Vodacom to move tower ops to separate legal entity

Tower company will be 100% owned by Vodacom Group and intends to announce MD in due course.
Image: Waldo Swiegers/Bloomberg

Vodacom Group said on Thursday it is establishing a separate legal entity for its South African tower business, after the telecoms operator reported a 5.2% rise in first- quarter revenue, helped by growth in its domestic operations.

South African telecoms firms have either carved out towers businesses or sold them to tower companies, a move also seen globally, as a way to monetise part of the business and keep a chunk for future gains or use the proceeds to fund fast growing services like fintech.

The tower company will be 100% owned by Vodacom Group and intends to announce the managing director of the business in due course, Vodacom Group Chief Executive Officer Shameel Joosub said in a statement.

“During the past quarter we made good progress on the optimisation of our assets, which in the medium term will also positively contribute to bridging the digital divide.”

Vodacom, majority-owned by Britain’s Vodafone, said group revenue for the quarter ended on June 30 rose to R26.1 billion ($1.53 billion) from R24.8 billion in the same quarter last year.

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