MTN South Africa to divest infrastructure?

10 August 2012 | Kavit Majithia


MTN South Africa is thought to be considering selling off up to half of its base station infrastructure, according to industry reports.

Karel Pienaar, managing director at MTN South Africa, told reporters the group had completed infrastructure agreements on the continent and its core focus was no longer on existing infrastructure on the ground.

“We don’t leverage it to the extent that perhaps we could,” he said. “If you put it into an entity that you can leverage, then you have improved efficiencies.”

The company is investigating the feasibility of this plan, and it said it would seek to sell its passive infrastructure initially but retain active elements of the infrastructure. Pienaar added that once LTE networks are deployed, it may look to divest dated parts of its networks.

MTN South Africa’s network consists of 6,000 towers and it shares capacity on a further 2,000.