired
- you’ve got to ensure high quality information from
diligence processes to close
the transactions... High quality
information gives confidence to
the buyer
“
inefficiency is quite high. Tarantula are bringing day one.
technology to bear to make site visits more
productive. TowerXchange: Actually, one more question -
in your experience how does the information with 2G and 3G. They’re using property rights
TowerXchange: Finally, as a tower-industry quality compare between towercos and MNOs? in different ways, blending technologies at a
leader with experience of tower transactions, combination of owned, shared and leased towers.
tell us how using Infrastructure Lifecycle Udhay Mathialagan, Chairman, Tarantula: A few The nature of tower sharing has shifted from one-
Management platforms like Tarantula’s can MNOs in markets that are exposed to the towerco to-one relationships, to the complexities of network
improve the valuation of tower assets? business model are starting to develop a concept of joint ventures and multi-band technologies in
what their assets could be worth. They’re starting to the same slots; there are more variables. Towers
Udhay Mathialagan, Chairman, Tarantula: Good appreciate the need to manage towers as a distinct are a multi-dimensional matrix that needs to be
question! There are two parts to my answer: one, asset element and therefore realise improving the managed. MNOs’ traditional network management
having better systems and controls helps tower quality of their information can improve value. tools would need to be heavily customised to
operators drive TCF in a smarter way. Through the manage such complexity; Tarantula’s pedigree
lifecycle of owning an asset, you want do everything Our engagement with MNOs has increased sharply in wireless site management is embedded in our
possible to optimise TCF using all the information this year. We have an end to end workflow and product and in our people - MNOs entering into
and control tools we put at your disposal. Then two, asset management system for managing distributed complex sharing agreements for LTE or deploying
once you’ve negotiated the headline valuation with tower networks, and we’re noticing that MNOs purpose-built emergency networks need to manage
an acquirer, the major international towercos have rolling out 4G / LTE use tower assets and rooftops information around these new modes of sharing at
very thorough due diligence processes, and you in different ways from what how they used them complex, distributed sites

If you can’t measure it,
TowerXchange: Please introduce
TowerXchange’s readers to HMS Industrial
Networks, particularly your experience in
you can’t manage it telecoms.
Bartek S Candell, Global Key Account Manager,

Netbiter remote management system applies Drucker to the management of cell sites Telecom Infrastructure and Energy, HMS
Industrial Networks AB: HMS is a leading
TowerXchange was once asked whether the integration supplier of industrial communication technology
of M2M-enabled sensors into cell site equipment would with 350 employees, operations in 10 countries,
eventually render existing RMS systems redundant? and distributors in over 50 countries. We’re a
We think the opposite - the integration of varying public company with annual turnover of €50m+.
communication protocols from different sensors and the While the company was founded in 1988 and our
communication of the information back to the NOC has initial applications were in industrial automation
never been more important. HMS Industrial Networks’ and control, we got into the telecom business
Netbiter solution enables tower owners to connect any three years ago; having supplied RMS to diesel
equipment with a communication interface to their generator control panel manufacturers for
gateway, which in turn provides critical information which many years, we realised we could expand the
the NOC can use to reduce opex costs. By understanding package to provide more holistic monitoring and
when, how and if equipment is operating, tower management of important aspects such as energy
operators are able to make better decisions regarding site generation and consumption, and package it in to
maintenance and take actions when necessary. a ‘plug n play’ solution.
Keywords: Who’s Who, Monitoring & Management, RMS,

We have two brands of interest to TowerXchange
Installation, Opex Reduction, Batteries, Fuel Security, Free
readers: Netbiter Remote management Solution
Cooling Units, Air Conditioning, DG Runtime, KPIs, Site
(RMS) and Anybus protocol converters for
Visits, Rectifiers, Infrastructure Sharing, Africa, Angola,
HMS Industrial Networks, Nebiter, Anybus
industrial communication.
Bartek S Candell, HMS Industrial Networks AB
Every device, whether on a cell site or production

Read this article to learn: floor, has its own communication protocol,
< Using a gateway to integrate the diverse communication protocols from different cell site equipment and the amount of protocols is increasing
< Progressing from scheduled to predictive maintenance to reduce opex dramatically. HMS’s Anybus embedded
< The benefits of ultrasonic compared to pressure fuel tank sensors communication modules enable communication
< How to measure Energy Efficiency Ratios (EERs) to target underperforming sites in-between devices and networks. The Netbiter
gateways and Netbiter cloud services connect

devices and enable remote monitoring, Cell sites are often serviced according to pre- dispatched.
management and control. This provides instant determined, scheduled maintenance. As site
access to information such as system status, visits, particularly to remote sites, are costly, TowerXchange: Tell us about the installation
performance and provides possibilities to analyse those costs can be reduced through RMS by of your system and how it’s connected back to
and remotely operate equipment. In turn this monitoring and configuring the site remotely. the NOC.
enables operators to reduce cost and improve The benefit is that you will be able to send teams
efficiency, better analyse equipment behavior, only to sites that need servicing, and you will Bartek S Candell, HMS Industrial Networks AB:
and to transform maintenance procedures from also know in advance what equipment to tend It requires minimum of technical expertise to
reactive to proactive. to, enabling a team with the right skills to be install the Netbiter gateway at a cell site. It’s

plug and play - all you have to do is install the < Rectifier and battery management level alarms and most important; verify the refills
hardware to the rack, power it up, connect to < Renewable energy management and reduce the fuel refill intervals.
the equipment you wish to monitor and/or < Fuel cell management
control, and leave the site - the gateway connects < Free cooling / air conditioning management The ultrasonic sensor is tamper proof - if
automatically with our Netbiter Argos cloud someone cuts the cable or removes the sensor we
service. With all configurations undertaken TowerXchange: How big is the fuel theft immediately get an alarm that incoming data is
remotely via the cloud, tower operators avoid problem at cell sites, and how do you help not correct.
the need to employ high cost, scarce engineering tower operators overcome that problem?
skills to install our system. Furthermore, what’s unique about our ultrasonic
Bartek S Candell, HMS Industrial Networks AB: sensor compared to other sensors is the
Remote connectivity is provided via 3G, GPRS or The Indian telecom industry consumed 3200bn possibility of remote configuration. Basically the
Ethernet. We offer our own web-based front end, liters of diesel during 2012 and the estimation only thing you do on site is to mount the sensor
often used for more advanced configuration of is 4400bn litres of diesel in 2014[i]. Customers on a tank and connect to the Netbiter gateway.
existing equipment on site. Many customers use have told us that approximately 30% of this can The rest is done remotely.
our API to integrate Netbiter cloud service with be fraud! This is of course a huge problem and
their third party OSS software, gathering data we decided to come up with a good solution TowerXchange: Tell us about your system’s
directly from our cloud into their own system. for this. But since our core business is remote capabilities in genset management.
communication and we had to come up with
TowerXchange: What equipment can Netbiter a high quality solution for level measurement, Bartek S Candell, HMS Industrial Networks AB:
monitor at a cell site? our choice was to team up with a German world We have for several years been the preferred
leading manufacture of level measurement RMS supplier to many of the world’s leading
Bartek S Candell, HMS Industrial Networks AB: sensors - Pepper & Fuchs. genset control manufactures. If you connect the
With the minimum of site modification, Netbiter gateway to the genset controller via
we can monitor and control basically any The outcome of this great partnership is a very existing Modbus interface you get access to all the
existing equipment on a site through our M2M unique, top mounted ultrasonic sensor able to parameters and settings you would have locally
communication interface. measure tank level, refilling, consumption and on the controller like DG runtime, genset output,
theft. To reach high resolution and accuracy battery levels, oil pressure, engine RPM, coolant
Netbiter is available in building blocks - it’s like a we needed to take the environmental aspects temperatures et cetera. Our solution then enables
menu from which you can select ingredients such into account. The sensor is compensating for you to remotely set parameters, or start / stop the
as: temperature changes in the diesel tank as well genset and collect alarms. If there is no Modbus
as humidity. If a tank is mounted underneath a available you can easily connect the dry contacts
< Fuel management generator we compensate for the vibrations from to the Netbiter gateway’s built-in I/O ports.
< AC metering the genset as well. With this high accuracy data
< DC metering collected we can easily present correct tank level, In Europe the problem is actually opposite from
< Genset management theft (on customer defined thresholds), low/high other markets, the DG’s are not running that

“
by HMS. The solution makes it simple to keep that big.
track of multi-tenant sites but most import; by
measuring the incoming power and consumed In Angola we are rolling out our solution on
telecom power you easily get a site energy 1,000 cells where the customer will monitor and
efficiency ratio to compare with other sites which control the DGs remotely.
by measuring the incoming
power and consumed telecom
power you easily get a site energy
efficiency ratio to compare with
other sites
“ by evaluating the result, allows you to target
underperforming sites that require investment.
All data is collected in the Netbiter RMS cloud and

can easily be extracted in weekly and monthly
reports, exported to excel format, or sent via the
I can also tell you that we are working with one
of the world leading technology suppliers for cell
sites.
HMS will be going an African Roadshow with

API to customers’ existing SSO. Business Sweden, Ericsson and other Swedish
telecom suppliers this year. We will also attend
In a similar way, Netbiter enables the the Towerxchange Meetup Africa, and we are as
often. Our customers use our solution to remotely management of free cooling, air conditioning well working on several tenders from the region.
test-run the DGs to verify their operating status so units and PIU’s (i.e any equipment with Modbus)
they are ready to start when really needed. - with full remote access. We can collect all TowerXchange: Please give our readers an
parameters, change settings to manage alarms idea of the capital outlay required on a per
But probably the most important factor is that and monitor when to change filters or perform site basis and the timeline to RoI.
our RMS solution enables the tower operator to any other necessary maintenance related activity.
switch from scheduled to predictive maintenance Bartek S Candell, HMS Industrial Networks AB:
of the DGs, creating savings in all the aspects that Finally, I also want to mention that in Q4 of this Of course the answer varies according to which
relates to service trips. year we’ll be releasing a new product which equipment is being monitored on a site, the level
enables a transparent channel to ex Energy of existing diesel theft/fraud and the cost of diesel
TowerXchange: How does Netbiter measure controllers or rectifiers enabling upload of new in the local market. Assuming that we have a cell
and enable the better management of the firmware or the downloading of log files from the site with DG running 24/7 with a consumption of
performance of cell site energy? rectifiers. This will further strengthen our offer 2 liters/hour (0,80EUR/liter diesel) and 4 % fraud,
and allow us to expand our capabilities in site will give us an RoI of 12 months.
Bartek S Candell, HMS Industrial Networks AB: monitoring!
Netbiter enables tower operators to monitor The Netbiter Remote management solution for
the availability, quality and consumption of all TowerXchange: What’s HMS’s installed base in one site starts from approximately EUR360 for
incoming power, existing (passive) equipment Africa? the hardware and approximately EUR50 per year
and the telecom load. It’s possible to connect for cloud services
up to 32 energy meters to our gateway, this can Bartek S Candell, HMS Industrial Networks AB: As [i] http://www.greenpeace.org/india/Global/india/report/
be already existing meters or meters supplied Africa is a new market for us our presence is not Enabling-Clean-Talking.pdf

online
www.landmobile.co.uk
The home of wireless communications

for business on the web
May 2013
May 2013
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news • features • back issues
TO REGISTER FOR OUR FORTNIGHTLY

NEWSLETTER PLEASE VISIT OUR WEBSITE
Special feature:
TowerPower - reducing
Africa’s reliance on
diesel, part four
Another battle of the power makers ensues in this latest
edition of TowerPower.
In the hybrid corner, Emerson Network Power describe

a broad portfolio of products and capabilities to provide
hybrid and solar energy to data centres, core and access
sites. In the fuel cell corner, market leaders Ballard make
the case for methanol, a fuel which reduces theft as it has
no alternate use, and highlight the efficient scalability of
their system.
In the wind corner, distributed small wind leaders

UGE propose their Levelised Energy Agreement as
an alternate model for outsourcing cell site energy.
Continuing the business models debate, Flexenclosure
preview their round table at the TowerXchange Meetup
in which they will seek a middle ground between the
pure-capex and the zero-capex contractual models.
Finally, Kiwi-innovators Enatel describe how their energy

solutions help operators and towercos achieve high 9s
uptime, while DAQS introduce their free cooling systems.
Your TowerPower profiles this edition:

88 Emerson optimise critical infrastructure
93 Ballard: when should fuel cells replace diesel?
97 Outsource cell site energy to UGE
103 Flexenclosure’s business model round table
107 Enatel on how to achieve high 9s uptime
114 DAQs on how to cut the cost of air conditioning

Optimising critical
TowerXchange: Where does Emerson Network
Power fit in the telecoms infrastructure supply
chain?
infrastructure Gary Niederpruem, VP of Global Marketing and

Strategic Planning, Energy Systems, Emerson
Emerson Network Power’s solutions for data centres, core and access sites
Network Power: Emerson Network Power’s
Energy Systems group focuses on the critical
Keywords: Who’s Who, infrastructure for both core and access sites. We
Energy, Monitoring & have a broad portfolio of products and solutions
that includes: automatic transfer switches for
Management, Capex,
utility grid and generator interfaces, AC UPS
Opex Reduction,
systems, DC power for core and access sites,
Batteries, Loading, cooling solutions for data centres, enclosures
Data Centres, Air for power and equipment, monitoring and
Conditioning, RoI, management capabilities, and comprehensive
ESCOs, Hybrid Power, service offerings.
Solar, Dimensioning,
The breadth of products and services Emerson
Africa, Americas (South), Network Power is able to offer is one of our key
Emerson Network Power differentiators.
Gary Niederpruem & Nevan Witchell, Emerson Network Power
TowerXchange: What is your installed base in

Emerson is a US$25bn conglomerate comprised of five different business platforms,
emerging markets, particularly Africa?
including Emerson Network Power, which primarily supports telecom and data centre
customers. TowerXchange spoke to two senior executives within Emerson Network Nevan Witchell, Managing Director, SSA, Emerson
Power’s telecom-focused Energy Systems business to learn about the company’s broad Network Power: We’ve been operating in Sub-
product and service capabilities. Sahara Africa (SSA) for decades, and our installed
base is in the thousands if not tens of thousands
Read this article to learn: of product installations. Those installations
< Deploying hybrid and solar energy solutions to meet the specific requirements of core and access sites support critical infrastructure with DC power,
< Using an ‘integrated solution’ to provide a fast-deployment data centre in a remote region of Africa hybrid solutions, thermal management and
< Using base components and building blocks to enable efficient customisation of energy solutions integrated shelter solutions.
< The critical role of monitoring and management, backed up by the service capability to resolve problems
Emerson Network Power has sales and service

representation in most countries in SSA,
sometimes maintaining direct relationships with
operators, at other times working with systems
integrators or partners for power and thermal
management.
TowerXchange: Tell us more about these

‘integrated shelters’.
Nevan Witchell, Managing Director, SSA,

Emerson Network Power: We have many types
of integrated shelters; some are on-demand
data centres, central offices or core switching
centres, while others provide the energy and
thermal management infrastructure for smaller
deployments and remote nodes.
We recently had a large project where a customer

needed a core site up and running quickly in a
very remote region. We worked with the CTO and
their technical team to establish how to achieve
their objectives using our technology - starting
with the customers’ pain points is a vital part TowerXchange: How has Emerson Network to site locality to the criticality of the site and of
of our approach. Since our integrated modular Power been able to support your customers in course any planned expansion of the site in the
shelters are designed, built and tested at the the battle to reduce Africa’s crippling energy future.
factory, they can be rapidly installed onsite which opex costs?
was one of the key challenges for this customer. Furthermore, different operators have different
Thanks to our broad expertise we could take Nevan Witchell, Managing Director, SSA, approaches - some want zero-capex models;
this project from equipment production to Emerson Network Power: Emerson Network some accept some capex up front, with longer-
installation onsite, to full commissioning of the Power introduced hybrid energy solutions into term opex savings. Some operators believe in
infrastructure in less than 12 weeks compared the access network in SSA in 2005, when energy battery preservation to reduce their carbon
to a traditional brick and mortar installation opex first emerged as a critical issue, and that footprint, while others take a shorter-term view
which can take up to six months to complete. The had a huge impact. There are many variables that on battery life to drive short term OPEX savings.
above is backed up by remote monitoring and in- contribute to defining what each customer thinks This is why we look beyond product and focus
country maintenance and field services. is important at a site - these range from site load on the complete solution. We look at sites on

for opex savings. When we audit core facilities, Nevan Witchell, Managing Director, SSA,
we identify several ways to realise those savings, Emerson Network Power: We blend a lot of
whether through cooling, power systems, technical inputs, factor in whether the customer
electronics, lighting or layout, and almost is taking a long-term or short-term approach
always incorporating intelligent monitoring to RoI, and devise the best solution to meet the
and controls. Emerson has substantial auditing customer’s needs. We usually start with site load,
and engineering expertise - an area where our which isn’t a simple number to identify. The
Services team also excels. range can be quite broad, and even sites running
the same equipment in different areas can have
TowerXchange: How do you strike a balance different loads. It’s also important to prepare
between the need to customise energy a site to cope with the largest potential load
solutions to meet the needs of each site, and required.
the financial imperative to standardise where
possible to reduce cost and complexity? Of course everyone would love to eliminate both
capex and opex, but that’s not realistically going
Gary Niederpruem, VP of Global Marketing and to work. We work with the customer to find a
Strategic Planning, Energy Systems, Emerson reasonable investment with a reasonable RoI
Network Power: That’s a constant debate, and our period to ultimately deliver better opex savings
solution is to offer base components and building in the long term.
blocks that can be integrated and delivered
relatively easily. We can configure those base Gary Niederpruem, VP of Global Marketing and
components and building blocks to quickly create Strategic Planning, Energy Systems, Emerson
a customised solution. Network Power: We also need to consider
location in order to effectively dimension a cell
an individual basis, deploying hybrid and solar
Nevan Witchell, Managing Director, SSA, site. How physically remote a cell site is might
solutions where appropriate, rather than taking
Emerson Network Power: If it’s a substantial determine whether it uses dual diesel generators
a one-size-fits-all approach across thousands of
network upgrade or greenfield site rollout, we on one extreme or 100% renewables on the
sites.
might take a small sample of sites, surveying the other, and of course grid availability and stability
environment at those sites, and use that input to is key. We have solar profiles and array maps
Gary Niederpruem, VP of Global Marketing and
push the standardisation of solutions as far out in that predict the number of hours of sunshine
Strategic Planning, Energy Systems, Emerson
front of us as possible. per day to determine whether solar is an option
Network Power: In core sites, no one situation
or not. Another factor is the criticality of the
is the same; everything is nuanced, and there
TowerXchange: What data inputs do you site - smaller access sites versus critical macro
can be substantial capex and opex required
need to dimension one of those upgrade or sites. We consider all of these things.
for a single facility. However, there also are
greenfield site rollouts?
substantial - and often untapped - opportunities

TowerXchange: Is the zero-capex energy as a effectively and efficiently, ensure reliability and
service business model a realistic option in deliver their full potential opex savings.
emerging markets yet?
Gary Niederpruem, VP of Global Marketing and
Gary Niederpruem, VP of Global Marketing and Strategic Planning, Energy Systems, Emerson
Strategic Planning, Energy Systems, Emerson Network Power: Monitoring and managing
Network Power: I think there is a market for critical infrastructure is essential. Emerson
some form of capex financing where payment Network Power’s monitoring and management
comes through shared opex savings, but most of solutions can work with any equipment, however
the time the energy service provider has trouble they deliver a richer set of information and
making the long-term economics work. We have maximum control when married up with our
executed some programmes with financing own equipment.
involved, but I believe the traditional capex
model will still exist 3-5 years from now. People TowerXchange: Finally, please sum up how you
are experimenting with the ESCO model, but we differentiate Emerson Network Power from
don’t believe it will be the predominant business your competitors.
model in the near-term. Ultimately we’ll stay
close to our customers and be responsive to their Gary Niederpruem, VP of Global Marketing and
needs. Strategic Planning, Energy Systems, Emerson
Network Power: With the convergence of data
TowerXchange: Tell us about the role remote centres and telecommunications, core sites
monitoring and management plays in your increasingly will be mixed model applications.
solutions. One of Emerson Network Power’s unique
qualities is our ability to provide a broad
Nevan Witchell, Managing Director, SSA, portfolio of energy solutions supporting this
Emerson Network Power: Remote monitoring evolving, converging space; AC or DC, monitored
and management is critical everywhere, but or unmonitored, sold or installed.
especially in Sub-Saharan Africa. We are
dealing with remote sites in difficult-to-reach Emerson is a global company with many global
locations and extreme environments. Anything clients. Even where our clients have a more
that can minimise site visits without impacting localised footprint, we can share best practices
performance is incredibly valuable. Effective learned worldwide. We have a prevue over
monitoring and management does that. macro trends in different regions that provides
Additionally, tower operators must improve us with unique insights to address customer
visibility into their networks to manage them problems.

“
DECREASE NETWORK COSTS WHILE
INCREASING RELIABILITY AND EFFICIENCY.
We’re not thinly engaged in THAT’S THE

different verticals and moving
sideways into telecoms - our CRITICAL DIFFERENCE.
Energy Systems group has 50-
60 years of domain knowledge
in telecom and data centre
“
infrastructure, globally as well as
in Africa
We’ve invested R&D to develop our monitoring Emerson Network Power, the Emerson Network Power logo, Emerson and Consider it Solved are service
and management capabilities because we think

visibility is critical. And we have our own service
marks and trademarks of Emerson Electric Co. or one of its subsidiaries.
arm, so we can dispatch our people to resolve any

alarms. Hybrid Energy solutions from Emerson Network Power
ensure the best operational cost … always.
Finally, this is what Emerson Network Power Hybrid Energy solutions feature innovative
does. We’re not thinly engaged in different active site infrastructure management that can
verticals and moving sideways into telecoms - reduce energy consumption significantly to
our Energy Systems group has 50-60 years of ensure your network is running at an optimal
domain knowledge in telecom and data centre level of efficiency and reliability at all times.
infrastructure, globally as well as in Africa.
EmersonNetworkPower.eu/Hybrid
Visit Emerson Network Power at booth #27 at the
TowerXchange Meetup, taking place on October 1
and 2 in Johannesburg
www.towerxchange.com/meetups/africa

When should fuel cells TowerXchange: Please introduce us to yourself
and to Ballard - where do you guys fit in the
replace diesel power at emerging Karim Kassam, VP, Corporate & Business
market cell sites? Development, Ballard Power Systems: One of

my key priorities in this role is to leverage our
Fuel cell technology offers a clean, quiet and reliable power solution with a smaller footprint products and capabilities in emerging market
opportunities and build strategic alliances
Under what conditions are fuel cells a viable alternate source of with partners who will deliver our solutions to
power compared with diesel generators? How does the Total Cost of telecom providers worldwide.
Ownership (TCO) and energy logistics processes compare to diesel? To
find out, TowerXchange spoke to the pre-eminent fuel cell company One of Ballard’s key commercial segments is
worldwide, Ballard Power Systems, who have been at the forefront
telecom power solutions - emergency backup
of fuel cell development for applications such as automotive, telecom
and supplemental power in areas where grid
backup power, material handling and buses. More recently Ballard
power is not effective or that are subject to crisis
has added focus on Engineering Services given its unmatched
industry “know how” from working with Daimler and Ford and now
situations.
Volkswagen. However, one of Ballard’s key commercial markets is in
telecom, where their fuel cell technology is used to provide power at We’ve achieved great traction in disaster prone
unreliable and off-grid cell sites and in emergency situations caused by areas such as coastal communities vulnerable to
natural disasters or extreme weather. floods, hurricanes or tsunamis, where fuel cell
systems offer extended duration power compared
Keywords: Who’s who, Energy, Fuel Cells, O&M, Installation, Capex,
Capacity Enhancements, Fuel Security, Loading, Off-grid, Unreliable Grid,
with batteries and diesel gensets. Fuel cell
Hybrid Power, Methanol, Hydrogen, Logistics, Change Management, Site systems can run for days before refueling, which
Visits, Africa, Asia, Americas (South), Vodacom, Inala, Ballard Power can be critical in disaster recovery contexts.
Karim Kassam, VP, Ballard Power Systems Systems
Fuel cell systems are also effective as a
Read this article to learn: replacement for diesel gensets at unreliable or
< What is the ‘sweet spot’ for adoption of fuel cells in terms of relative fuel cost, grid availability, runtime off-grid sites, or where there is a need for cleaner
and site load power solutions with a smaller footprint than
< The impact on fuel theft of switching to a fuel with no alternate use incumbent solutions. Southeast Asia, Africa and
< The capex and installation costs of fuel cells and TCO compared to DG+battery power
Latin American are key growth markets for the
< The refuelling logistics and asset lifecycle of fuel cell solutions
use of fuel cells as backup or primary power
solutions for telecom cell sites.
< The efficiency of fuel cells as sites expand from single to multiple tenants

“
TowerXchange: How does fuel cell technology Development, Ballard Power Systems: The
compare to DG, DG+battery and solar-hybrid benefit of fuel cell solutions is that they are able
primary and backup power solutions for cell to follow the site load, which improves overall
sites? efficiency. Unlike diesel generators, it is efficient
The benefit of fuel cell solutions to oversize the power solution from the initial
Karim Kassam, VP, Corporate & Business
Development, Ballard Power Systems: Fuel cells
produce electricity without combustion, which
means that, unlike internal combustion engines,
they generate little (if any) noise, vibration, air
pollution, or greenhouse gases and operate at
“
is that they are able to follow the
site load, which improves overall
efficiency... With fuel cell systems,
you simply run the power as you
require it
installation because it will only deliver the
output required. For example, we can install our
2.5kW ElectraGenTM-ME fuel cell system, run it
at 800w at an efficient cost per hour, and have
the capacity ready to add a second and third BTS
without the need for additional capex as power
high efficiencies over a wide range of loads. requirements increase. Ballard also offers a 5kW
ElectraGenTM-ME system. With fuel cell systems,
Unlike batteries, fuel cells do not have a need you simply run the power as you require it.
for replacement or lengthy recharging when its The main advantage of fuel cells over wind and
fuel is spent. Additionally, since fuel cells store solar power is that you are no longer dependent TowerXchange: Tell us about the capital
their fuel in external storage tanks, the maximum on weather. With a fuel cell system you can investment required to install fuel cells at cell
operating range of a fuel cell-powered device is access reliable power as needed rather than sites.
limited only by the amount of fuel that can be having to wait for the correct weather conditions.
carried. Karim Kassam, VP, Corporate & Business
TowerXchange: What’s the sweet spot for your Development, Ballard Power Systems: The cost
One of the main value drivers for fuel cell solutions in terms of grid availability? of fuel cell power has fallen by approximately
technology in Africa is the replacement of 30% per year over the last five years. While the
costly diesel generators, and the eradication of Karim Kassam, VP, Corporate & Business initial capital cost may be similar or slightly
pilferage. Fuels cell systems provide a mitigation Development, Ballard Power Systems: The above that of a diesel generator, the total cost
strategy in markets where one of our chosen business case for investing in our fuel cell of ownership benefits outweigh the initial
fuels, methanol, is available at a lower cost than solutions is particularly compelling at sites investment. Positive payback over the fuel cell
diesel. Ballard’s ElectraGenTM-ME methanol- requiring a minimum of 10 days between system lifecycle are mainly driven by reduced
fuelled solution is a good choice because there refueling visits, and where grid power is maintenance requirements, reduced cooling
is no alternate use of the fuel which means fuel available no more than 6-8 hours per day. expense, longer lifetime of the fuel cell system
theft ceases to be an issue. In addition, refueling and the elimination of costs due to generator and
visits to remote sites can be up to two weeks TowerXchange: And what’s the sweet spot for fuel theft.
apart, depending on the size of the fuel tank, your solutions in terms of site load?
which means a significant reduction in site visits TowerXchange: Talk us through the process of
and associated opex. Karim Kassam, VP, Corporate & Business installing fuel cell power at cell sites.

ElectraGen™-ME Total Cost of Ownership
• Total cost NASDAQ:BLDP z TSX:BLD
• • Reformed
Total costmethanol fuel cell solution
• Running 11 andmethanol
24 hours per day TowerXchange: There’s a preconception that
• Reformed
ElectraGen TM
-ME Total Costfuel cell
ofsolution
Ownership the refueling logistics of fuel cells can be as
• External tank11
• Running 1,000 liters
and 24 hours per day
Total cost complex and costly as diesel - tell us about the
• <Economic
• External tank 1,000 liters
benefits
Reformed methanol fuel cell solution < Running 11 and 24 hours per day < External tank 1,000 liters process and change management implications
• Economic benefits
• Positive payback over lifecycle, driven by: reduced maintenance requirements; reduced cooling expense; of using fuel cells.
Economic benefits
• Positive
longer lifetime associated
payback with fuel
over lifecycle, cell by:
driven system;
reducedand reduced fuel
maintenance theft issues
requirements; reduced cooling expense;
< Positive payback over lifecycle,
longer lifetime associateddriven by: reduced
with fuel cell system; maintenance
and reducedrequirements; reduced cooling
fuel theft issues Karim Kassam, VP, Corporate & Business
• Savings
expense; grow
longer linearly
lifetime with number
associated of sites
with fuel cell system; and reduced fuel theft issues
• Savings grow linearly with number of sites Development, Ballard Power Systems: The
< Savings grow linearly with number of sites
$600,000 refueling logistics of hydrogen can be a bit more
$600,000 challenging. Hydrogen is an excellent choice for
$30,000
$30,000
$25,000$25,000
$500,000
$500,000 5kW / 11
5kW / 11 emergency backup power where you require
HOURS/DAY
$20,000$20,000
HOURS/DAY a system to run for up to 72 hours but very
$400,000
$400,000
$15,000$15,000
infrequently. If the requirement for power is
Running1111Hours
Running HoursPer
Per $300,000
$300,000 5kW / 245kW / 24 more frequent, such as on a daily basis, our
$10,000$10,000 DayDay
$5,000 Running 24 Hours Per
HOURS/DAY
HOURS/DAYmethanol-fuelled solution is a better fit.
$5,000 Running 24 Hours Per $200,000
$200,000
$0 Day
$0 Day
$100,000 The nice thing about methanol is that the
$100,000
$0 refueling process is similar to diesel - it’s a liquid
$0 fuel, with a hub and spoke distribution model,
1 2 3 4 5 6 7 8 9 10 11
1 2 3 4 5 6 7 8 9 10 11 so the change management challenges are
“
minimal. One of the reasons we work through
Karim Kassam, VP, Corporate & Business TowerXchange: What is the typical asset
Development, Ballard Power Systems: In Africa, lifecycle of your solutions? May 21, 2013 z 19
the installation cost of the fuel cell system is May 21, 2013 z 19
typically less than 10% of the cost of the fuel cell Karim Kassam, VP, Corporate & Business
system itself. Development, Ballard Power Systems: We are five years ago the forecast
lifetime might have been 1,500-
Installation is simple; you lay down a pad, install
the fuel cell system, and attach an external tank if
needed based on site specific requirements.
Local site maintenance technicians can be

continually focused on product development;
making sure that we are responding to market
requirements and delivering value to our
customers. So where five years ago the forecast
lifetime might have been 1,500-2,000 running
hours, today our fuel cells can last 10,000 plus
2,000 running hours, today our
fuel cells can last 10,000 hours,
which means you can go 3-5 years
without having to replace the fuel
“
trained to install the solution - there’s no need for hours, which means you can go 3-5 years without cell stack
scarce, expensive, niche technical expertise. having to replace the fuel cell stack if you are
running the system at 8 hours or less per day.

“
partnerships under discussion. Ballard doesn’t one part of supply chain team deals with opex,
compete with our channel partners - our role is to another deals with capex.
provide the technology, and our channel partners
install and maintain our solutions according to So this challenges us to come up with a financing
We’ve got over 300 sites with the telco’s or towerco’s need. mechanism that enables Ballard to be flexible to
Vodacom - we’ve probably got

close to a couple of MWs of fuel
cells installed at sites in South
Africa today
“
fuel cell solutions installed with
TowerXchange: Is the transfer of assets from
operators to independent towercos good news
for companies like Ballard?
Karim Kassam, VP, Corporate & Business

meet different clients’ unique requirements.
TowerXchange: Finally, please sum up how you

differentiate Ballard’s solutions from other
alternate energy backup power solutions for
cell sites.
Development, Ballard Power Systems: We think
so. They have different perspectives on energy Karim Kassam, VP, Corporate & Business
opex. Towercos tend to think of the cost of Development, Ballard Power Systems: The
local channel partners in emerging markets is power per minute, and they think about energy reliability of fuel cell systems is a major
that they are able to locally coordinate fueling solutions as a service rather than as capex. advantage in a critical application area like
logistics, which includes validating and approving Towercos look at Total Cost of Ownership (TCO) wireless telecom service, compared to lead-acid
trusted fuel suppliers to assure the quality of fuel so higher upfront capex solutions with payout batteries or diesel generators. And, our fuel
as well as the delivery of fuel to the sites. downstream tend to be viewed more favourably cell systems are capable of providing power
by towercos than by MNOs, where we often find for an extended duration. So, with minimal
TowerXchange: Tell us about your footprint of maintenance requirements, these performance
installed systems in Africa? advantages are available to telecom customers as
an attractive financial alternative to traditional
Karim Kassam, VP, Corporate & Business solutions. Additionally, we have a unique value
Development, Ballard Power Systems: We’ve got proposition in markets where telecoms and
over 300 sites with fuel cell solutions installed ESCOs are looking for power beyond the 6-8
with Vodacom - we’ve probably got close to a hours per day that the grid might be available;
couple of MWs of fuel cells installed at sites in and our solutions are often used in disaster relief
South Africa today. We expect to be deploying scenarios where power is required for days at a
approximately 100 sites per year, and are time.
currently looking at some larger deployments
beyond South Africa over the next 12 months. Ballard’s fuel cell systems are cost competitive,
convenient and effective. Telecoms customers
We are currently working with Inala in South who need reliable power they can depend on
Ballard’s ElectraGenTM-ME installed by Vodacom in South Africa
Africa, and have a couple of additional African should consider fuel cells as an optimal solution

Outsourcing cell site energy
Urban Green Energy (UGE), particularly your
recent foray into telecoms.
UGE announces the Levelised Energy Agreement, a new business model for
the outsourcing of cell site energy Nick Blitterswyk, CEO, UGE: By early 2012, UGE
had become market leaders in distributed wind
Nick Blitterswyk grew up in a nature reserve, turbines, with experience in over 70 countries. We
where his parents were caretakers, so whilst started looking for new industrial markets where
working in the finance industry, he sought a our knowledge could be applied to solve new
new challenge with a focus on sustainability. challenges. We latched on to the telecoms market,
attracted by the critical need for sustainable energy
Nick founded Urban Green Energy (UGE) in
solutions at a large number of remote sites. With
2008, with an initial focus on distributed hybrid
reliability critical, we felt we could provide a more
energy solutions, growing UGE to become robust solution by bringing solar and wind together.
market leaders in small wind by 2012, which
they’ve used as a launching pad for a focus on UGE announced our telecoms solutions at Mobile
telecoms. World Congress 2012.
TowerXchange spoke to Nick and his colleague David Droz, AVP Telecoms, UGE: The growth of
David Droz, an engineer with experience of our telecoms department and capability happened
organically as a result of the first telecoms sites
liaising between engineering, sales and R&D.
installed within our partner network. When we
David is spearheading UGE’s entry into the
reviewed those projects, and the types of clients
Nick Blitterswyk and David Droz, UGE telecoms market.
they represented, we solidified our message and
developed a full-blown strategy for telecoms.
Keywords: Who’s Who, Energy, Installation, Investment, Opex Reduction, Risk, Business Model, Off-grid,
Unreliable Grid, ESCOs, Hybrid Power, Renewables, Solar, Wind, DG Runtime, Dimensioning, Infrastructure
Our first project of scale was with the Chinese Navy,
Sharing, Africa, China, TTCP, Urban Green Energy
which manages proprietary communication sites
along the coast of China and in the South China Sea.
Read this article to learn: Many of these sites were remote, off-grid and had
< How UGE conducts a resource assessment to specify a reliable solution combining solar, wind, been dependent on diesel, so they needed a reliable
batteries and DG energy solution that was a fusion of solar, wind and
< The flexibility and payback of investing in right-sized, scalable hybrid energy solutions batteries.
< A comparison of PPA and LEA business models
Early on it was clear there was a lot of interest
< How many cell sites does an investment of US $20m secure for a RESCO?
in this segment, even before we launched UGE

Telecoms. Alcatel-Lucent and Zain were among
early potential clients, having contacted us looking
for a solution, which led to us building out the
Fusion platform for telecoms and launching UGE
Telecoms.
TowerXchange: What are the typical use cases

for UGE technology at telecom sites?
David Droz, AVP Telecoms, UGE: Every site has its

own requirements in terms of kW, and we try to
be flexible to meet those requirements. That said,
the sweet spot for distributed renewables like ours
tends to be off-grid, smaller scale sites below 10kW,
that’s where we can deliver the fastest payback and
best IRR. The higher the cost per delivered litre of
diesel, the more renewables can save.
We offer customised solutions with solar, wind,

batteries and Diesel Generators (DG) all core parts
of the anatomy of our Fusion systems. How much
of each energy source is used is what gives us our
flexibility, and the energy mix is tailored according
to the resources available onsite. We conduct a
comprehensive resource assessment to determine
the sun and wind available and to define what the
UGE’s installation for Verizon
approach is going to be.
magnitude higher priority for our telecoms clients, good portion of the energy needs, providing just
Nick Blitterswyk, CEO, UGE: Let me give you an because if the power goes out, the revenue stops. as much of a headache to our client. In addition,
example. In the case of a client we’re hoping to for a new site the cost of connecting to the grid
close in Q3, there are 100 sites, each with slightly TowerXchange: Does UGE focus exclusively on can be really high. Solutions like UGE’s Levelised
different requirements. Within the portfolio, off-grid sites? Energy Agreement Program (LEAP) provide a better
we’ll look at every site, modeling the correlation way. Oftentimes you can provide a better energy
of wind and sun, and the impact of seasonal Nick Blitterswyk, CEO, UGE: No - we’ve deployed experience without needing to build that costly yet
considerations on energy logistics in order to come solutions at a number of sites with unreliable grid still unreliable link to the grid.
up with a reliable solution. Reliability is an order of as well. These sites were relying on diesel for a

companies are making a choice between grossly
300 oversizing the energy solution and taking a large
risk by sizing them closer to their expectation of
how the site will react without fully understanding
the risks. If you are only designing one site that can
Energy OPEX
200 make sense, but when managing a portfolio of sites

LEA
you are bound to have issues, and it only takes a
Current Engery Cost
small percentage of problem sites for it to become a
very big problem for the client. What our stochastic
100 model allows us to do is to really thoroughly
understand the risks of each and every site to
ensure that we can ensure uptime without the costs.
By understanding those risks we don’t know longer
0 5 10 need to balance conservatism and price.
Time
TowerXchange: How do you ensure scalability
TowerXchange: How do you conduct a resource understand the design feasibility and cost impact of for multiple tenants?
assessment? adding a little more solar or another wind turbine,
for example, if additional tenants are added to the David Droz, AVP Telecoms, UGE: One of the trends
David Droz, AVP Telecoms, UGE: Our resource site. we’ve been paying close attention to is the growth
“
assessment capabilities are one of our key
differentiators from RESCOS and other distributed TowerXchange: How do you minimise the cost
renewable energy providers. Assessment planning impact of deploying customised rather than
is all about understanding the topology of a standardised solutions?
network.
Nick Blitterswyk, CEO, UGE: Someone within Right now we believe companies are
One of the keys is that we can remotely evaluate our team recently coined the term “making making a choice between grossly
almost any site to a high enough degree to sign an
MOU with a client for deployment of the LEAP. We
draw upon the help of partners plus input data
from the tower operator to enable us to understand
the existing equipment onsite and to apply a
baseline to the energy model. We then use statistical
customisation scalable” and that is really what
we’ve been able to do. At the heart of it is using our
stochastic modeling techniques to drive the cost
down.
There’s a tradeoff between risk and conservatism -

oversizing the energy solution and
taking a large risk by sizing them
closer to their expectation of how
the site will react without fully
understanding the risks
“
and environmental analyses to model changing if you oversize by 50% or more because you’re not
requirements over a typical 10-year contract. sure how the site will behave, then you’re paying
So based on these models, we can iterate and a lot more for that system. Right now we believe

to ensure these aren’t a problem. For our clients for. Instead, what really matters for our customers
How UGE’s Levelised Energy this shouldn’t be any more difficult than if you are is uptime; i.e. reliability of the site.
Agreement Program (LEAP) asking your cellphone provider to add additional
accelerates the implementation of services to your contract. We will take care of the Our approach recognises that operators want to
multi-site deployments dirty work. stabilise opex costs - they don’t want to be exposed
to the risk and unpredictability of energy. So
UGE proposes a new model for the outsourcing of At sites where the mobile network operator is the we propose a model where we fix costs for each
cell site energy. key customer, they become the beneficiary and the portfolio of sites and start the outsourcing process.
savings get passed to them - adopting the LEA gives The client is able to give up the need to source and
UGE’s Levelised Energy Agreement (LEA) that operator a competitive edge. manage their energy, and we fix the price and
proposes a partnership between the customer Independent tower companies are leveling the assume the risk.
(in telecoms this would be an operator or tower playing field, with some towers having up to 5
company); the local installation and maintenance tenants, giving smaller operators the opportunity to This initial portfolio gives us the opportunity to
subcontractor; LEAf-1 their current US $20m benefit from renewables as well. quickly help our client and understand their energy
fund; and UGE themselves as the ESCO. supply issues. Using this on the ground experience
TowerXchange: What is an ‘Energy Service and our proprietary modeling tools, we fine-tune
“
First, UGE works with customers to determine Agreement’ and how does your ‘Levelised Energy
a levelised cost for a small network segment. Agreement’ differ from other ESCO business
Once the Levelised Energy Agreement (LEA) is in models?
place, they implement and maintain sites for the
entire contract period. The customer simply pays David Droz, AVP Telecoms, UGE: The Power
the monthly fee to have all energy needs taken Purchase Agreement (PPA) ESCO business model is The problem with the PPA structure
care of. Upon success of first network segment, now familiar to most people: the PPA defines a fixed is that it leaves money on the
expansion to greater number of sites will follow. cost per unit of energy, allowing the customer to table for energy that is generated,
escape the capex outlay required to first acquire a not sold, which ultimately limits
As traditional fuel costs continue to rise, energy new energy system. the savings that can be achieved.
savings will increase exponentially.
Furthermore, our clients’ revenue
of tower sharing. When designing for scalability,
you’ve got to consider the site as a whole. If the
tower owner installs our Fusion system under our
Levelised Energy Agreement (LEA), then what will
happen if they later want to add additional tenants
UGE wants to align our interests with our clients’,
delivering the maximum return at low cost. The
problem with the PPA structure is that it leaves
money on the table for energy that is generated, not
sold, which ultimately limits the savings that can be
achieved. Furthermore, our clients’ revenue doesn’t
doesn’t change based on how much
energy is consumed, so we feel the
“
fluctuating nature of a PPA doesn’t
fit very well with what our clients
are looking for
to the tower and increase the energy need? Our change based on how much energy is consumed,
technology platform allows for this additional build so we feel the fluctuating nature of a PPA doesn’t
out, and the LEA allows for adding capacity as well fit very well with what our clients are looking

TowerXchange: Tell us about installation and
$0.60 the integration of renewables with existing
generators and batteries.
Levelized Cost of Energy (in US$/kwh)
$0.50
David Droz, AVP Telecoms, UGE: Though it’s
in everyone’s best interest to leverage existing
$0.40 equipment where possible, we often have to replace
legacy equipment, either upfront or over time.
The installation of batteries has often not been
$0.30 well planned, so an audit is usually needed. We
Solar only get in to the sites, learn about them, then press
Low Wind + Solar
forward with the technology that will provide the
$0.20 best experience. Furthermore, we know space is a
constraint; our solution is often smaller and more
efficient than the legacy equipment we replace.
$0.10
Mid Wind + Solar Nick Blitterswyk, CEO, UGE: Our approach speeds
$0.00 up deployment. Tower operators know it’s a
0 20% 40% 60% 80% 100% headache and it’s expensive to deploy hybrid
Renewable Penetration (based on fossil fuel substitution) solutions. Under UGE’s Levelised Energy Agreement
the tower operator knows what they’ll pay each
the energy solutions to yield the optimal result in 50 or 500 sites, and of course we’d like to be talking month, they get a reliable service, and we’ll take
terms of reliability and cost, then expand the rollout about 4-figures of sites as well. ownership of the energy infrastructure, which
across a larger number of sites. Therefore the alleviates energy capex and opex concerns,
interests of the tower operator and the RESCO have In emerging markets, we’ll take over the whole enabling tower operators to focus on their core
been mutually aligned. supply chain, and simply charge the tower operator competencies.
an affordable monthly bill. This process takes time,
TowerXchange: Talk to us about the process of so we’re looking for long-term relationships. Once TowerXchange: How is UGE financed?
engaging with a new client - starting with that we have the initial agreement signed, we get started
initial 50-site proof of concept. with upgrading the energy infrastructure of the Nick Blitterswyk, CEO, UGE: In early August 2013,
sites, such as adding or enhancing distributed UGE announced our partnership with Tamra
Nick Blitterswyk, CEO, UGE: It’s not really a proof of renewable energy (DRE) products, power Tacoma Capital Partners (TTCP), raising a dedicated
concept, it’s just a way to more quickly help out the controllers, monitoring systems, et cetera. With the US $20 million fund for wind and solar DRE projects
tower operator to overcome problems maintaining multi-year energy agreement in place we’re able in the telecoms sector, particularly to finance our
a stable energy supply, such as supply chain issues, to leverage our financiers to invest in a reliable LEA program, and to speed up deployments. UGE
fluctuating diesel prices and theft. We could look at solution that will stand the test of time. is currently a private company and has had great

support from our investors that has allowed us to fully deployed in 2014. That’s a wide bracket correct. We have a project there that is currently in
grow into a leader in DRE. On the horizon is an IPO because the power requirement can vary so much the planning stage.
which will help facilitate our future expansion. from a small, remote, single tenant site in a cool
part of Scandinavia to a five tenant site in a very hot In this case we’re managing and installing
TowerXchange: How did you persuade your region of India where the active equipment and air equipment at a small number of pilot sites in
financiers that UGE could manage the execution conditioning load is much higher. Kenya to get data back and demonstrate the
risk that comes with doing business in emerging technology. This project came about before the LEA
markets? TowerXchange: What is UGE’s installed base was announced and we are currently working with
worldwide? the client to understand how it can be scaled into
Nick Blitterswyk, CEO, UGE: Over the past five years LEA.
we’ve grown to become the leading small wind Nick Blitterswyk, CEO, UGE: Across all sectors our
company in the world. This wouldn’t be possible solutions are deployed at over 1,500 sites. Telecoms One of the biggest challenges has been how to scale
without overcoming implementation challenges is one of our newer areas, accounting for less than from pilot to full rollout. Thanks to the LEA, tower
for our clients, and that is what we have excelled 100 sites, but the number is growing fast, and we operators don’t need to worry, UGE will manage the
at. With testimonials from major clients such as expect to eclipse 100 by a good margin this year. supply chain, and we’ll take the risk from day one.
GE, Hilton, BMW, Nissan, Toyota and Ford, and
growing experience with telco clients such as TowerXchange: I understand you have a TowerXchange: Finally, please sum up how you
Claro and Verizon, it was something our investors deployment planned in Kenya - what can you tell would differentiate UGE from other off-grid
were excited about. We may have an appetite for us about that? energy equipment providers?
working in regions without good credit ratings, but
David Droz, AVP Telecoms, UGE: Yes, that is David Droz, AVP Telecoms, UGE: We are the
“
our clients are credit worthy as they are typically
some of the largest, most successful customers in only RESCO that goes all the way upstream. UGE
those regions, and our credentials breed confidence manages the entire energy supply for each tower,
among our investors. from manufacturing wind turbines, to initial site
analysis and deployment, to ongoing management,
Ultimately we focus on good service, and on ensuring reliable and affordable energy supply
UGE manages the entire energy supply at minimum hassle to the tower owner. UGE
creating a company culture that makes us easy
to work with, and this has built upon itself as we
continue to grow and succeed in DRE.
TowerXchange: How many sites does US $20m get

you?
for each tower, from manufacturing
management, ensuring reliable and

“
wind turbines, to initial site analysis
and deployment, to ongoing
affordable energy supply at minimum

hassle to the tower owner
architects sites, we provide finance, and under the
same agreement we provide implementation. A
big part of this is having a robust overall system
encompassing different energy sources to provide
a reliable result. Siting small wind is a challenge.
UGE has the ability to remotely assess sites, and to
David Droz, AVP Telecoms, UGE: The cost of building get technology into the field. We have over 1,500
out each site can vary by region, but US$20m will hybrid wind and solar sites in the field. We see
cover 200-500 sites which we’re looking to have telecom as the ideal customer

Optimising the relationship
TowerXchange: Please introduce the topic of
your round table at the TowerXchange Meetup.
between towercos and hybrid David King, CEO, Flexenclosure: Flexenclosure

and our competitors come to the market with
systems suppliers
products to save energy OPEX, while the towerco
has expertise around site acquisition, tenancy sales
and improving site profitability. The question is
Integrating monitoring and management, access control, maintenance, asset, what form of contractual relationship enables both
inventory and HR management in an end to end managed service parties to create the most value?
Independent towercos are still a relatively new We’re looking forward to hosting a debate about
phenomenon in Africa, and their relationships with critical the best ways for hybrid energy system providers
hybrid energy partners are subject to a wide variety of and towercos to work together, how to structure
business models and contractual relationships. David King contracts and how to share responsibilities so as
and Ann Louise Johansson of Flexenclosure, one of Africa’s to leverage maximum savings from hybrid power
leading hybrid systems providers, will host a round systems.
table at the TowerXchange Meetup in which participants
We want to discuss the different business models
will seek to define business models and commercial
for governing the provision of hybrid energy, as
relationships that target the common enemy of site OPEX
well as exploring the services that towercos want
and at the same time create the maximum value for the
from their hybrid system provider. How will the
towercos and hybrid energy innovators.
need for services evolve over time as towercos
mature, as the scale of their deployments grow, as
Keywords: TowerXchange Meetup Preview, Energy, Capex,
the capacity of their sites and their tenancy ratios
Deal Structure, Opex Reduction, QoS, Business Model,
increase? Will they be looking for a larger range
ESCOs, Hybrid Power, RMS, Spare Parts, Infrastructure
of services, or do they see themselves becoming
Ann Louise Johansson, VP Strategy, Flexenclosure
Sharing, Africa, Flexenclosure
experts in managing hybrid systems?
Read this article to learn: TowerXchange: How is value created and shared
< How to structure contractual relationships between towercos and hybrid energy companies to create between towercos and hybrid energy providers?
maximum value
David King, CEO, Flexenclosure: Value is created
< How the relationship evolves as additional tenants and new equipment are added
by reducing the cost of running a site. The most
< The pros and cons of capex and zero-capex business models and options in the ‘middle ground’
substantial saving is achieved by transporting
< Post-sale installation, maintenance and support
and burning less diesel. The other key factor

“
The value created can be shared in different
ways, but for the sake of simplicity we can divide
business models in three main groups. At one
end of the spectrum is the pure purchase where
a hybrid power system is sold as a piece of
equipment to the towerco and at the other end
Zero-CAPEX, or ESCO, business of the spectrum is the Energy Service Company
models can get stuck because (ESCO) model where the towerco would purchase
power and not own the equipment. In between
the contract between the
parties gets complicated or
because neither party is able to
fund the necessary equipment
“ these extremes is a model based on the purchase of
equipment by the towerco but also including a KPI
or SLA to ensure it performs at the promised level.
TowerXchange: What are the pros and cons of

the business models currently being used?
David King, CEO, Flexenclosure: The pure purchase

type of agreement has not always been successful.
If results are disappointing it can sometimes be
is reliability - reducing or even eliminating difficult to identify and agree upon the problem.
the potential for faults that would result in Was under-performance of the system was to
downtime. Additional site visits are expensive and blame? Was it that peripheral equipment was sub-
compromising QoS and revenue generation for standard? Was the system configured correctly and
operators often incurs penalties under towercos’ integrated optimally with existing equipment? In
Service Level Agreements. such circumstances the purchaser can be left high
and dry, feeling the vendor has taken their money
The combination of these potential savings across a and run.
large network of sites amounts to huge amounts of
money. However it’s important to realise that these However, there are also challenges at the other end
savings are gained incrementally hour-by-hour, of the spectrum. Zero-CAPEX, or ESCO, business
day by day and site-by-site. It is not enough for a models can get stuck because the contract between
hybrid system to work well in some sites for some the parties gets complicated or because neither
of the time. Maximum value is created only if the party is able to fund the necessary equipment.
system is able to provide sustained performance
and reliability over a long time across an entire We are searching for the middle ground whereby
network of sites. the towerco and the hybrid system supplier

“
collaborate in such a way that they each focus services partner overcome these challenges and
on what they do best, there is a high degree of in addition we have the tools to enable remote
mutual trust and there are joint rewards. Ideas monitoring and management.
that we have discussed with towercos include
KPI driven models where Flexenclosure provides And that leads me to the third service component:
some “local optimisation services” to ensure that Support.
In our round table discussion
the equipment hits the KPIs, and if it does we
receive a performance bonus. We believe that this we’ll explore how to structure a As a hybrid system supplier we provide what
makes sense because we fundamentally know business model that will create we call RSSM (Remote Support and Software
our equipment better than our customers and our value for all stakeholders Maintenance) where we provide hotline
involvement, at least for a period of time, can lead support, access to system experts and software
and stand the test of time,
to greater savings.
We’re looking forward to hosting an open

discussion on towercos’ preferences regarding
business models and exploring the optimal value
creation scenarios for all parties. In addition
particularly as more tenants
are added and more kilowatts
are needed at each tower
“ maintenance. We enhance RSSM by providing
remote network audits and KPI reporting using our
eManager monitoring and management system.
With several hundred of our eSites deployed

across Africa, we have significant experience of
to exploring different models it will be equally the kinds of practical problems on site that can
important to discuss how the models would be limit performance and how best to overcome
implemented and whether they would need to them. And going back to David’s point about where
evolve as the towerco grows. results in fast and safe procedures. For example, the value comes from, we know that towercos
we measured the time it took for cutover at an will only get full benefit from our equipment if it
TowerXchange: Going back to your point upgrade installation in Nigeria last week and it was performs as expected each and every day at each
services, can you describe the various service only 7 minutes! The tool we use is eManager, which and every site. With this in mind we can provide
components for hybrid power systems, is our remote monitoring and management system. “local optimisation service” resources - a team
especially what you call “local optimisation focused on taking the output from eManager and
services” and who should do them? The Operations and Maintenance is usually using that data to maximise network-wide system
handled by the towerco and/or its managed performance.
Ann Louise Johansson, VP Strategy, Flexenclosure: services partner. The part we can play as an
Let’s first divide the service components in to equipment supplier is to provide technical and We can do this ourselves or through our local O&M
three groups: Installation and Commissioning, behavioural training to the services partner. For partners. The local optimisation service would
Operations and Maintenance, and Support. We example if there is an older genset, which a site produce and advise on eSite system audit reports,
are usually responsible for the Installation guard is often manually starting and stopping, as well as go to a site for hands-on performance
and Commissioning of the equipment. We do it then there is a risk that the site guard continues to improvement work when needed. Local services
ourselves or we send our experts to train our local interfere even after the hybrid system is in place. would also include support to the towerco’s first
partners on both the equipment and the tools. This We have the expertise and experience to help the line support as well as support for eManger

functionality and spare part inventory.
TowerXchange: How will these business models
eSite k10
and working relationships between towercos,
hybrid energy and managed services providers
need to evolve in the future?
Ann Louise Johansson, VP Strategy, Flexenclosure: Hybrid power for shared sites
In our round table discussion we’ll explore how to
structure a business model that will create value t Industry leading OPEX reduction
for all stakeholders and stand the test of time,
particularly as more tenants are added and more t Optimised single cabinet solution
kilowatts are needed at each tower. What happens
when tenants modernise, adding next generation t Full remote network management
active equipment? Will towercos change their
lease rates to incentivise tenants to use low energy
systems?
The key for a successful business model is to align

the interests and responsibilities between towercos,
hybrid energy and managed service providers so
that we all work together with the focus on what
is mutually most important. And that, of course,
will be to achieve the best-possible reduction of site
OPEX, and sustaining that reduction over time. For
example, assume it costs around $40,000 per year
to run a site in Africa. Introducing a hybrid power
system that reduces the cost by 80% would deliver
a saving of $32,000 per year per site, or $16,000,000
per year for a network of 500 sites. However, if over
time that performance only averaged 60% rather
than 80%, the lost value would be $20,000,000 over Providing new power to the telecom industry
five years! A very strong argument for “sustained”
performance to come front and centre in the www.flexenclosure.com/tower
working relationships between towercos, hybrid
energy and managed services providers

How to achieve high 9s
TowerXchange: Where do Enatel fit in the
telecoms infrastructure supply chain?
uptime at unreliable grid and Damien O’Regan, Global Sales Manager, Enatel
Energy: We are a New Zealand-based energy
off-grid cell sites equipment manufacturer. Enatel Energy designs

and manufactures a range of rectifiers, converters,
inverters, solar and wind chargers across multiple
Improving efficiency and extending the lifecycle of gensets and batteries
voltages for telecoms and industrial applications.
Rectifiers, converters, inverters, chargers and
Enatel is made up of three divisions. Enasolar
controllers are often critical to the efficient
manufacture a range of grid-tied solar inverters
operation and integration of multiple energy
whilst the Motive Power group supply a suite of
sources at unreliable grid and off-grid cell
modular, high efficiency fast chargers. These are
sites. One of the pioneers in this field is New
able to automatically identify the types of battery
Zealand developer and manufacturer Enatel, connected over powerline and apply the necessary
who you’ll find exhibiting at the TowerXchange voltage and charge profile. A long association with
Meetup on October 1 and 2. We caught up with leading battery manufacturers has been a crucial
Damien O’Regan to find out more about Enatel’s contributor in identifying industry challenges and
capabilities. driving charger innovation.
Keywords: Who’s Who, Energy, Opex Reduction, TowerXchange: What are your channels to
Batteries, Loading, QoS, Uptime, Off-grid, Unreliable market?
Grid, RoI, ESCOs, Hybrid Power, Renewables, Solar,
DG Runtime, Dimensioning, Outdoor Equipment, Damien O’Regan, Global Sales Manager, Enatel
Damien O’Regan, Global Sales Manager, Enatel Energy Rectifiers, Africa, Enatel Energy: We are headquartered in Christchurch,
New Zealand, with direct representation via an
operation in Croatia who manage parts of Europe;
Read this article to learn: with Enatel Shenzhen responsible for the domestic
< How Enatel have overcome the consolidation of backup power to deliver high 9s uptime Chinese market. However our primary business
< How to optimise the relationship between the genset and batteries to extend lifecycles model is one that identifies and supports highly
< The importance of modularity and scalability in meeting the different and changing capable local partners. The results and potential is
requirements of individual sites evident, for example in one instance I worked with
< Designing systems that are pre-wired for the integration of solar a distributer that grew from 3 to 200 staff, driven
primarily by the demand for DC power systems.

Strong relationships are crucial in tailoring
systems to meet specific requirements within local
environments - Enatel supplies power modules and
system building blocks for integration. Alternatively,
turnkey indoor and outdoor solutions are available.
Our designers and decision makers are only ever
one call away - we maintain very high levels of
engagement, support and training.
TowerXchange: What is the ‘sweet spot’ for

Enatel’s solutions - on-grid, unreliable grid, off-
grid? What’s the typical load?
Damien O’Regan, Global Sales Manager, Enatel

Energy: Our typical applications have historically
been grid connected standby power solutions where
operators demand the highest levels of uptime.
Demand and growth in emerging markets meant
less grid dependence. Providing energy solutions
for off-grid sites is a more recent challenge and
one that allows us to apply innovative solutions to
produce demonstrable and desired benefits based on volumes supplied, system generalisations Tower companies target uptimes between 2 to
and dollar per Watt erosions over past decades. 4 nines (99% to 99.99%) which represent site
Our portfolio can support any load requirements However, sufficient and sometimes significant downtimes of three days to one hour per year. For
from a 100W to 100s of kW’s, but in a hybrid context differentiation can still remain, particularly with partial grid and off-grid sites, delivering higher
we most frequently find ourselves supporting the emergence of niche applications and recognition nines goes beyond rectifier MTBF’s and design
1-3kW loads. Whilst it’s possible to go outside this, of particular capabilities. Commodification architectures. It must in combination also include
careful dimensioning and evaluation of economics risks ‘me-too’ products that fail to suitably meet capabilities that address application specific issues,
is necessary. industry principles and foundations. Systems may for example, a dependency in diesel generator
aesthetically and technically appear similar, but uptime, information insight and self-healing
TowerXchange: Has backup power become a that’s largely a consequence of industry drivers. elements. The towerco model is attractive because
commoditised market? Clear distinctions normally exist at nuts, bolts and of the focus on operators, where delivering QoS
deliverables level. We’ve refused to compromise - means that maximising site uptime is a natural
Damien O’Regan, Global Sales Manager, Enatel the bottom line is we must be able to support and caveat.
Energy: Within telco networks it’s a fair conclusion maintain high 9s availability.

“
Damien O’Regan, Global Sales Manager, Enatel Damien O’Regan, Global Sales Manager, Enatel
Energy: The vast majority of all off-grid BTS Energy: Constant speed AC diesel generators have
outages relate to generator issues. Almost total site a bad reputation. Not totally without justification
dependence can rest solely on a generator. For CDC given obvious environmental and economic
hybrids, fast recharge requirements can overload impacts, but it’s been unfairly compounded,
For CDC hybrids, fast recharge
and stall generators. The DC power community particularly by 24/7 operation. There are already
requirements can overload addresses this by limiting battery recharge well proven and significant improvements
and stall generators. The DC parameters, sequentially starting rectifiers and available. Fundamentally this is still about
power community addresses delaying aircon startups to avoid excessive inrush efficiently moving and storing energy. We know
this by limiting battery recharge
parameters, sequentially starting
rectifiers and delaying aircon
startups to avoid excessive inrush
currents
“ currents. The relationship between the generator
and cyclic batteries is critical - it necessitates tight
but adaptive management. Each element is in
continuous change within an environment that also
never remains constant.
a single litre of diesel can be converted into
approximately 3 kWh of energy and a review of
break specific fuel consumption data is a quick way
of digesting generator actualities. Our objective was
to develop a solution that was generator agnostic
and addresses real-world challenges.
Increased emphasis must be placed on power
conversion devices, particularly as their While tower operators should always be looking
performance and management capabilities are to reduce their dependence on diesel, present day
Logically, commoditised system limitations can instrumental in significantly extending lifetimes. realities mean diesel generators will be with us
struggle to meet OPEX drivers where the challenges Our SYNERGi solution automates and optimises for a while. With a reduction in loads and other
can be far more broad and complicated. Enatel energy generation. During installation, one needs influencing factors, alternative generation and
responded to commoditisation by diversifying to simply enter the generator nameplate kVA, push storage mediums will increasingly come in to play.
with an increased focus on partial grid and off- the start button to commence the commissioning
grid applications, viewing network expansion charge - no further human intervention required TowerXchange: Tower operators always want
and ruralification in emerging markets as an to revisit and retune. It automatically caters for to know that suppliers are proven in emerging
opportunity to directly leverage our core DNA. variables which may be due to tenants, altitude, market contexts - what is your installed base in
wear, weather and diesel quality. It will regularly emerging markets?
Blending and optimising multiple energy determine what parameters are required for
inputs requires the right product portfolio and optimum energy output and automatically adjust to Damien O’Regan, Global Sales Manager, Enatel
expertise, but this in association with our specific maximise them. Energy: We have many hundreds of thousands of
development efforts has yielded unique capabilities. products installed, with the majority in emerging
TowerXchange: Is there still a place in the long markets. Our power modules have very high levels
TowerXchange: How do you integrate renewable term planning of cell site energy for diesel of protection beyond those you’d typically find.
energy and CDC batteries without placing generators at off-grid cell sites?
excessive wear on the diesel generator? Enatel was established in 2002 by the same team

“
that founded Swichtec Power Systems, which was TowerXchange: What specific parameters do you
pioneering high frequency switch-mode power in need?
telecoms during the mid-80’s. Swichtec grew rapidly
and was supplying to the major Chinese operators Damien O’Regan, Global Sales Manager, Enatel
in 1990s. We opened a large wholly owned facility Energy: Average site load is most critical parameter
there in ‘96. Swichtec’s products were recognised and almost always assumed to be greater than
We see many sites
as being innovative, robust and there’s good reason actual. We look to utilise the existing generator
you still see them operating in many networks 20 dimensioned on the safe if possible for cost effectiveness and significant
side to fit within particular
years later. Swichtec became the DC business within
Eaton Corporation.
The original Swichtec management team and

founding head engineer Dennis Chapman, started
Enatel. All remain intimately involved.
capabilities. Such systems
then risk being more about
compromise, than optimise
“ operational potential.
We also need:
< Generator - size (kVA &/or kW rating). Is it
generator only? 1 or 2 generators?
< Battery preferences (if any)?
< Are there site noise curfew requirements?
Our initial hybrid systems were limited to mining < Air conditioning/cooling requirements (if any)?
and military contexts. Recent demand has < Will the site require solar or wind? Is there any
increased and as a consequence, we are engaged in likelihood of grid?
discussions regarding more significant projects. or as well on another. This can limit their successful < Fuel management?
deployment with time and cost complications. We < Alarm & communication requirements? Et
TowerXchange: Talk to us about how the see many sites dimensioned on the safe side to fit cetera...
challenge of hybrid dimensioning to meet the within particular capabilities. Such systems then
unique requirements of each site can be married risk being more about compromise, than optimise. TowerXchange: What’s the RoI in your systems?
up with the economic consideration where less
customisation usually means less cost. For us, addressing this variability was the catalyst in Damien O’Regan, Global Sales Manager, Enatel
developing a unique dynamic solution which allows Energy: That’s always an interesting question.
Damien O’Regan, Global Sales Manager, Enatel the expediting of multiple site deployments. Within a CDC environment we can deliver an eight
Energy: The application of hybrid power is month payback, with a better than 80% DG runtime
complicated, primarily due to the extensive The integration of renewable energy generally reduction and 70% diesel savings. However, whilst
variations within a site and across multiple sites. relies on a site survey or a very clear brief. Often these numbers are all possible and others make
This has limited the wide deployment of ‘silver we’re contacted by people saying we want SYNERGi. similar declarations, the results remain highly
bullet’ solutions. The modularity of building blocks takes much of dependent on existing configuration. Generally you
the customisation pain off the table. However, there can say between 12 and 24 months payback.
Inherent site variability means a hybrid conversion are some basic site information prerequisites which
that works at one site, won’t necessarily work at all make dimensioning job easier. We developed a tool to anticipate benefits, which

helps to reveal tangible effects in making slight Core to the architecture is a central 48v DC bus which generator inputs.
configuration adjustments to meet desired balances allows for seamless integration of new tenants. This
between CAPEX and OPEX. For example, it’s possible modularity intrinsically supports flexibility. TowerXchange: What do you see as the most
to see impacts of particular battery types, capacities exciting developments for the future of cell site
and strings. What influence on lifetimes will The DC power community continues to expand energy?
introduction of solar have in that location? What controller capabilities, where they nowadays
are the fuel savings and delivery implications? It are more representative of PLCs. They provide Damien O’Regan, Global Sales Manager, Enatel
provides insight into what all the idiosyncrasies intelligence in managing modules and peripheral site Energy: We naturally have huge interest in where
can equate to. Our primary objectives focussed on infrastructure, such as climate control. Increasingly energy storage innovation is heading. Bi-directional
delivering a solution that produces the lowest OPEX they are used for metering and load management. topologies also offer exciting possibilities. Various
and greatest uptime. Functions such as our PowerSave, place rectifiers factors will ensure incremental efficiency gains. Our
on standby depending on load, so regardless of rectifier efficiency exceeds 96.5% and solar/wind
TowerXchange: How do you design a solution to variations, the system always maximises conversion chargers approach 98% - we continue to explore
be scalable in the event that additional sharing efficiencies. advancements and have demonstrated higher
tenants or new technologies are added to a site, conversion efficiencies.
without oversizing and incurring inefficiencies? TowerXchange: How can you ensure your systems
are ready for the integration of renewables? The mobile network is largely about ‘the great
Damien O’Regan, Global Sales Manager, Enatel Outdoors’ and the inherent challenges this brings.
Energy: One of the luxuries of our business is its Damien O’Regan, Global Sales Manager, Enatel Packaging variations will elevate robustness and
inherent modularity and scalability. Energy: Enatel’s solar business introduced address cooling challenges, especially in combination
solarreadyhomes.net; where homes are pre-wired with hardened batteries.
The drivers and designs required to support multiple to allow for more cost effective migration to solar, at
tower tenants are not totally unique. Almost two such time home owners chose to do so. This has been Solar and wind will play increasing roles in
decades ago we saw similar requirements with successful and widely adopted. everything we do.
LLU (local loop unbundling) deployments - where
it was necessary to provision DC systems for the We applied that same model to telecoms, making Time is right for dialogue around ESCO models
inclusions of multiple operators within enclosures systems that are pre-wired for solar, so when you and we have some past experiences. The electricity
and exchanges. This modular architecture has been wish to integrate solar power, it’s an extremely price within a PPA will among many things be
part of telecoms power specifications since day one. simple process and the system will intelligently dependent on contract durations, risk skewing and
The best results are most often realised by simple blend in this renewable energy source. site characteristics. Mitigating the risk is crucial. A
approaches and none are simpler. Its success is PV spot price falling 70% over four years highlights
related to having the simplicity and scalability to In comparison, retrofitting solar is more potential exposures to volatilities.
meet periods of change and rapid growth while complicated, particularly if solar regulators are a
meeting QoS expectations. type which cannot be intelligently controlled for It’s important we remain cognizant of energy trends
optimal operation in combination with grid and and technology advancements; otherwise there

is a danger that we simply solve the problems of
yesterday and not those of tomorrow.
TowerXchange: To sum up, how do you

differentiate Enatel’s solutions from your
competitors’?
Damien O’Regan, Global Sales Manager, Enatel

Energy: We don’t outsource manufacturing -
design, development, and build are all done in
New Zealand. This allows us to be highly agile and
collaborative. Our business model is proven. We
have exceptional product reliability and unique
functional capabilities which are testament to
Enatel’s rapid ongoing growth.
We embarked on our hybrid path many years

ago and during 2010 interviewed a number of
key industry stakeholders, including the largest
operators and towercos. This reinforced our
committed and considered development efforts.
We believe SYNERGi represents a solution that is

unlike any other. It departs from traditional hybrids
Visit the new TowerXchange.com website
with the inclusion of a unique and advanced
generator control capability. < Access to the “Internet of People” in emerging market < A comprehensive archive of TowerXchange’s
towers – a trust web of over 2,700 decision makers in interviews and analyses, searchable by topic, country,
passive infrastructure company or grouped by category (e.g. interviews or
Loads vary due to multiple tenants and across
how to guides)
multiple sites. The SYNERGi solution is generator
< Independent analysis and commentaries on the
agnostic and dynamically adapts to maintain prospects for tower transactions in selected countries < The latest news and registration information about
maximum efficiencies ensuring extended lifetimes, TowerXchange’s Meetups.
maximized uptime and limits human intervention. < The latest industry emerging market tower industry
This capability in combination with the intelligent,
intuitive management of solar and wind harvesting
news – BEFORE it’s published in the TowerXchange
Journal, accessible 24/7 from desktop, tablet or mobile Tower Xchange
offers a highly compelling package

DIFFICULT SITUATIONS INSPIRE INGENIUS SOLUTIONS...
SYNERGi includes unique patented generator management with anti-stall and D2GO (Dynamic Diesel Generator Optimisation)
- Dynamically optimises any AC generator - Maximises site uptime & limits human intervention
- Allows rapid deployment to multiple sites - Self healing and automatically adapts to varying conditions
~ WORL
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How to cut the cost of
TowerXchange: Where does DAQS fit into the
air conditioning
Paul Crawford, General Manager, DAQS Europe: DAQS
Europe - ‘The Free Cooling Company’ is dedicated
to the design and manufacture of innovative, highly
Using free cooling systems can save up to 90% of energy costs at base stations energy efficient cooling solutions for telecom/IT
and data centres applications. Our designs are built upon Free Air
Cooling principles, incorporating highly efficient EC
fan technology.
As equipment is increasingly able
to operate at higher temperatures, Whether your application is a radio base station,
replacing mechanical cooling switch room or data centre; on or off grid, or high
with free cooling systems using ambient temperature application, we have a solution
ambient air to cool telecom shelters to meet your needs.
and data centres can significantly

All our product solutions are energy efficient, flexible,
reduce energy costs. To find out modular and moreover ‘futureproof’, interfacing with
more, TowerXchange spoke to Paul all industry standard communication protocols as
Crawford, General Manager at DAQS standard.
Europe.
TowerXchange: For our non-technical readers,
please introduce us to the concept of free cooling
Keywords: Who’s Who, Air systems and outdoor equipment, and please
Conditioning, Energy, Free Cooling explain how use of these systems is helping
System, RoI, Opex Reduction, Shelters, emerging market MNOs and towercos reduce
RMS, Data Centres, Africa, DAQS crippling energy opex at cell sites?
Paul Crawford, General Manager, DAQS Europe

Europe
Paul Crawford, General Manager, DAQS Europe: Our
free cooling systems use external ambient air to cool
Read this article to learn: telecom shelters and switch cabinets. The system
is interfaced with the existing air conditioning unit
< An introduction to how free cooling systems work
which uses a much greater amount of energy to cool
< The impact of widening climactic limits for equipment on the setpoint in base station shelters and in
the space. The system will always look to use the
data centres
ambient air to maintain the setpoint in the shelter and
< How free cooling systems can create energy reductions up to 90%, and payback in 18 months
when it can no longer do so, the unit switches over to

the air conditioning unit. Paul Crawford, General Manager, DAQS Europe: DAQS
Europe currently have live projects in Algeria, Egypt,
ETSI & ASHRAE recommendations in recent years Morocco, South Africa & Tunisia.
allow wider climatic limits for the operation of
electronic equipment. This has in turn allowed MNOs TowerXchange: I know it varies massively
to increase the setpoint in the shelter which means according to the requirements of a site, but on the
that external ambient air can be used to cool the ‘back of an envelope’, what is the typical capex on
shelter for longer periods of time. The use of free a per site basis to invest in energy efficient cooling
cooling can give the MNO up to 90% savings on opex systems, what magnitude of energy reduction can
costs. Maintenance costs of existing air conditioning be achieved, and what is the timeline to RoI?
equipment and the life of this equipment can be
extended. Paul Crawford, General Manager, DAQS Europe: The
costs of the system can vary significantly depending on
TowerXchange: How do you apply similar the control systems required.
principles to data centres?
We offer stand alone control which will modulate the
Paul Crawford, General Manager, DAQS Europe: fan speed dependent on the internal air temperature. conditions in the area, but in general payback would
50% of the total power consumed in an existing We also offer our FC10CS microprocessor control be under 18 months. Examples of energy reductions -
data centre can be attributed to cooling systems. system which offers a full control solution from Morocco up to 80%; Cape Town up to 90%.
In general, compressor cooling and inefficient fan basic alarm functionality right up to full remote
technologies are the primary users. As the data centre communication with the system. The energy reduction TowerXchange: To sum up, how would you
is operational 24/7/365, year on year, the use of free will vary dependent on the prevailing climatic
“
differentiate DAQS from your competitors?
cooling to maintain the temperature is a viable option.
Paul Crawford, General Manager, DAQS Europe:
Similar to telecoms, the server equipment can now live In general, in order to maximise the return on
at higher temperatures which allows for a wider range investment for this type of project, the two key
of temperature and humidity limits to be accepted. variables to consider when comparing different
We offer solutions that will use external ambient air
to cool the data centre when possible and switch to
air conditioning units thereafter. The use of this type
of system also adds N+1 redundancy as the heat can
continue to be removed from the data centre in the
event of an air conditioning failure.
the higher the free-cooling
capacity, the longer mechanical
cooling can remain idle and more
money is saved
“ solutions are capital cost and cooling capacity. The
positive impact of a lower capex is obvious, but cooling
performance is the most important limiting factor
that controls the achievable savings on any free-
cooling project. Simply put; the higher the free-cooling
capacity, the longer mechanical cooling can remain
idle and more money is saved. Our solutions deliver a
TowerXchange: What are DAQS’ credentials in greater cooling capacity than those of our competitors
emerging markets? whilst minimising energy usage

Special feature:
Energy storage
tradeoffs
How many days of autonomy does a deep cycle
battery provide when exposed to the rigors
of energy storage at remote cell sites located
off-grid or on unreliable grids, and in harsh
climactic conditions? What is the tradeoff
between initial capex and long life? How do the
different energy storage technologies compare
in terms of TCO, energy density and reliability
- which battery is best for which situation? And
which innovative advanced energy storage
solutions are proven on the front lines of
emerging market cell sites?
TowerXchange starts a new special feature

to compare lead-acid, lithium, sodium and
vanadium redox batteries, seeking answers
to these questions in discussion with battery
innovators from GILDEMEISTER, GE Energy
Storage and SAFT.
In part one of ‘Energy storage tradeoffs’:

117 Could vanadium redox be a game changer?
124 GE’s unique energy storage innovation
130 Li-ion technology telecom backup power
Image courtesy of GILDEMEISTER

Could vanadium redox
TowerXchange: Please introduce yourself and
GILDEMEISTER to our readers.
energy storage solutions be a Tom Tipple, Head of Emerging Markets,

GILDEMEISTER Energy Solutions: I recently
game changer? Joined GILDEMEISTER energy solutions as Head

of Emerging Markets. The GILDEMEISTER Group
is a leading German manufacturer of precision
Flow batteries ideally suited to meet the needs of larger sites off-grid and on milling and machine tools, as well as software and
unreliable grid energy solutions, all produced to exacting German
engineering standards.
When used as a diesel hybrid application Vanadium Redox
Energy Storage Systems can provide tremendous energy savings,
GILDEMEISTER made a strategic decision to
particularly at larger off-grid and poor, unreliable grid sites. The diversify into renewable energy with the acquisition
diesel hybrid concept of storing spare load from a diesel generator of a+f GmbH, manufacturers of sophisticated PV
is nothing new, however the charging and discharging properties Tracking systems for industrial use, and Cellstrom,
of different battery technologies allow some battery technologies one the pioneers of developing commercial
to deliver much greater efficiencies and therefore cost savings Vanadium Redox Flow Energy Storage Systems.
than others. In this interview, Tom Tipple of GILDEMEISTER
Energy Solutions introduces the CellCube Vanadium Redox Energy GILDEMEISTER Energy Solutions offers a full range
Storage System and shares his perspective on how to maximise of alternate energy solutions - PV, wind turbines
Tom Tipple, GILDEMEISTER Energy Solutions the efficiency of the diesel hybrid model. and energy storage. Its PV tracking capability is
a particular specialty. Any off grid site could be
Keywords: Who’s Who, Energy, Batteries, Vanadium Redox, Capex, Opex Reduction, Loading, Off-grid, 100% green energy, however space is usually the
Unreliable Grid, ESCOs, Hybrid Power, Solar, Retrofitting, DG Runtime, Dimensioning, Microgeneration, limiting factor. We can also model sites to determine
Cellstrom, GILDEMEISTER optimum alternative energy requirements, but
this is such a large subject it is perhaps better to
Read this article to learn: concentrate today on energy storage solutions.
< How to use energy storage solutions as a buffer to mop up excess energy from gensets
< USPs of Vanadium Redox flow battery technology: unlimited deep cycle, fast charge capability, charge One of the challenges has been that license
and discharge to any state of charge, 20-year battery life expectancy and low maintenance requirements requirements require operators to provide coverage
< Why GILDEMEISTER’s CellCube is ideally suited to higher-powered off grid sites, poor grid sites and in areas where the commercial returns on network
small data centers infrastructure were at best marginal - low ARPU
< The TCO and potential DG runtime savings from Vanadium Redox Storage Systems was compounded by the difficulty of installing,
securing and fuelling sites in remote locations.

With local currency depreciating against the dollar
and fuel prices steadily rising, the payback time on
remote installations increased, yet these network
extensions remain a licensing commitment.
So there is an increasingly urgent requirement

for telecom operators to reduce energy costs at
remote sites, and diesel hybrid solutions provide a
convenient first step in reducing operating costs by
capturing and utilising the spare generator power
available in most off grid sites. The problem has
always been the cost of replacing batteries which
are simply not designed to be deep cycled on a
regular basis. Vanadium Redox energy storage
solutions are specifically designed to offer unlimited
cycle capability to any state of charge. It has the
potential to be something of a disruptive technology
and a potential game-changer.
reduce diesel consumption. The optimum way of not just by the cost of the extra fuel being burned,
TowerXchange: At which sites are vanadium
doing it is to install large PV arrays, wind turbines but also by the high cost of remote fuel deliveries.
redox batteries such a good potential energy
and energy storage, but this requires a large capital
storage solution?
outlay, and a lot of space - neither of which are To run generators at their maximum, most efficient
readily available. load you would usually add a dummy load which
Tom Tipple, Head of Emerging Markets,
removes the low load coking issue, but wastes
GILDEMEISTER Energy Solutions: Vanadium redox
For off grid sites, most diesel generators are sized around 60% of the available power from the
energy storage systems work well in a number of
three to four times above the average site load generator. By harnessing this spare power in an
applications, specifically diesel hybrid solutions
as they have been engineered to accommodate energy storage device, you can reuse the wasted
for off grid sites that require unlimited deep cycle
unusual load spikes and network expansion. energy by simply cycling power to the site between
capability and poor grid sites suffering daily
However, this over-engineering is detrimental to the generator and the energy storage device.
outages, where the system essentially works as a
a generator’s asset life and results in poor fuel
UPS providing back up power for long periods until
efficiency. Running a generator at a sub optimal There are different energy storage options: lead-
grid power is restored.
load leads to cylinder coking, which reduces the acid, lithium, sodium sulfate and vanadium redox
asset lifespan of a generator from around four years batteries. The key performance criteria of the
Telecoms and tower operators are looking for
to around two and a half years. This is compounded different battery technologies are defined by; the
efficient solutions to reduce energy OPEX - i.e.

“
round trip efficiency of the system, the charge / to dimension the battery capacity at least two
discharge ratio of the battery (i.e. charge the battery times your actual capacity requirement. You also
as fast as possible by using ALL the available power need to the charge the battery according to the
from the generator), the usable capacity of the manufacturer’s guidelines, to its full capacity which
battery, the ability to charge to different states of is a slow process, and does NOT use the full power
charge and the number of deep cycles (i.e. expected available from the generator. This is the biggest
Vanadium redox batteries are
lifespan).
TowerXchange: Talk us through a comparison of

those different energy storage options.

performance handicap for lead-acid batteries - you
have to charge to full capacity or you damage them,
and as a result, you are not running the generator
at its maximum load.
The key to energy storage efficiency is to use as

good for over 20,000 cycles
without damage or degradation
- they’re designed for a 20-year
life expectancy
“
GILDEMEISTER Energy Solutions: First you need much of that excess power in the generator as
to consider which technology offers the best opex possible, and to charge your energy storage system
saving, then work out the total cost of ownership as fast as possible. As soon as charging begins to
(TCO) which would include the capital cost, annual slow down (as you approach the top of charge),
operation and maintenance cost, replacement cost, you want to be able to switch over from generator Vanadium redox batteries are good for over 20,000
generator asset life extension and miscellaneous power to battery power. So whenever the generator cycles without damage or degradation - they’re
cost saving such as temperature control. is on, it should be working at its maximum and designed for a 20-year life expectancy.
most efficient load. Vanadium Redox batteries allow
Realistically, TCO or return on investment should you to do that; you can be very flexible with both TowerXchange: Go easy on the chemistry Tom,
be taken over a minimum of 5 years, as this would charge and discharge criteria. As mentioned earlier, but how does it work?
tie in with ESCO service contracts. So which other energy storage solutions need a full 100%
energy storage technology can deliver the best charge otherwise you’ll get performance issues and Tom Tipple, Head of Emerging Markets,
performance? damage the battery - you don’t have to do that with GILDEMEISTER Energy Solutions: It’s a classic flow
vanadium redox. You can charge or discharge to battery principle. The vanadium redox battery is
Lead-acid batteries are relatively cheap, proven, any state of charge with absolutely no degradation a type of rechargeable flow battery that employs
and readily available. The problem is that to performance. So you can run your generator vanadium ions in different oxidation states to store
their chemistry is simply not designed for deep at full load to charge the vanadium redox battery chemical potential energy. The vanadium redox
cycling, so even though a manufacturer may and power the site, then as soon as the charging battery exploits the ability of vanadium to exist
claim a lifespan of 10-15 years, the reality is that starts to slow down (usually at around 85% state of in solution in four different oxidation states, and
replacement is typically required every 2 years. charge), you turn off the generator. This means the uses this property to make a battery that has just
You cannot use the full capacity of the battery to generator is working at full load when it is on. It is one electro-active element instead of two, so if the
cycle without damaging the battery, usually only working at its most efficient optimised state. electrolytes are accidentally mixed the battery
to the top 50% of its charge level, so you need suffers no permanent damage.

A vanadium redox battery consists of an assembly
of power cells in which the two electrolytes are
separated by a proton exchange membrane. Both
electrolytes are vanadium based, the electrolyte in
the positive half-cells contains VO2+ and VO2+ ions,
the electrolyte in the negative half-cells, V3+ and
V2+ ions.
When the vanadium battery is charged, the VO2+

ions in the positive half-cell are converted to VO2+
ions when electrons are removed from the positive
terminal of the battery. Similarly in the negative
half-cell, electrons are introduced converting the
V3+ ions into V2+. During discharge this process
is reversed and results in a typical open-circuit
voltage of 1.41 V.
Vanadium redox technology has been around for a

long time but it’s only been commercially available
for the last ten years. It may have taken a while
to get it right, but there are proven installations
worldwide now - we know it works, and it makes
economic sense on certain sites.
TowerXchange: What is your installed base in

emerging markets? TowerXchange: What’s the ‘sweet spot’ for 20 kW or 30kW option by simply plugging in more
CellCube deployments? power stacks, so this is a very interesting model for
Tom Tipple, Head of Emerging Markets, the towercos as they add more tenants and their site
GILDEMEISTER Energy Solutions: There have been Tom Tipple, Head of Emerging Markets, power budget increases.
over 150 installations of Vanadium Redox Battery GILDEMEISTER Energy Solutions: The CellCube 48
systems between 10kW and 30kW, many in hostile Series comes in 10kW, 20kW and 30kW options. In terms of capacity, our smallest system is 40 kWh,
environments (from deserts in Oman, to Saudi Most telecom sites need less than 5kW. So our then 70kWh, 100kWh and 130kWh. As it’s simply a
Arabia and India). The company is fairly new to current product is particularly suited to high- case of adding more electrolytes into tanks, you can
the telecoms market, so we are actively appointing powered sites, multi tenant sites and small data start with a capacity of 40 kWh and expand easily
partners in key markets. centers. A 10kW system can be easily upgraded to a up to 130kWh with exactly the same site footprint.

TowerXchange: Tell us about the potential site load, and design a system capable of capturing
use of vanadium redox batteries at sites with
Run time as much of that spare capacity as possible in the
unreliable grid connections. Cellcube works in fastest charge zone, 0-80% SoC most efficient manner. For instance, if I have a
< Generator 30KVA< Load 10kW< Cellcube 20kW/130kWh 25KVA generator providing power to a 5kW site, I
Tom Tipple, Head of Emerging Markets, theoretically have 20kW of spare, available power,
100
GILDEMEISTER Energy Solutions: Take Nigeria so I should size my storage system to capture as
as an example where the grid is particularly much of that spare power as possible (i.e. run the
80
unpredictable and outages are a daily occurrence. generator at full load); in this case a 20kW storage
A Vanadium Redox energy storage system is an system would provide the best cost saving and TCO
60
obvious solution for sites that need long autonomy return. For off grid sites, the storage power rating
during a power outage. A 130kWh system will is more important than its energy capacity, it just
40
provide 24 hours back up power for a 5kW site means you have more cycles per day for smaller
and can be fully charged in under 6 hours. So a capacities. Each site is different, you decide which
20
CellCube system can be used as the first backup - power / capacity system best suits that particular
when the grid goes off, the battery takes over, so site.
0
it’s acting as a UPS (Uninterrupted Power Supply). 0 20 40
With any other type of battery, you must charge the State of Charge % Generator Power % Where autonomy is important, such as on a poor
battery back to its full capacity to get the maximum grid site, you want the largest capacity possible to
Generator only runs at 100% load, always at maximum
lifespan, so if the grid goes off again when charging provide UPS back up. You don’t know how long the
efficiency 4 hour generator run time, 10 hour Redox
the battery and its only 80% charged, you will Battery. grid outage will be.
permanently damage the battery. Only vanadium Run time reduction = 71%
redox batteries’ performance is unaffected by TowerXchange: What kind of DG runtime savings
partial charge and discharge. I would personally herring as you need to match the energy storage can vanadium redox batteries deliver?
keep the generator as a second back-up in case the solution to the spare power available to get the best
grid is off an extended time, but in some cases, the commercial return. Tom Tipple, Head of Emerging Markets,
generator can be removed completely. GILDEMEISTER Energy Solutions: We have
TowerXchange: How should tower operators recently evaluated energy solutions for a number
TowerXchange: Is there any prospect of determine the right energy storage solution to of different site scenarios ranging from 1-20kW
developing a smaller vanadium redox battery meet their needs? load and different generator combinations. In
for the average BTS sites? some instances we can deliver up to 85% generator
Tom Tipple, Head of Emerging Markets, runtime saving. Of course this depends on the
Tom Tipple, Head of Emerging Markets, GILDEMEISTER Energy Solutions: I got it wrong for power difference between the generator and the
GILDEMEISTER Energy Solutions: Our design years trying to dimension battery size and capacity site load.
engineers are looking to develop a smaller 5kW to site load. It is more important to look at the spare
power solution, but this is a little bit of a red power available from the generator rather than the In practice, the lowest generator run time saving

we’ve had is 50% and the best is 88%. RoI is
dependent on the amount of spare generator
Diesel Hybrid Opex and TCO Savings
capacity - over-engineered sites with big
80
generators and relatively low load yield a very
quick break even. The beauty of Vanadium redox
storage solutions is that they transform the OPEX
inefficiencies of over-engineered sites into real
60
energy savings.
TowerXchange: High quality German engineering
USD saving
and bleeding edge energy storage innovations
don’t often come cheap, so tell us about the Total 40
Cost of Ownership of your solutions. 71%

48%
GILDEMEISTER Energy Solutions: For our largest 20 39%
“
32%
Opex OPzV Opex VRB TCO OPzV TCO VRB

Figures for a 10kW site with 30KVA generator, assuming 50% DoD for lead acid battery, 2000Ah, and a 20kW / 40kWh CellCube
The beauty of Vanadium
48 series system which would be 30kW / 130kWh, (10kW) the payback is closer to five years. And
redox storage solutions is you would be looking at a capital outlay of around that’s compared to lead-acid batteries - the payback
that they transform the
OPEX inefficiencies of over-
engineered sites into real
energy savings
“ €170k. This would be suitable for a multi tenant
site with an average site load of around 25kW. The
generator would probably be around 75KVA. For
comparison, an equivalent lead acid battery would
need to be at least 5400 Ah capacity rated at C5 and
be able to supply 30kW of continuous power for 4
cycle versus diesel is faster.
TowerXchange: Who are your main target clients

for such systems?

hours. GILDEMEISTER Energy Solutions: Towercos are
empowered to take a longer-term view of opex
The TCO for the CellCube overtakes lead acid savings, but we’ve seen forward thinking operators
batteries after three years. For smaller systems such as MTN and Vodafone embracing efficient

“
energy saving technology. system. As for security, everything is in a locked
steel container, and the ground wiring comes
Another potential target would be the ESCOs, but up from underneath the container, so nothing is
making the ESCO business model work is tough exposed.
on a site by site basis. Every site has different You’re looking for an energy
characteristics - pricing per kWh across 100 TowerXchange: Thanks Tom. To sum up, how
storage system that charges
different sites means you’re going to win some and would you differentiate GILDEMEISTER’s
as fast as possible using all
lose some. On a smaller scale site by site basis the
energy service model might work, but no tower
operator is going to accept the complexity of pricing
for individual sites - you have to offer a generic
tariff for a basket of sites, which means you have to
agree a price that works for both the ESCO and the
available power from the
generator; that’s the key to
reducing generator run time
and making the site as energy
efficient as possible
“ CellCube vanadium redox flow technology
batteries from other CDC batteries?

GILDEMEISTER Energy Solutions: Fast and flexible
charging performance is key when it comes to
operator. Eltek are pioneering much of the ESCO optimising energy efficiency in diesel hybrid
debate, but the operators and towercos have to take solutions. You’re looking for an energy storage
longer term view on investment in more efficient system that charges as fast as possible using all
technology. 24/7. And you can switch them off. Sodium Sulfate available power from the generator; that’s the key
batteries must be kept at on all the time to maintain to reducing generator run time and making the site
Alternatively you could install a self-contained their high operating temperatures, otherwise their as energy efficient as possible. TCO models differ,
microgrid, using a PV array and energy storage molten salts solidify which can be an expensive but it all comes down to DG runtime saving and the
solution. If you can feed 15-20 cell sites, you have a mistake. There are no safety issues with Vanadium round trip efficiency of the storage system.
very attractive business model, but you still have to redox, the charging and discharging criteria are
transmit the power from the microgrid to the sites, very robust, there is no chance of thermal runaway CellCube has the most flexible charge
so microgrids only work when everything is in close or explosion in the event of overcharging or short characteristics on any storage system specifically
proximity, which is harder in Africa because of the circuit as you have with certain Lithium batteries. developed for the telecoms industry, and is ideally
distances involved. It is recommended to replace the cell membranes suited to larger power off grid sites, or poor grid
every 10 years, which is a low cost service and in sites.
TowerXchange: Tell us about the maintenance the unlikely event that a membrane fails, there are
and security implications of using vanadium 10 cubes in each system providing redundancy so The life expectancy of a CellCube system is 20 years.
redox batteries. the battery will keep working. It has unlimited cycle capability to any state of
charge. No other storage technology can do that.
Tom Tipple, Head of Emerging Markets, Maintenance requirements are limited to an
GILDEMEISTER Energy Solutions: There’s nothing inspection - literally, opening the cabinet to check Visit GILDEMEISTER at booth 11 at the
to do! You don’t have to backwash vanadium redox it’s still there. In-built remote monitoring sensors TowerXchange Meetup:
batteries, or clean filters, they keep on running pick up and report performance status of the www.towerxchange.com/meetups/africa

GE’s unique energy TowerXchange: How does the technology and
capabilities of the Durathon sodium nickel
chloride battery differ from the lead acid
storage innovation and lithium based energy storage solutions

currently in use on most African cell sites?
Durathon’s long life, abuse tolerance and deep cycling an ideal fit for
emerging market telecoms Peter Kalish, Product Manager Telecom, GE
Energy Storage: Durathon Battery technology is
One of the most talked about advanced energy based on an advanced industrial battery design
equipment innovations in the past year has engineered to meet the growing need for safe,
been the Durathon battery from GE Energy reliable and high performance energy storage for
both stationary and motive applications.
Storage. TowerXchange wanted to understand
the unique capabilities of this potential game-
The electrochemical reaction within the
changing innovation, how the battery was
Durathon battery is quite unique. Each cell is a
performing in the field, and how widespread
sealed metal can, with no secondary chemical
deployment may be within the next year. reactions. Sodium ions travel back and forth
across a solid beta alumina electrolyte, which
Keywords: Who’s Who, Energy, Opex
creates stable performance over long life.
Reduction, Batteries, Air Conditioning, RoI,
ESCOs, Solar, DG runtime, Warehousing,
There is no self-discharge with Durathon
Rectifiers, Africa, Durathon, GE, GE Critical
batteries. Because all internal materials are solid
Power, GE Energy Storage
Ganesh Subramanian and Peter Kalish, GE Energy Storage Solutions at room temperature, they can stay in that state
for years with no impact on performance. This
Read this article to learn: characteristic is particularly useful when you
< Characteristics of Durathon: long life, abuse tolerance, battery management system, deep cycling and consider the inventory management challenges
energy density for emerging market cell site equipment.
< How Durathon performs in the field: 50% fuel savings
< Why adding energy storage capacity for additional tenants doesn’t have to mean the replacement of the
The Durathon battery has applications
across industries, including transportation,
battery bank
telecommunications and back-up power.
< From pilots to launch orders: Durathon batteries are being shipped all over the world and GE forecasts
GE initially began to explore alternative
Durathon will be deployed to 1,500-2,000 African cell sites by the end of 2014
battery technologies that could power large
< GE’s appetite to join forces with local banks and managed service providers to fund zero-capex
equipment such as locomotives, which meant
business models
it required deep cycles, and had to survive

temperature extremes as locomotives moved
from the warmest to the coldest regions on
Earth. It was also designed to be very safe as
in a transportation context you couldn’t afford
catastrophic failures like fires. Thanks to
improvements we have made to the cell design,
we’ve created a safer battery.
We noticed that the requirements necessary for

its application in transportation - long life, abuse
tolerance, deep cycling - were similar to those
necessary for telecoms and industries needing
stationary power. Currently, there is quite a bit of
demand in places close to the equator. To deploy
energy storage solutions close to the equator,
the solution has to be able to withstand high
temperatures and be robust enough to perform in
tough conditions.
Another characteristic of Durathon which makes

it suitable for deployment in Africa is that it’s
built in a single 48v block weighing 120kg. We
intentionally didn’t add integrated handling
features as a lot of tower operators in Africa have
a problem with pilferage. The weight of Durathon
doesn’t eliminate theft, but it’s a strong deterrent! operation. TowerXchange: How does Durathon’s initial
capex, battery lifetimes and Total Cost of
TowerXchange: Tell us about the battery But our electronics package does more than just Ownership (TCO) compare to alternate energy
management system built into Durathon. monitor and manage the module’s temperature. storage solutions?
As tower operators become more sophisticated
Peter Kalish, Product Manager Telecom, GE about site operations, they need a richer set of Peter Kalish, Product Manager Telecom, GE
Energy Storage: Because the Durathon battery information passed to their network monitoring Energy Storage: Being an advanced battery,
runs warm, we built in a battery management center. Durathon’s BMS can communicate most Durathon is more expensive than the prevalent
system (BMS) to manage each module’s of its operating data, in real time, to the NOC or lead acid batteries. However, lifecycle is key to
temperature, ensuring safe and consistent even via SMS to technicians. TCO, and Durathon has a significantly longer life -

“
up to 15 years in float, and up to 8 years in heavy more hours of discharge per battery.
cycling applications. Durathon also charges in
less than half the time of conventional lead-acid Ganesh Subramanian, Global Sales Leader,
batteries. Telecom, GE Energy Storage: That’s based on a
single 276Ah module. Of course you can place
As a result, payback can be achieved in less than older and new batteries will more batteries in parallel to achieve greater
24 months in Africa, with a longer post-payback
lifecycle in which to benefit from efficiencies
than with many other energy storage solutions.
TowerXchange: How does the energy density

of Durathon compare with alternate energy
work fine in parallel, which
means you don’t have to change
whole battery bank if you’re
upgrading the energy storage
capacity of a site
“ autonomy.
The way Durathon charges and discharges is

unique, such that older and new batteries will
work fine in parallel, which means you don’t
have to change whole battery bank if you’re
storage solutions? upgrading the energy storage capacity of a site.
This is key for towercos as they move from one to
Peter Kalish, Product Manager Telecom, GE two to three tenants - adding extra energy storage
Energy Storage: Energy density is one of the TowerXchange: How does Durathon compare capacity usually requires replacing the whole
reasons GE went for this particular technology. in performance in terms of charge/discharge battery bank.
We pack a lot of energy into a small package - for cycles? And what kind of autonomy can be
example, we can get 150-200Wh per litre from the achieved? TowerXchange: Is there a sweet spot in terms
battery, making Durathon an attractive option on of the energy load on a site most suitable for
rooftop sites where space is often limited. Peter Kalish, Product Manager Telecom, GE Durathon?
Energy Storage: We’ve done a lot of work
We may replace a 1000Ah lead acid battery with worldwide on this, achieving 50% fuel savings Peter Kalish, Product Manager Telecom, GE
our 276Ah module, which is the size of a carry- compared to generator-only operation. Energy Storage: Our best performance is
on suitcase. Which means those large battery 800w-2.4kw per battery.
banks on rooftops can be removed. For longer Durathon can typically achieve an 80% state of
autonomy, the site owner may need two units, charge in five hours. When we’re deep cycling, This is a hot battery - it runs at 300°C, although
connected in parallel, to get 10-12 hours of Durathon can repeatedly discharge almost fully the outside temperature is only about 10°C above
backup time. without damage. ambient. During discharge, the electrochemical
reaction is slightly exothermic, so at higher loads
Ganesh Subramanian, Global Sales Leader, For our 276Ah standard module we get around the battery temperature will rise. While not a
Telecom, GE Energy Storage: Comparing our 15kWh over a very flat discharge curve. Of safety issue, excessive temperature can reduce
sodium solution with a lead-acid battery bank, course runtime depends on load - for a fairly the life of the battery, so the battery management
Durathon would typically be one quarter of the typical telecom load of 1.5kW, we’ll have usable system monitors and protects the battery against
weight, and half the volume. capacity of 13.8-14kWh, which equates to nine or overheating.

TowerXchange: How is Durathon cooled to
adapt to some of the harsh environments in
Africa?
Peter Kalish, Product Manager Telecom,

GE Energy Storage: Other batteries need a
temperature controlled room, whereas all
Durathon needs is a waterproof container. There
is no need for air conditioning - the electronics
can handle temperatures up to 65°C, and the
internal cells have no trouble with temperature
extremes. So you can eliminate air conditioning
for batteries, and just use a DC fan or convective
cooling to keep other electronics inside the
cabinet within temperature limits.
TowerXchange: Can you give us an idea of the

number of cell sites currently using Durathon
batteries?
Ganesh Subramanian, Global Sales Leader,

Telecom, GE Energy Storage: We’re progressing
from pilots to launch orders in several key
markets such as Kenya, Zambia, Nigeria, Ghana,
Cells in a battery
Egypt and South Africa. As you know, telecoms
operators typically run small scale pilots initially good performance in the field, proof that the approaching saturation, there are a finite number
- we’re progressing over the next six to eight solution meets market needs. of green field site deployments, even in Africa.
months to larger orders in 100s and 200s of Some key countries still have significant numbers
units. By the end of 2014 we should see Durathon TowerXchange: How do you see the balance of new towers being deployed, such as Nigeria
deployed at 1,500-2,000 sites in Africa. of business opportunities between green and Kenya.
field new site rollouts versus upgrades to the
Peter Kalish, Product Manager Telecom, GE energy storage systems at existing sites? Sometimes the customer has the budget to invest
Energy Storage: We have deployed 20MWh across up-front in an advanced sodium or lithium based
all applications since GE Energy Storage started Ganesh Subramanian, Global Sales Leader, energy storage solutions with a high warranty. At
up in the middle of last year. We’ve had very Telecom, GE Energy Storage: With many markets other times the rollout might only have budget

develop ESCO offerings, but their capital is bound
up in their existing business and they struggle
to secure the funding to acquire advanced
renewable and energy storage technologies
which require higher up front capex but which
deliver better TCO over longer periods. GE would
be interested to use our financial horsepower
to work with local banks and managed service
providers to develop the ESCO proposition.
TowerXchange: What is the potential for GE

Energy Storage to join forces with the GE
Critical Power business?
Peter Kalish, Product Manager Telecom, GE

Energy Storage: GE acquired Lineage Power
several years ago. They’re now GE Critical Power,
one of the leading suppliers of electronics and
conversion equipment for telecom. We’re finding
that as GE Energy Storage matures as a business
there are increasing opportunities to marry GE
technologies into a single solution.
By combining energy storage with power

GE’s Durathon factory
conversion and power components we can
for low cost lead-acid solutions. Ganesh Subramanian, Global Sales Leader, develop compact energy storage solutions that
Telecom, GE Energy Storage: GE has a financial initially are finding a market in North America,
However, there are 150,000 cell sites in Africa, arm that is working on financing distributed but which will meet a global need eventually.
many running primarily on diesel generators. renewable energy in Africa. This would enable us to support not just BTS, but
So we see 90-95% of our market in Africa being BSCs and Switching Centres as well.
retrofits. Our ideal business model would be to support
local lenders and local managed service Ganesh Subramanian, Global Sales Leader,
TowerXchange: What role could GE play in a providers who have “boots on the ground” in Telecom, GE Energy Storage: Working with GE
zero capex, ESCO business model? Africa. Typically these local managed service Critical Power particularly enhances our offering
providers have the experience and expertise to to towercos. We can then offer everything the

“
towerco would need from a passive system Peter Kalish, Product Manager Telecom, GE
perspective, including Eco-Priority rectifiers that Energy Storage: GE has been in and out of
manage energy from grid and solar and wind the energy storage business for almost a
sources. With advanced batteries too, we have the century, starting with our involvement in early
makings of a market-changing offering. automotive batteries. GE offered consumer
batteries through the 1960’s, but exited that This is what GE does
TowerXchange: What are the implications business.
throughout its businesses:
of the release of Durathon for hybrid and
renewable energy solution developers? Have
you established any relationships with hybrid
energy solution developers?
Peter Kalish, Product Manager Telecom, GE

It was around the millennium when we identified
a growing need for industrial batteries. As
market leaders in locomotive production, we
were constantly seeking for ways to differentiate
ourselves and stay ahead of the competition. We
marrying best-in-class
technology with deep market
insights to bring innovation to
market, on a large scale
“
Energy Storage: We’ve been dipping our toe in the were seeking to “hybridise” locomotives, doing
hybrid market, working with solar-diesel hybrids the equivalent of what Prius did for cars. If,
in a few cases. Some of our pilots have yielded by hybridising a locomotive, you can save 10%
energy savings significantly better than 50%. of fuel consumed you have a game-changing
technology. The transportation market was very needed the same ruggedness, abuse tolerance,
Durathon works better with solar-diesel hot until the world economic markets crashed, deep cycling and long life as was needed in
compared to solar-only hybrid sites as ours is leading to a slowdown in locomotive sales, but by transportation. So we found there was demand
a warm battery and needs to stay warm. In that time we’d done a lot of the R&D to get into for advanced energy storage solutions in those
situations that require long periods of autonomy, energy storage. markets, which stimulated the company to invest
Durathon consumes its own power, reducing the in energy storage.
amount of autonomy available. We’ve found that We also purchased Beta R&D located near
Durathon works best at sites that need 20 hours Derby, UK - fourteen guys who had developed GE decided to bet big on batteries - investing
or less autonomy. If you’re looking for two days technology for commercial energy storage US$150 million to incubate and commercialise
of autonomy or are deploying solar arrays in since the late 1960’s - we saw them as having the new technology, effectively creating a startup
areas affected by frequent cloud cover, Durathon the expertise to commercialise the technology. within the company. The resulting business,
may not provide enough autonomy alone, you From late 2007 to 2009 we did a lot of work to GE Energy Storage, is focused on delivering
may need a diesel generator to ensure long term understand the potential of the technology, layout Durathon products, which offer a safe, reliable
availability. the business plan, and determine the markets we and cost effective option for a broad range
wanted to be in. of industries and uses. This is what GE does
TowerXchange: Finally, please tell us how GE’s throughout its businesses: marrying best-in-class
re-entry into the energy storage market came Stationary energy storage solutions in telecom technology with deep market insights to bring
about. backup power and industrial applications both innovation to market, on a large scale

Li-ion technology takes
TowerXchange: Please introduce Saft - where do
you fit in the telecoms infrastructure ecosystem?
telecom backup power to the When network stability is low, customers need a
solution with good cycling capabilities and good
next level chargeability. When network stability is high, they

need solutions with float charging capability and
a long service life. Saft offers backup solutions for
New generation Li-ion batteries minimise installation size and weight while
periods from 30 seconds to over one day.
optimising backup performance and TCO
TowerXchange: What is your installed base and
Effective, reliable backup power is essential for the
experience in emerging markets, particularly
telecommunications industry to maintain continuity of
Africa?
service as networks need to evolve to meet the demands of
the ‘always on’ world that now includes cloud computing Joel Brunarie, Telecom Business Development
and high bandwidth data streaming, et cetera. Saft has used Manager, Saft: Saft has extensive experiences and
its extensive experience in the global telecoms industry to references in various African countries such as
develop a broad portfolio of advanced, specialised battery Algeria, Nigeria, Cóte d’Ivoire, Senegal and Gabon.
solutions suitable for wireless or wireline installations,
In Nigeria, Saft’s specialised Sunica.plus nickel-
indoor or outdoor, on-grid or standalone, in very hot or cold
based batteries provide the energy storage at the
climates, urban settings or remote hard-to-access locations.
heart of Eltek Valere’s innovative hybrid telecom
power systems, combining batteries with diesel
Keywords: Who’s Who, Energy, Batteries, QoS, On-grid, Off-grid,
Joel Brunarie, Telecom Business generators, that have been rolled out to 80 mobile
Development Manager, Saft Unreliable grid, Hybrid power, DG runtime, RMS, Africa, Saft
telecom sites across the country. These co-location
sites are provided for Nigeria’s wireless operators
Read this article to learn: on a fully managed leased basis, and QoS (Quality
< The critical issues you need to consider in order to select the right battery to meet the specific of Service) is absolutely vital in this competitive
requirements of a cell site market.
< TCO of Li-ion versus LA batteries
< The advantages of Li-ion batteries in terms of energy density, and the implications for the installation TowerXchange: Batteries have an unfair
reputation as a commoditised piece of
footprint at a cell site
equipment, the selection of which rarely attracts
< Meeting differing backup power requirements at on-grid, unreliable grid and off-grid BTS and at larger
the attention of C-level decision makers - why
CO, DPCO and MSC sites
should CTOs, CFOs and CEOs take an interest in

which batteries are used at their cell sites? which largely determines the battery sizing. capability to deliver high performance, reliability
< The specific application, will the battery be and long life in a range of demanding backup
Joel Brunarie, Telecom Business Development subjected to frequent daily cycling with deep applications. Saft has now created a second
Manager, Saft: Mobile network operators place a discharges or will it mainly be on floating duty? generation of Li-ion batteries, known as Evolion®
major emphasis on ensuring consistent quality of < The environmental temperature, as extremely that capitalises on this experience by offering tailor
subscriber service. The design and management cold conditions can adversely affect made outside plant hardened modules to meet the
of backup power systems to maintain continuity of performance, while elevated temperatures specific demands of the telecom industry, where
power, in the event of an interruption to the main reduce the expected life. In some cases, batteries they offer possibilities to create compact, safe and
site power supply, is therefore a vital issue. When might need to be housed in a specially heated or reliable backup power systems.
the main power supply fails, the backup battery cooled enclosure.
must be able to perform. My view is therefore that < The energy density (in terms of both volume Thanks to its zero maintenance, sealed for life
battery selection is a critical element in the success and weight), can the battery provide the required design, and long calendar and cycle life, Evolion®
of the entire installation. performance from the limited installation offers an optimised TCO (Total Cost of Ownership).
So while it can be tempting to regard the battery footprint available at telecom sites? So while a lead-acid battery might last only up to
as a simple commodity item, to be purchased at < Maintenance requirements - how often will the five years, Evolion® is designed to have the same
the lowest initial cost, I urge the C-suite to look battery need servicing or replacement? At life expectancy as the telecom equipment it serves.
at the bigger picture. A cheap battery can in fact remote locations, the cost of frequent service This means a long float life of 20 years at +20°C
prove very expensive if it fails to function when visits can exceed the battery purchase cost. and more than 10 years at +40°C and a high cycle
required, causing loss of subscriber revenues. In life of 4,300 cycles at 80% DOD (depth of discharge)
contrast, an initially more expensive specialised TowerXchange: How does the TCO of Saft’s and 8,200 cycles at 50% DOD. Furthermore, unlike
telecoms battery that delivers in terms of reliability, solutions compare to alternatives? lead-acid batteries that are prone to ‘sudden-death’
performance and life will provide a superior return failures, the life and performance of a Li-ion battery
on investment (RoI) as well as peace of mind. Joel Brunarie, Telecom Business Development is always predictable.
Manager, Saft: Currently, the majority of telecom
TowerXchange: What are the critical backup power systems are supported by lead-acid TowerXchange: What are the operational
considerations in selecting battery backup power (LA) batteries. While these batteries have operated advantages of Saft Li-ion batteries?
solutions? successfully in the field for many decades, they have
some drawbacks, including concerns regarding Joel Brunarie, Telecom Business Development
Joel Brunarie, Telecom Business Development reduced life expectancy at higher temperatures, Manager, Saft: The operational advantages of the
Manager, Saft: There are a number of critical shorter cycling life, the necessity to over-size the Evolion® modules include:
considerations that determine the correct choice of capacity, low reliability, high weight and low energy < High energy density (in terms of both volume
battery for a telecoms installation: density. and weight), delivering high performance
from the limited installation footprint available
< The duration of backup time required, i.e. the In recent years, lithium-ion (Li-ion) battery at telecom sites
capacity needed to support the duty profile, technology has demonstrated its exceptional < High performance in cycling and floating

applications
< Safe, reliable operation at extreme temperatures
(-40°C to +75°C) that eliminates the need for
on site heating or air conditioning
< Easy battery management, since the state of
charge (SOC) of a Li-ion battery is directly
related to its cell voltage. This also offers the
potential for intelligent remote supervision
The main advantage of Li-ion technology for

telecom networks is that it enables more energy
per weight and volume to be stored. For example,
a typical VRLA (valve regulated lead-acid) telecom
battery will store 80-95 Wh/l and 35 Wh/kg. In
comparison, the Evolion® module stores over 170
Wh/l and 139 Wh/kg, making it effectively two times
smaller and four times lighter.
TowerXchange: What are the typical applications

in which your batteries are used?
Joel Brunarie, Telecom Business Development

Manager, Saft: Currently, Evolion® has four main
applications: an uncontrolled environment, the battery has to remote monitoring.
survive temperature ranges from -20°C to +55°C
Outdoor in wire-line/wireless applications and large variations in relative humidity - Evolion® On average, the power required in such
with a high quality grid - including outdoor can work across this temperature range without applications is in a range of 800 W up to a few kW
cabinet applications such as BTS (Base Transceiver affecting performance and life. and the runtimes range from 2 to 8 hours.
Stations), BSC (Base Station Controllers), MSC
(Mobile Switching Centres) and access node These sites can be remote and hard to access. In CO, MSC and DPCO applications - covering all
terminals for FTTx. this case, reducing expenses associated with types of indoor sites with high power requirements
transportation, installation and maintenance is (from above 10 kW to several hundreds of kW)
At these sites, the battery has to support around a key objective when considering new solutions. that are connected to electrical grids with good or
10 to 30 power outages per year ranging from a Evolion® is ‘maintenance free’, with state of health poor quality, and including Central Offices (CO),
few seconds to hundreds of minutes. Since it is in and state of charge information available through the more recent architecture of Distributed Power

required is between 1 to 4 kW and runtimes range (photovoltaic) panels and/or wind turbines could
from 4 to 12 hours. allow further reductions in operating costs (OPEX)
while also increasing environmental benefits.
And again the site is often remote and hard to
access. In this case, reducing expenses associated For hybrid sites, Evolion® offers high cycling
with transportation, installation and maintenance is capability and long life at deep discharge; fast
necessary. The Evolion® module offers high cycling recharging; resistance to high temperatures; high
capability at different depths of discharge and in charge efficiency and ultimately low OPEX.
particular at high temperature.
TowerXchange: Finally, please sum up how you
Standalone, off-grid hybrid applications - As fuel differentiate Saft from your competitors?
costs continue to rise, operators are now seeking
Central Offices (DPCO), where the power is locally more cost-effective ways of powering their sites. Joel Brunarie, Telecom Business Development
distributed and decentralised and MSC (Mobile Manager, Saft: The important difference with Saft
Switching Centers). The battery is installed inside A particularly attractive solution is to use a hybrid is that we don’t focus on simply selling batteries.
under a controlled environment, where the average system that integrates a variable speed diesel We aim to design, develop, manufacture and supply
temperature is typically between +15°C to +25°C. DC generator (genset) with a deep cycling Li-ion cost-effective energy storage solutions that will
module. This offers an extremely energy efficient ensure high performance and reliability throughout
The Li-ion module is an interesting alternative alternative to using an AC generator operating 24/7, the life of the telecom installation. We are able to do
when compared with the conventional VRLA since the generator simultaneously charges the this through our vast experience in the industrial
battery primarily because its low weight and low battery and powers the site load. standby power business combined with a wide
volume can minimise floor loading and the need for choice of battery chemistries - including nickel-
building structural enhancements. When the battery is fully charged the generator based and Li-ion technologies - provided within
shuts down and the battery takes over as the dedicated telecom battery designs and supported by
Outdoor and inside wireless applications with primary source of power. The genset runtime is the strength of our global organisation.
no reliable electrical grid - typical of countries reduced to typically 4 hours per day, with major
where the grid is unreliable. In contrast to the two savings in fuel consumption - usually up to 74 All this means that we are able to offer a
previous applications, the battery can be discharged percent compared with a standard genset. It also comprehensive approach that takes telecom
several times a day and with a variable depth of reduces CO2 emissions while increasing refuelling customers from a blank sheet of paper through
discharge. and service intervals. creating the ideal specification for their application,
designing and manufacturing the battery system,
Again, the battery is usually installed in an A complete hybrid system of this type can be on site installation and commissioning and then
uncontrolled environment and must survive a packaged in a compact and light ‘energy container’ ensuring the system always functions at peak
temperature range of -20°C to +55°C and large to offer a turnkey solution that is quick and easy performance by providing through-life service
variations in relative humidity. The average power to install in remote locations. The addition of PV support

Special Feature:
Rooftops, masts
and towers
In this new special feature, TowerXchange speaks
to the engineers and innovators charged with
responsibility for modernising Africa’s rooftops,
masts and towers. We also look at site design
innovations that improve the economics of rural
network extensions.
The special feature opens with a Q&A with

Leadcom’s Chief Engineer, providing an
introduction to the design and strengthening of
Africa’s many single tenant towers as infrastructure
sharing becomes more prevalent. We speak to
Craig Barker, President and CEO of Geostrut, whose
carbon fibre towers have recently entered mass
production and provide a light-weight, easy to
install, long-life alternative to steel towers. Finally,
we look at the application of MER Telecom’s Light
Sites to rural network extensions in Ghana.
In part one of our rooftops, masts and

towers special feature:
135 Designing and strengthening towers for
multiple tenants
139 Geostrut’s carbon fibre towers
143 Bridging the digital divide in Ghana

Why 1+1 doesn’t always equal 2 TowerXchange: Please tell us about the typical
current state of Africa’s single tenant towers
when designing and strengthening - were towers designed to accommodate

additional tenants? Is there typically spare
towers for multiple tenants Equivalent Projected Area (EPA) for additional
tenants?
Leadcom explain how the load capacity of a tower is measured and upgraded
Hagai Admor, Chief Engineer, Leadcom Integrated
Solutions: In the early stages of the massive rollouts
TowerXchange wanted a basic explanation
in Africa, providers could sell their own ready-made
of tower design and tower strengthening for
product towers as there was lack of standardisation.
readers who aren’t structural engineers, and Telecom operators defined their towers in three
our friends at Leadcom kindly obliged! Chief basic levels:
Engineer Hagai Admor’s interview takes us
from Africa’s early over- and under-designed < Standard - which was normally EIA/TIA 222
towers, with some towers overloaded < Wind speed - which normally was 40m/s
and some with spare capacity, to today’s < xx m² wind load in the top 10m
innovative tower designs that minimise initial
capex but which are upgradeable for multiple Based on these categories, customers defined and
tenants. standardised their early towers.
Keywords: How to Guide, Managed Services, A few years ago, a new version of the American
standard was issued, better definitions for the
Steelwork, Construction, Installation, Urban vs
different environmental factors were considered
Rural, Co-locations, Capacity Enhancements,
such as exposure area, importance factor,
Loading, Foundations, Decommissioning, Masts &
topographic factor, et cetera. This was given to the
Hagai Admor, Leadcom
Towers, Infrastructure Sharing, Africa, Leadcom
operators to be more accurate in their definitions
and specifications.
Read this article to learn:
< Why many of Africa’s towers are under- or over-designed The fact is that most of the “old” towers, sold based
< How the capacity of a tower was previously measured, and how it’s now measured based on exact loading on “old” standards, were not a product of new,
< How much capacity is required to add a second and a third tenant cutting edge analysis and engineering tools, so they
< How service can be maintained when you can no longer avoid replacing rusty old towers weren’t accurately tailored to suit environmental
< How to control the capital outlay on new towers while retaining the flexibility to upgrade for multiple tenants factors. As a result, some older towers are under-
designed and overloaded, while some of them are

over-designed and can accommodate additional
loading.
Another factor which has a major impact on the

tower load is that with the technology evolution
over the years (2G, 3G, PDH, SDH etc), operators
added equipment to the towers without considering
the designed capacity, and we have found some
tower members that were over loaded by 300-400%!
With today’s know-how, we define towers based

on exact loading. Unless it is requested by the
customer, we do not mention the equivalent
projected area at the top, but express the load as a
function of the specific equipment to be mounted,
such as antenna models, mounting apparatus,
microwave dishes, coaxial feeders, vertical cable
ladder, et cetera.
Expressing the tower capacity as a number of

square meters at the top of the tower normally
confuses the customer since some include feeders
and some don’t, some express the load in a
distributed method and some in a concentrated tower has capacity for. To explain it simply, if a 1kg force is acting on a
method, and some of the suppliers apply the load on 40m pole, then the moment is 40kgm, but if the
one leg in one azimuth and some not. TowerXchange: How much additional capacity is same 1kg is acting on a 35m level (5m below top),
required to add a second or third tenant? Does the moment is 35kgm. Equipment for an additional
With the size of recent equipment, we rarely find the load capacity increase proportionally; do you tenant placed at the top of a 40m tower creates a
that additional tenants cannot be added due to real need double the capacity for a second tenant and greater moment, a greater load, than if the same
estate issues and we believe that there is always a three times the capacity for a third? equipment was placed 5m below the top. So you see
solution that can be found. adding additional tenants do not mean the load on
Hagai Admor, Chief Engineer, Leadcom Integrated the tower rises proportionally.
Where once people would have talked about Solutions: No, 1 + 1 does not always equal 2 when it
towers having 5, 10 or 15 square meters of capacity, comes to adding tenants to towers! Sometimes 1 + 1 Additional equipment for the current or for a new
towercos talk mainly about the number of tenants a equals 1.5 and in other cases 1 + 1 equals 2.5! tenant placed on top of a tower versus placing

interference. If the tower is already occupied, site-specific design can now, in the re-analysis
available slots may not be the optimum, and the stage, show very poor results due to topographic/
space may or may not meet their needs. Some environmental conditions and lose most of their
compromises may be possible with the location of potential vacant capacity to increased wind loads.
RF equipment, but if they want to transmit data
from one site to another via microwave then they TowerXchange: What ultimately defines the load
need line of site, so if that’s not possible it tends to capacity of a tower?
be a go / no go question.
TowerXchange: How does the tower location Solutions: The capacity of the tower is defined by
affect capacity, for example in areas with high the most stressed element/member in the tower. It
wind speeds? can be a leg in the bottom section, but also can be
diagonal or horizontal in the middle section.
Solutions: The new American standard takes In some cases when analysing towers that have
into account environmental factors that directly lower quality bolts, we find that the most stressed
influence tower performance. Which means that a element/member is a bolt and the capacity of the
tower in a sheltered urban area can be loaded more entire tower is defined according to that.
than the same tower if be located in open terrain.
In addition, towers that are located on the top of a The way you modulate the tower is of critical
hill can carry lower loads then towers located in flat importance, on one hand the geometry and the
open terrain. screening of the members, and the other hand
modulating the antennas and accessories in their
Moreover the latest version of the standard exact location (height and azimuth and tower
takes into account the level of importance of the leg).
the same equipment 5m below the top will create structures, such as whether the tower is a switch
different moments and forces along the tower. site. In addition to that, better and more accurate TowerXchange: What are the most common
Loading the tower at different heights causes data on wind speed in different regions can be approaches to strengthening a tower structure?
change in its static forces distribution. The tower identified today, not like in the past where a whole
body changes and members with initial utilisation country was considered with one or maximum two Hagai Admor, Chief Engineer, Leadcom Integrated
might see additional force which will lead to wind zones. The effects of site-specific topographic Solutions: The engagement of a turnkey provider
exceeding the member’s capacity. parameters introduced in the latest version of the can bring the towerco the most cost effective
“EIA/TIA-222 G” version have a significant influence solution for strengthening towers. We are not
Operators want their equipment at a specific height on the tower’s actual capacity. Towers that were bringing just a pure engineering approach, but we
to optimise coverage and capacity and to minimise procured and erected during early rollouts without also add aspects from manufacturing, delivery lead-

“
time, shipment and implementation which results The consequences of replacement not only involve
in a tailor made solution for each specific site. We the direct cost of the new tower but also lack of land
believe that our vast field experience with great (as normally the new tower will be tied in to the
engineering knowledge is a great benefit to the existing one), implementation of a new foundation,
towerco.
The approach of replacing a leg with a bigger/

thicker leg is not necessarily the right solution.
Replacing a leg often seems to be a straight-forward,
feasible solution, but the risks entailed can cause
and telecom equipment cut-over which introduces
a risk to the continuation of site performance.
During the past three years I remember very few
sites that we recommended dismantling. In most
of the cases the reason was that our survey team
found heavy rust on the structure. Replacement of
we devised a methodology to
make a tower easily upgradable
to accommodate extra tenants
without interrupting service
“
the tower to collapse if poorly executed. Our towers because of inability to strengthen is rarely
approach to tower strengthening is on a case by necessary and this is appreciated by our customers.
case basis since each tower has it own parameters One of the key elements that lead us when we
in terms of loading, wind speed, and environmental design tower strengthening is the continuity of the strengthened an enormous amount of towers. From
factors. It is like a heart surgery where you have a site’s service; this is why we prefer to add members that experience, we devised a methodology to make
procedure that you go by but each patient is unique. rather than replace members. a tower easily upgradable to accommodate extra
tenants without interrupting service.
A more sophisticated or innovative approach to In some cases, specifically rooftop sites with
tower strengthening, other than simply replacing severely deteriorated or poorly designed towers If the customer doesn’t want to deploy the capex
failed members with stronger ones, is to change that must be replaced, we solve the downtime/ to rollout towers with multi-tenant capacity now,
the static design and model geometry of the tower service continuity problems by erecting a light- we can install a light model tower with geometry
by installing additional members in a way that will duty (very small footprint) temporary tower just capable of adding or upgrading members to
better distribute the various forces within the tower outside the compound parcel, which is used during achieve higher loading on the same tower without
main members, thus reducing the overstress in the construction period of the replacement rooftop downtime or changes to the foundation. We install
some of those members. tower, and then dismantled and reused on another an MM Series tower (with medium load capacity)
location. with the potential to upgrade to an MMTP site
TowerXchange: When would you recommend (suitable for harsh topographic environments, or
replacing rather than upgrading a tower? How TowerXchange: Finally, how can tower operators additional tenants) using 100% the same geometry
can service be maintained during transition to a control capital outlay on new towers whilst but with the addition of certain members to achieve
replacement tower? still having the flexibility to upgrade them for a 30-40% higher load on the tower.
multiple tenants?
Hagai Admor, Chief Engineer, Leadcom Integrated Clients seeking this kind of flexibility in capex
Solutions: We do everything in our engineering Hagai Admor, Chief Engineer, Leadcom Integrated deployment and upgradeable capacity are usually
capabilities to find solutions to keep the same tower Solutions: Since 2010 Leadcom has undertaken towercos, who can use these towers to mitigate the
and to reinforce it rather than replacing the tower. thousands of structural analysis surveys and risk that it will take time to sell additional tenancies

Carbon fibre towers now mass TowerXchange: Please introduce Geostrut to our
readers.
produced and offer many advantages Craig Barker, Co-founder, President and CEO,
Geostrut: Geostrut is an eight year old company -
over steel our carbon fibre towers are our third generation
technology, launched four and a half years ago. The
Light weight, easy installation towers ideal for remote cell sites and rooftops prototypes we’ve built have been well received, and
in emerging markets we’ve refined the product and completed our mass
production process just three weeks ago. We’re
Geostrut will be unveiling an exciting new innovation in ready to introduce a product design that is ready to
tower manufacturing at the TowerXchange Meetup. It’s been compete head to head with steel towers on price.
a long time coming, but carbon fibre towers are finally being
mass produced - it’s been worth the wait! Carbon fibre towers Some people wonder how we compete with steel
have some genuine advantages over steel in terms of weight, tower manufacturers, a mature, 75-100 year old
industry, when we’re this new innovation that has
ease of installation and corrosion resistance. TowerXchange
only just gone into mass production. One of the keys
caught up with President and CEO Craig Barker to learn about
to commercialising carbon fibre towers has been
the potential use cases of carbon fibre towers in emerging
that suppliers of our raw materials have identified
markets.
that our company has the potential to be the largest
consumer of carbon fibre in the world. Thus, we are
Keywords: Who’s Who, TowerXchange Meetup Preview,
the recipient of very aggressive raw material pricing.
Passive Equipment, Construction, Installation, Capex, Co-
Other applications of carbon fibre, even aviation,
locations, Carbon Fibre, Loading, Health & Safety, Foundations,
use a limited amount of raw material. But because
Logistics, Rooftops, Masts & Towers, Africa, Americas (North),
we’re talking about infrastructure, the potential of
Craig Barker, Geostrut Americas (South), Asia, Geostrut
the market is huge. Add to this a nearly automated
manufacturing process and the price of our product
Read this article to learn: has become very competitive.
< How carbon fibre towers are able to compete on price and wind load capacity with steel: lattice carbon
fibre structures with a carbon fibre skin We’re going to concentrate on the wireless market
< The advantages of carbon fibre towers over steel: weight, ease of installation and long life first, then consider moving into power transmission,
< Why carbon fibre structures are particularly strong alternatives for rooftops automotive, aerospace and construction applications
< How many tenants can be accommodated on a carbon fibre tower? in the future. But we’re not moving on from wireless
until we’re immersed in the business and we’ve
< The current costs of a Geostrut’s towers and their plans to manufacture in Africa
mastered the mass production for this industry.

Geostrut identified wireless as our core target
market five years ago. The tensile and compressive
strength of carbon fibre is well known, but used
alone it would have needed so much raw material
as to not be competitively priced against steel.
Carbon fibre also didn’t have the bending and impact
strength to withstand the wind loading required
in telecoms. So we developed a lattice carbon fibre
inner structure with a carbon fibre skin, and this
combination requires less raw material while giving
us independently certified bending strength to meet
the wind load capacity requirements of telecoms.
We have secured a couple of patents and have a

couple more pending.
We conducted a study with a major US aerospace

company who were working with thin walled, pure
carbon fibre tubes on a top secret project. They
compared the strength of their pure carbon fibre
tubes with our lattice Geostrut structures that use
“
directionalised carbon fibre enabling us to use weight of an equivalent steel monopole. This is
half as much raw material, and found our lattices critical for logistics. Geostrut’s tapered monopole
structures equal to or stronger and approximately sections can be taken apart and nested, so a 26m
half the weight of the pure carbon fibre tubes. tapered monopole is nested into the base section and
the entire carbon structure weighs just 249kg. We
Carbon fibre towers weigh
about one tenth of the
weight of an equivalent steel
monopole. This is critical for
logistics
“ TowerXchange: What are the advantages of
carbon fibre over steel towers?
Craig Barker, Co-founder, President and CEO,

Geostrut: Carbon fibre towers have three main
advantages over steel towers: weight, ease of
can get eighteen such towers in a 40ft container! We
are targeting opening regionalised manufacturing
facilties, but for now we can manufacture and ship
towers from the US to Africa for just US$250-300 per
tower delivery costs.
installation and resistance to corrosion. Of course inland logistics are even more critical
given the under-developed state of the road network
Carbon fibre towers weigh about one tenth of the in many African countries. Moving light-weight

a crane means there is no need to pass heavy
transportation and installation vehicles along under-
developed road networks.
Another advantage of carbon fibre is that it doesn’t

corrode like steel, which means less maintenance
visits and opex. We also have an additive to our resin
that prevents damage by UV rays.
We quote the same 50 year lifetime as steel but

frankly we’re being conservative - industry
standards attribute other carbon fibre structures
quote significantly longer lifespans. The biggest
difference in lifespan occurs in corrosive
environments such as marine, coastline and island
locations, where a steel tower can rust in less than
20 years. A carbon fibre tower is good for at least 50
years, regardless of the application.
Geostrut towers come out black, but can be painted

for high visibility applications such as near airports.
TowerXchange: What are the typical use-cases of

Geostrut’s carbon fibre towers?
Geostrut towers to remote locations is a lot easier requirements are much lower than for steel towers Craig Barker, Co-founder, President and CEO,
than moving the equivalent steel structures. Our - you can assemble a Geostrut tower and erect it at Geostrut: While we have designs up to 50m, to date
towers can be moved on a regular truck trailer, and a new site in half a day. The bottom section is bolted we’ve manufactured up to 32m.
individual sections of our towers can even be moved to the base (there may be a need for a small change
around by hand by a couple of guys - on most of our to the foundation, but it incurs little cost), then the We compete primarily with steel monopoles. I
designs, the heaviest section is 100kg. So not only foundation can be hinged, so you can assemble it on remember visiting India two and a half years ago
are carbon fibres inexpensive to move, they are also the ground and complete erection by hand swinging when they had just rolled out hundreds of thousands
safer to handle because they’re not as heavy. it up with ropes. This is important because heavy of three and four legged towers for 3G. At that time
equipment to install structures is often not readily nobody wanted to talk about monopoles - now the
Let’s talk about ease of installation. Labour available in emerging markets, and not needing market is maturing toward 4G, no-one talks about

“
towers over 40m, and monopoles are preferred! Africa, a specialist in rural telecoms, to determine
the size of the opportunity. They want to reduce
Carbon fibre has a real advantage on rooftops overall site infrastructure costs in the rural market
because of its light weight. I remember speaking and see real benefit in the ability to quickly and cost-
to a tower executive in India who said he couldn’t effectively deploy light-weight towers in areas that
put steel structures on rooftops in certain sectors of are difficult to access. We are aiming to build a local
the country because the buildings weren’t strong
Especially in emerging markets manufacturing capability in Africa by the middle of
enough. Especially in emerging markets where where building construction 2014, in collaboration with the entrepreneur backing
building construction standards aren’t the same, a standards aren’t the same, a lot Connect Africa.
lot more rooftop sites are going to be viable options
using 6-18m carbon fibre rooftop towers than if you
use steel.
TowerXchange: What’s the maximum capacity of

more rooftop sites are going to
be viable options using 6-18m
carbon fibre rooftop towers than
if you use steel
“ TowerXchange: I appreciate Geostrut have only
just moved from prototypes to mass production,
but do you have any towers already installed that
prove their performance in the field?
your carbon fibre towers in terms of tenants?
Craig Barker, Co-founder, President and CEO,
Craig Barker, Co-founder, President and CEO, Geostrut: We currently have two towers standing in
Geostrut: We’ve built structures with capacity for the Brazil, three in Australia, and one delivered but not
antennas with microwave dishes of three tenants, are very competitive to steel in the US and Europe. yet standing in India. The oldest structure went up
and good for wind speeds up to 55m/s, which is We can beat the price of equivalent steel monopoles two years ago with no reported problems since.
sufficient for the majority of multi-tenant towers. in some regions, it’s tougher to beat the price of steel
structures in other regions that source inexpensive We only finished the mass production process three
TowerXchange: Tell us about the capital outlay steel locally. weeks ago, but we already have orders for our first
required on a per tower basis. 36 towers - including nine going to Malaysia to an
TowerXchange: What is Geostrut’s interest in the operator who is excited to be the early adopter in
Craig Barker, Co-founder, President and African market? that part of the world! Plus we have two towers
CEO, Geostrut: It depends where the tower is leaving our facility by air freight to Africa - including
manufactured and local labour costs, and we’re Craig Barker, Co-founder, President and CEO, a two section tower to be assembled outside the
determined to develop localised manufacturing Geostrut: Geostrut are going to be making our TowerXchange Meetup!
bases. African debut at the TowerXchange Meetup next
month. Visit Geostrut at booth #16 at the TowerXchange
Based on manufacture in our current US factory, we Meetup and see their innovative carbon fibre tower
can produce a 24m tower for US$8-10,000 and 30m Africa is experiencing very rapid growth in telecoms installed in the courtyard outside! To register for the
for $11-13,000 depending on loading and wind speed. and the opportunities for us on the continent are Meetup, visit:
Which means both manufacturing costs and shipping very exciting. We have partnered with Connect www.towerxchange.com/meetups/africa

Bridging the digital divide
TowerXchange: Please introduce us to GIFEC
and to your work with them to accelerate rural
connectivity in Ghana.
in Ghana Arie Ben-Dayan, Marketing & Sales Director, MER

Telecom: Ghana Investment Fund for Electronic
How to make rural communications commercially viable
Communication (GIFEC) is a nonprofit agency of
the Ghanaian Government, funded by a levy on
How can innovations in passive and active mobile network operators revenues, to facilitate the
infrastructure and energy equipment support provision of universal access to electronic services to
the objectives of governments and universal unserved and underserved communities in Ghana.
access funds to accelerate the extension of rural
connectivity? TowerXchange took a closer look at GIFEC aims to connect isolated villages, typically
with 1,000 to 2,000 citizens, that may generate too
GIFEC and at what they have achieved working
low ARPU to be profitable for MNOs to connect under
with MER Telecom to connect remote villages their standard business model. To communicate,
in Ghana. We also look at how similar business people in these villages had to walk 10 to 15 km to get
models, technology and operational solutions sufficient cellular coverage to enable a phone call.
could be applied to support similar universal
GIFEC issued a tender and MER Telecom’s Light
access initiatives.
BTS Site concept was chosen based on the following
criteria: proven experience in rural projects,
Keywords: TowerXchange Meetup Preview, coverage capability and low power consumption
Managed Services, Energy, O&M, Capex, Universal (150W). We have initially deployed ten Light Sites
Access, Opex Reduction, Batteries, Urban vs Rural, with renewable energy solutions. Light Site includes
Off-Grid, Hybrid Power, Solar, Africa, Ghana, a 35m triangular tower, micro BTS, Wi-Fi and VSAT
GIFEC, MER Telecom equipment, plus a hybrid energy solution.
Arie Ben-Dayan, Marketing & Sales Director, MER Telecom
TowerXchange: Tell us more about the energy

Read this article to learn: solution designed for these sites.
< How GIFEC use Light Sites to connect isolated, off-grid villages
< Using solar panels, CDC batteries and a low energy consumption BTS to reduce opex to 10-20% of the
Arie Ben-Dayan, Marketing & Sales Director, MER
Telecom: Energy source design is very important
costs to maintain a regular site
at these sites and, as all the villages were off-grid,
< The cost-effectiveness of VSAT connectivity in rural areas
power supply for the site was sourced from a hybrid
< How VAS like mobile money drive rural connectivity and how rural connectivity drives mobile money!
energy system that combines a solar array of ten

solar panels of 280W each and a set of deep cycle with MER Telecom as the integrator. MER Telecom
batteries. The challenge was to provide a total produce the passive equipment. Since we do not
solution at minimum capex and opex, by avoiding manufacture active equipment, we selected the right
the need for a diesel generator onsite which would suppliers in order to meet the client’s specs and
have meant a different and costly business model. requirements.
Also, a solar-only solution avoids fuel supply and fuel
theft problems. TowerXchange: Under what business model are
these sites going to be brought to market? Is it a
TowerXchange: Talk to us about the active revenue share?
equipment you installed.
Arie Ben-Dayan, Marketing & Sales Director, MER
Arie Ben-Dayan, Marketing & Sales Director, MER Telecom: It’s not a revenue share model in this case.
Telecom: The challenge in selecting the right active GIFEC has purchased the turnkey sites. When the
equipment was to balance the need to provide site build will be completed, they will be available to Light Site: a 35m triangular tower, micro BTS,
Wi-Fi and VSAT, plus hybrid energy solution
enough capacity and coverage in order to serve the connect to different operators. In this case I believe
entire village and at the same time, ensure that the GIFEC is working with Vodafone Ghana, but it could site can be upgraded.
BTS had the minimum possible energy consumption be other operators as well or even become a multiple
(in order not to require a diesel generator on operators site. Either way, GIFEC remains the owner It is important to mention that there is no technical
site) and ensure a minimum satellite bandwidth of the site. limitation in creating a multi-tenant site. The only
consumption in order to avoid a high opex due to
limitation is the business aspect. If the village is large
wide bandwidth consumption. TowerXchange: Could the business model be enough, a multi-tenant site can be a viable solution.
extended to have multiple tenants sharing the
MER Telecom came up with a turnkey solution sites? TowerXchange: How does the capex and opex of a
including active equipment, in this case a micro
Light Site compare to normal cell sites?
BTS with 2 TRX capacity (expandable on demand). Arie Ben-Dayan, Marketing & Sales Director, MER
This was much cheaper and more efficient than a Telecom: We can install the antennas of several Arie Ben-Dayan, Marketing & Sales Director, MER
standard BTS. The solution we delivered, which we different operators on these towers, but in a village Telecom: With Light Sites, maintenance costs are a
call Light Site, had enough capacity and bandwidth that might have 500 users, hosting three tenants few hundred dollars per month - probably 10-20%
to support the needs of the villages around, yet the would make the site much more expensive in terms of the opex of a regular site which might require
power consumption and bandwidth required were of additional capacity and energy, so GIFEC have US$2,000-2,500 per month and even more when
very low. If we’d used a normal BTS then we would deployed different sites with different operators. considering the difficulties of maintaining rural sites
have needed more solar panels, and the site would GIFEC would evaluate whether there was a case to separated by large distances.
have become bigger and more expensive. deploy more capex to add additional solar panels or
batteries and support additional tenants. The loading I can’t be too specific about the capex because we’re
Based on a specification from GIFEC, the equipment starts very low with just one tenant using standard under NDA, but the BTS and passive infrastructure
was purchased from a variety of different suppliers, size antennas and small microwave dishes - every costs less than half of the cost of a regular site.

TowerXchange: Tell us about the energy footprint Arie Ben-Dayan, Marketing & Sales Director, MER have also expressed their interest in our Light Site
of the Light Site solution Telecom: We are seeking to promote and duplicate solution, although it’s a challenge to make the energy
this model beyond Ghana with other organisations solution viable from a capex and opex point of view
Arie Ben-Dayan, Marketing & Sales Director, MER with the same objective as GIFEC in order to develop when capacity for two to three tenants per site is
Telecom: Light Site consumes 150-200W in total, and facilitate digital access. needed.
compared to a regular BTS which might require
1,500W. This is the reason why a diesel generator is Universal Access Funds exist to close the digital Mobile Network Operators are offering an increasing
not needed with Light Site. divide, and building cell sites in remote villages number of VAS platforms that bridge urban and
shows the population that they are acting on rural areas, such as mobile education and mobile
Each Light Site can be tailored to local power their behalf to extend communications to the money. How can an urban migrant send money
requirements by varying the size of the PV array underserved. home if there are no connections in the rural village
according to hours of available sunlight, with a where his family lives? ARPU from voice services is
battery bank of a different size according to the In the past many Universal Access Funds have been not enough to make many rural network extensions
number of hours of autonomy required. focused more on fibre optic connectivity in urban viable, so it is imperative to develop additional value
areas, however now their attention is focused more added services like mobile money, which in turn
The hybrid systems are monitored by MER Telecom’s and more on rural areas hence projects like GIFEC’s drive the need to cover the maximum population
own smart controller which monitors and activates are becoming more viable and common. - it’s a cycle. Innovative solutions like Light Site
the solar and battery energy sources according to the can transform the economics of rural network
availability of each. We selected a deep cycle battery TowerXchange: Who is the “client” when seeking extensions that otherwise might be loss-making.
with a lifetime longer than standard batteries to opportunities on similar projects?
reduce battery related maintenance costs. It’s time to reconsider the deployment of full size
Arie Ben-Dayan, Marketing & Sales Director, MER cell sites in rural areas. For example hundreds of the
TowerXchange: Talk to us about the merits of Telecom: The client in most cases is the Universal regular cell sites deployed in rural Congo have been
VSAT in rural areas. Access Funds which are administered by Ministry of switched off because of the monthly maintenance
Telecommunication and/or the regulator. cost which is higher than the monthly revenue
Arie Ben-Dayan, Marketing & Sales Director, MER generated. Using a small, lightweight site which
Telecom: We chose the VSAT connectivity solution TowerXchange: Are there other use cases for incurs minimum capex and opex might offer lower
due to its cost effectiveness in rural areas where Light Site? capcity and bandwidth, but at least there is available
there is no line of sight to any existing cellular service.
operator. The VSAT requires very low bandwidth and Arie Ben-Dayan, Marketing & Sales Director, MER
as such reduces each site’s monthly opex. Telecom: Yes, we are definitely targeting also the
MNOs which are aiming to provide coverage and MER Telecom will be hosting a round table at the
TowerXchange: What is the appetite for other services access to the rural population at minimum TowerXchange Meetup on “How to make rural
Universal Access Funds to engage in similar cost. Light Site is used by MNOs as well as Universal communications commercially viable”. For more
projects? Access Funds, which in some cases are driven by information, visit:
license obligations to extend coverage. Towercos www.towerxchange.com/meetups/africa

Matrix of African tower design, manufacture, installation and managed service providers
TowerXchange profiles the capabilities, experience and footprint of proven suppliers
Approx # of
Company Capabilities Founded Staff
towers in Africa
Permits & Managed Acquire &
Tower Design Tower Manu Install TOC
licenses Services lease
ADNA 1,500+ 1999 in Egypt 270
Footprint: Currently only operate in Egypt and supply products for Africa and Middle East. Before ADNA had been in Algeria and Sudan
Sample clients: Vodafone Egypt, Mobinil, Etisalat, Huawei, Orange, Omnia and Omantel
Company profile: TowerXchange issue four, pages 83-86 or visit www.towerxchange.com/african-towerco-investor-may-be-required-as-tower-sharing-moves-to-phase-two-in-egypt/

Approx # of
towers in Africa
Alkan CIT TP Interested 12,000 1998 1,100+
Footprint: Algeria, Burkina Faso, Chad, Egypt, Ghana, Kenya, Libya, Mali, Niger, Senegal, Sierra Leone, Sudan, Tanzania (plus Bahrain, Iraq, Oman, Qatar, Saudi Arabia and UAE in the Middle East)
Sample clients: Airtel, Comium, Etisalat, Expresso, FT-Orange, Libyana, MobiNil, MTN, Safaricom, Sotelma, Sudatel, Vodacom, Vodafone, Wataniya, Yu, Zain and Zantel, Telecom Egypt,
Vodafone Egypt, Etisalat Misr
Company profile: TowerXchange issue four, pages 79-82 or visit www.towerxchange.com/alkans-end-to-end-services-leveraging-tower-sharing-plans-in-egypt
Approx # of
towers in Africa
1,500 worldwide,
Camusat TP 5,000 1940s
843 in Africa
African Footprint: Botswana, Cameroon, Central African Republic, Congo Brazzaville, DRC, Egypt, Guinea Bissau, Guinea Conakry, Ivory Coast, Kenya, Madagascar, Mali,
Mauritius, Morocco, Niger, Senegal, Uganda
Sample clients: France Telecom/Orange, Digicell, Eaton Towers, Bulgaria Telecom, ZTE, Telma, TowerCo of Madagascar
Company profile: TowerXchange issue two, pages 96-99 or visit www.towerxchange.com/whatever-it-takes-to-get-it-done
Approx # of
towers in Africa
EEC Group 20,000 1977 1,500
Footprint: Algeria, Egypt, Mali, Senegal, South Sudan and Sudan

Sample clients: Vodafone Egypt, MobiNil, Etisalat, Comium, Djezzy, Sudatel, Sotelma MaliTel, Alcatel, Ericsson, Huawei, ZTE
Company profile: TowerXchange issue three, pages 60-62 or visit www.towerxchange.com/eec-group-positioning-itself-to-partner-towercos-in-egypt
TP = Through Partners

Approx # of
towers in Africa
Ganges India India 1991, in towers 500 perminant,
TP 4,000
Internationale TP Africa TP Africa since 2004 1,000 contractors
Footprint: “Many countries in Africa”
Sample clients: Airtel, Vodafone, Huawei (MTN), Orange, Helios, Eaton, Ramboll and Safaricom directly and through partners
Company profile: TowerXchange issue one, pages 32-33 or visit www.towerxchange.com/driving-down-the-cost-of-multi-tenant-towers
Approx # of
towers in Africa
GSM TP TP TP 100 2012 8
Footprint: Burkina Faso, Uganda

Sample clients: Telecel, Benin Telecom, STE
Company profile: TowerXchange issue three, pages 85-89 or visit www.towerxchange.com/how-to-design-towers-for-easy-installation
Approx # of
towers in Africa
Hayat
TP 1997 1,200-1,500
Communications
Footprint:
Sample clients: Etisalat, Qtel, Vodafone, Bharti, Wataniya, Ericsson, NSN, Alcatel-Lucent and Huawei
Company profile: TowerXchange issue two, pages 22-23 or visit www.towerxchange.com/are-there-opportunities-for-new-market-entrant-towercos-in-africa
Approx # of
towers in Africa
HOI-MEA TP Interested 5,600 1997 1,364
Footprint: Full turnkey services in Egypt (HQ), Sudan, KSA, UAE and Qatar, also supplying products to Algeria, Bangladesh, Ethiopia, Kuwait, Oman, Lebanon, Iraq, Libya and more
Sample clients: Vodafone Egypt & Qatar, Orascom, Mobinil, MTN Sudan, Zain KSA, Iraq & Sudan, du, NSN, Motorola, Ericsson, ZTE, Huawei, Alcatel-Lucent
Company profile: TowerXchange issue four, pages 75-78 or visit www.towerxchange.com/hoi-mea-reinvents-itself-as-a-towerco

Approx # of
towers in Africa
Leadcom TP TP 3-5,000 1982 700
Footprint (Africa): Benin, Burkina Faso, Chad, DRC, Gabon, Ghana, Ivory Coast, Niger, Rwanda, Tanzania, Uganda, Togo
Sample clients (Africa): Alcatel-Lucent, Ericsson, NSN, Huawei, Airtel, Atlantique Telecom, MTN, Orange, Tigo, Vodafone, Helios TA, Eaton, ATC
Company profile: TowerXchange issue two, pages 100-102 or visit www.towerxchange.com/the-marriage-of-passive-and-active-infrastructure-management
Approx # of
towers in Africa
250 permanent, 500-
Likusasa TP TP TP 3,000 1995
750 contractors
Footprint: Mauritius HQ, Mozambique, Zimbabwe, Zambia, Malawi, South Africa, Lesotho, Angola, Cameroon, Nigeria, Ghana, Liberia, SDR Guinea, Sierra Leone, Kenya, Tanzania
Sample clients: MTN, Econet, Cell C, Vodacom, Huawei, Ericsson, NSN, American Tower, Helios
Company profile: TowerXchange issue two, pages 86-89 or visit www.towerxchange.com/the-future-is-now
Approx # of
towers in Africa
1,400 total, 800 in
Mer Telecom TP 3-4,000 1948
telecoms
Footprint: Angola, DRC, Ghana, Guinea-Conakry, Mozambique, Niger, Rwanda, Senegal, Tanzania – able to perform and supply anywhere in SSA (also active in LatAm, Russia
and CIS countries)
Sample clients: Vodacom, Vodafone, Airtel, Tigo, FT-Orange, Celcom, American Tower, Huawei, ZTE
Company profile: TowerXchange issue three, pages 71-75 or visit www.towerxchange.com/one-stop-shop-turnkey-wireless-infrastructure-provider
Approx # of
towers in Africa
18,000 in MENA
Mobiserve Interested 1999 5,000
& Asia
Footprint: Algeria, Egypt, Morocco, Tunisia, plus East Africa on a project basis. Also Saudi Arabia, UAE, Pakistan and Bangladesh
Sample clients: Mobinil, Vodafone, Etisalat, Djezzy, Mobilink, Banglalink, Inwi, Meditel, Orange , Zain, Mobily, Huawei, Ericsson
Company profile: TowerXchange issue three, pages 57-59 or visit www.towerxchange.com/tower-deal-imminent-in-egypt

Approx # of
towers in Africa
NETIS 1,600 2009 375
Footprint (Africa): Burkina Faso, Cote D’Ivoire, Ghana, Uganda (with offices opening soon in Kenya and Cameroon)
Sample clients: Eaton, Helios, ATC, IHS, Ericsson, Alcatel-Lucent, MTN, Orange, Comium, Vodafone, Mobitel, Airtel
Company profile: TowerXchange issue three, pages XX-XX or visit www.towerxchange.com/end-to-end-services
Approx # of
towers in Africa
NEWL 2,385 1987 350
Footprint: Tanzania, Malawi. Kenya, Rwanda, Uganda and Zambia offices opening soon
Sample clients: Airtel Malawi, Airtel Tanzania, NSN, Vodacom Tanzania, Zantel
Company profile: TowerXchange issue five, pages 46-51 or visit www.towerxchange.com/a-view-of-tanzania-from-the-front-lines-of-the-markets-leading-managed-service-provider
Approx # of
towers in Africa
600 full time,
Plessey TP TP 12,000+ Over 50 years ago
2,000+ contractors
Footprint: Nigeria, Ghana, Kenya, Uganda, Tanzania, Mozambique, Zambia, South Africa (HQ)
Sample clients: Airtel, Helios, ATC, MTN Nigeria, MTN South Africa, Vodacom Mozambique, Vodacom Tanzania
Company profile: TowerXchange issue four, pages 93-95 or visit www.towerxchange.com/blue-chip-turnkey-infrastructure-provider-moves-into-managed-services
Approx # of
towers in Africa
Ramboll TP Software 7,000 1945 10,000
Footprint: Pan African, continental HQ in South Africa
Sample clients: (In Africa) Huawei, NSN, ZTE, Ericsson, American Tower, IHS Africa, Helios, Airtel, Vodafone, MTN
Company profile: TowerXchange issue one, pages 34-36 or visit www.towerxchange.com/design-for-shareability

Approx # of
towers in Africa
Reime Group 3-4,000 1912 360
Footprint: DRC, Ghana, Cote d’Ivoire, Kenya, Madagascar, Malawi, Nigeria, Republic of the Congo, Tanzania, Uganda, Zambia plus satellite operations in Burkina Faso, Rwanda and Sierra Leone
Sample clients: Airtel, Alcatel-Lucent, Eaton, Helios TA, Helios TN, Huawei, IHS, MTN, NSN, Safaricom, SWAP, Tigo, Vodacom, ZTE
Company profile: TowerXchange issue two, pages 91-94 or visit www.towerxchange.com/what-gets-measured-gets-done-at-reime-group
Approx # of
towers in Africa
Tens of thousands
TESA TP 2001 100
of fences
Footprint: South Africa. Supplied to 16 countries
Sample clients: Ericsson, ZTE, NSN, MTN, Cell C, Likusasa, Plessey, QTE, Radio Network Solutions
Company profile: TowerXchange issue three, pages 81-84 or visit www.towerxchange.com/time-to-market-a-critical-differentiator-within-the-tower-industry-supply-chain
Approx # of
towers in Africa
1500 project
VNTower TP TP 2007 60
managed
Footprint: Currently seeking African partner
Sample clients: Viettel, Ericsson, Vietnamese Navy, Huawei, Vimpelcom, Telenor

Company profile: TowerXchange issue three, pages 90-91 or visit www.towerxchange.com/fast-deployment-at-a-reasonable-price
Inviting other static asset manufacturers and managed service providers to be profiled in TowerXchange
If you would like to refer us to other turnkey infrastructure companies that The TowerXchange Meetup will feature a unique “Shootout” of managed
should be featured in this Who’s who, then please contact TowerXchange at service providers; five minute demonstrations and differentiations
[email protected]. We are generally interested in companies of the leading players in this category, giving buyers an opportunity
that have manufactured, installed or maintained at least 1,000 cell sites in to compare their capabilities, match them to their organisational
Africa, or smaller companies with a unique capability within this segment of requirements, and identify potential pan-African manufacturing and
the tower industry supply chain. service partners to receive RFPs.

Are you ready to meet the
demands of the emerging
markets data boom?
Modular, quick to deploy pre-fabricated data centres essential for the
transmission and management of data
David King, CEO, Flexenclosure
Developing countries have always had myriad

challenges for mobile operators and other
telecom companies to overcome: lack of or
substandard infrastructure, political uncertainty,
regulatory issues, challenging environments, vast
and sparsely populated geographical areas to
cover, unreliable energy supplies, poorer target
groups et cetera.
These challenges have been overcome with

Internal view of the eCentre (Maputo) ingenuity and perseverance. In many countries,
prepaid cards in small denominations sold in
This is a guest article submitted by David King, CEO of Flexenclosure, a specialist
numerous mobile booths have given consumers
developer of hybrid power systems and pre-fabricated data centres for the ICT industry. with little money access to mobile telephony.
David has decade-long experience from C-level work with many international high-tech Off-grid base stations in Asia, the Middle East
companies, many in emerging markets. and Africa are increasingly using green power

solutions almost completely replacing the use
of dirty and expensive diesel. In East Africa,
M-PESA and other mobile money systems have
revolutionised the way money is transferred,
making it possible for almost everybody to use
basic banking services.
Developing countries are next in line for a

data boom
So when the developing countries take the next

big step into the “post-mobile data revolution”,
there are of course going to be a number of
challenges to overcome. The penetration of data
in many of these markets is still low and prices
are still high. And even if everybody agrees that
data will take off in a big way, it is difficult to
predict when it will happen and how fast. How
can you best prepare to quickly respond to the
anticipated demand without investing too much
too early?
Lifting modules into place

The biggest challenge is infrastructure. High
quality, efficient data centres are essential. They leaks and other problems, as well as being oversize since its modular structure makes it easy to
house and power all the equipment needed for dimensioned since they cannot be expanded quickly expand in response to changing needs.
transmission of data and are both the heart and quickly and easily. More efficient power and cooling will make a pre-
brain of any network. But traditional builds for fabricated data centre more cost effective to run.
data centres take a lot of time to plan, co-ordinate Pre-fabricated modular data centres ideal for And quality, budget and the time plan can more
(with different suppliers) and construct. emerging markets networks easily be ensured for pre-fabricated purpose built
facilities, bringing predictability to the project.
Furthermore, challenging environments add a The solution is pre-fabricated modular data
lot of risk to a data centre project, often resulting centres. They are quicker to deploy and will in A pre-fabricated solution also makes it much
in delays and budget over-runs. Buildings for most cases save considerable time and money easier to customise the data centre for specific
data centres are often not purpose built to be compared to traditional brick and mortar needs and it can be deployed anywhere. Let
used as technical facilities, often with water buildings. The facility will always be the “right” us take a look at a live example: Vodacom in

Mozambique (a subsidiary of Vodafone) recently
decided to deploy a modular data centre (the
eCentre) on top of a six-storey parking garage next
to its corporate headquarters in central Maputo,
the capital of this southeast African country.
The roof top turn-key deployment is a 126 square

meter open space data centre. Vodacom needed to
put the facility in place quickly, efficiently, and on
time. The pre-fabricated build reduced the project
risk significantly because the construction work
was all done in ten weeks in a clean environment
(in Sweden) and the installation work needed on
site was completed in only eight days, in total a
fraction of what a similar local brick and mortar
project would have taken.
Speed and predictability in challenging

environments are critical issues in Africa
considering it is the fastest growing mobile
market in the world and the take off for data
could be right around the corner. Pre-fabricated,
modular and custom-designed data centres that
can be deployed very quickly, and easily re-
deployed if needed, is yet another innovative
solution to an African problem (or rather African
situation, since there is nothing problematic with
fast growth).
It is a solution that will allow data centre owners

- internet service providers, hosting companies,
mobile operators and banks - in developing
countries to act quickly and confidently towards a
demand for data that might be stronger than any
The eCentre Build by Flexenclosure for Vodacom
of us expect

Cell site security and
TowerXchange: Tell us about your new app David.
David Meganck, Founder and COO, Acsys: With
access control problems? the rapid proliferation of smart phones, and their
lowered costs, and based on the demand of some of
our customers, we saw the opportunity to create an
There’s an app for that! app that integrates the CGS into a smartphone app and
some added features which are very useful for remote
Acsys has designed and successfully deployed site workers.
a solution called the CGS (Code Generating
System) which allows control centers (such as One of the significant features is the geo-location or
a telco or towerco’s NOC) to give users with geo-fencing solution. This allows the system to be run
programmed keys access to any site, anytime, automatically and only generate access codes if a user
anywhere by issuing a single-usage time-limited has reached a specific location defined by latitude and
longitude. This function also allows the control center
code that is issued by the software. The user
to know in real-time where the users are located which
needs to contact the control center by phone
can be of very significant value when a site is down and
or SMS to get the real-time code which in
an assessment needs to be made on who is closest to
turn alerts the control center that someone is
the site and certified for that type of maintenance.
accessing the site. The advantage of the Acsys
CGS solution is that any phone can be used, TowerXchange: What other functionality does the
making its application universal. app have?
Keywords: Access Control, Monitoring & David Meganck, Founder and COO, Acsys: Based on
Management, Fuel security, Health & Safety, KPIs, customer input, we also added several other features.
Site Visits, RMS, Site Management System, Fencing,
David Meganck, Founder and COO, Acsys Africa, Acsys Task assignment, scheduling and reporting -
whenever an event is created through the remote site
Read this article to learn: management platform, the user will receive a message
< Issuing a single usage, time limited code enabling specific users to access sites using programmed keys with a clear description of the task, location and
< How to “close the loop” on task management and job ticketing, reducing downtime others. Multiple tasks can be assigned to a user. Upon
< Live chat and access to document repositories to enhance remote worker support completion the user can report back to the NOC with
< How customers are using the app to minimise theft, generate KPIs and optimise maintenance processes the result of his work allowing the NOC to either close
< Sharing critical information and images with emergency services to improve H&S or leave the event as pending.

Optionally a dynamic solution can be proposed which, NOC now has real-time feedback of where the user is, work fully independently or fully integrated. The
after the creation of the event, the software will and also can control when the user opens and locks a integrated version (ex with Remedy) gives a full and
determine which available and certified user is closest site. clear reporting of who was assigned to the task, when,
to a site which is down, leading to an intervention and where this user was located, when he requested access
a significant decrease in downtime. We have often In some cases the company required a vendor to go on to get in, when he requested access to get out and how
seen that some people travel one hour to get to a site site but they arrived only within the limit of the two much time was spent on site. By making everything
when in fact another technician was only 15 minutes hours as specified by contract when in fact they could electronic, we also prevent collusion between
away leading to a waste of resources and increased have gone much sooner as staff were available, but employees.
downtime. since the NOC didn’t know where those staff were and
if they were available they had no data on which to TowerXchange: What does it cost?
Event documenting - events can be documented base a conversation about improving service with the
through picture taking (for example in cases of broken vendor. David Meganck, Founder and COO, Acsys: In order
or vandalised equipment) and to document events from to lower barriers so that everyone can use the app,
the site such as broken trees, floods, fires et cetera. The task scheduling was also a significant step we have decided to make the app free of charge and
With time, date and location stamp information, this forward as many times issues arose with users going available to the public on the Android store starting 1
data is genuine, reliable and impossible to defraud. to the wrong sites or carrying out the wrong tasks as November 2013.
communication over the phone wasn’t good, leading to
Live bridge between user and NOC - the app also misunderstandings. TowerXchange: How does using the app improve
has a chat platform allowing the user to communicate health, safety and security at emerging market cell
directly with the NOC and other users of the app to get As a prominent company in the telco industry, they sites?
information and advice. also felt they had a moral obligation to ensure staff
security by knowing where they are. If a member of David Meganck, Founder and COO, Acsys: By providing
Document repository - allowing the user to access staff doesn’t move for three hours even though his real-time location and location-based code generation
data sheets for new equipment and/or other documents maintenance task should only take 45 minutes, the we are able to improve operational efficiency in a
that are stored on the company intranet. NOC knows there might be some issues with the site or significant way allowing for more efficient, controlled
the user himself. Moreover the data which is created and rapid response to events. This data in turns
TowerXchange: Please tell us about one of your serves as a benchmark for future interventions in serves to create KPI’s and benchmarks for similar
customers who are using the app. terms of time spent to reach site, and time spent to interventions in the future.
complete a recurring task.
David Meganck, Founder and COO, Acsys: Our first Equally the NOC is now able to see where all their
customer was mostly interested in the geo-fencing TowerXchange: How does the app integrate with site workers are and in the case of conflict or emergency,
solution as they had dealt with a number of cases management and job ticketing systems back at the the NOC can provide support to the user and/or send
where a user gained access to a site and then left NOC? emergency services to the user’s location. By allowing
without closing it, allowing others to gain access and pictures to be sent to the NOC instantly, events can be
steal equipment. With the geo-fencing and CGS, the David Meganck, Founder and COO, Acsys: It can acted upon in a more efficient way

Tower Xchange
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< Vodacom and Etisalat’s tower strategy

Tower Xchange < MTN’s tower strategy in Rwanda and Zambia

< Tanzania case study with exclusive HTA interview

ISSUE 5 | September 2013 | www.towerxchange.com

Let’s meet up!

TowerXchange is your independent community

2 | TowerXchange Issue 5 | www.towerxchange.com www.towerxchange.com

5 Tower counts & transaction history

70 RMS and site management,

3 | TowerXchange Issue 2 | www.towerxchange.com www.towerxchange.com | TowerXchange Issue 5 | 3

counts and transaction 10000

history for Africa

Estimated number of towers owned or managed by towercos in Africa

Unknown Country 6000

Eaton Towers 700 700 1000 100 Ghana

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Legend Egypt Somalia

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Legend Egypt Somalia

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Millicom and Orange re-engaging in African tower deals?

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Our client is a rapidly expanding Towers Company with

New CEO for Airtel Africa

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As TowerXchange extends our footprint beyond Africa

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could open up Rwanda

and Zambia of MTN’s consolidated revenue and 40% of its

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Meanwhile, recent developments in Rwanda and

Rwanda: price competition and coverage

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made more interesting by recent reports that Sudatel,

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Tim Knowles, Head of M&A, Etisalat: In some

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Most big operators have been running for ten or

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TowerXchange: Please talk to us about the

Tim Knowles, Head of M&A, Etisalat: Again, we

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Register now at www.towerxchange.com/meetups/africa. Questions? Call Annabelle on +44 7423 512588

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Your workshop hosts About your workshop host

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Partner selection shootout

Small groups of buyers recieve

200 Director, VP and C-level Decision makers broken down

Investors and Investment Management Advisors