- Airtel Africa inks 1.2 billion lease extension with American Tower Corp. for 7,100 sites across Nigeria, Uganda, Kenya, and Niger, stabilizing operational costs.
- The deal aims to stabilize costs and enhance renewable energy usage, reducing reliance on diesel at key sites.
- Airtel faces ongoing reviews from the Comesa Competition Commission, which may impact the partnership's terms in Kenya and Uganda.
Airtel Africa Plc, the pan-African telecommunications provider and a subsidiary of Bharti Airtel, the telecom giant led by Indian billionaire Sunil Bharti Mittal, has inked a 1.2 billion, 12-year extension on its tower lease agreements with American Tower Corp. ATC across four high-growth African marketsNigeria, Uganda, Kenya, and Niger.
The deal, covering 7,100 sites, aims to stabilize operational costs and accelerate sustainable energy usage, even as Airtel faces ongoing scrutiny from the Comesa Competition Commission over alleged anti-competitive practices.
Airtel Africas lease renewals support sustainability initiativesThe new lease agreements, detailed in Airtel Africas half-year financials through September 30, 2024, come as existing contracts approach expiration within the next two years. Airtel emphasized the independence of the renewed terms from the Comesa investigation, stating, These renewals allow us to maintain benefits from contract structures, including currency-linked provisions.xA0
A substantial shift to renewable energy across key sites is anticipated, aimed at reducing diesel reliance and supporting Airtel's environmental targets, with potential for mid-term cost reductions.
Airtel Africas Vice President for Corporate Communications, Emeka Oparah, noted that the terms were commercially negotiated outside of regulatory inquiries, underscoring a focus on operational and environmental imperatives. The lease extensions are expected to bolster Airtels 5G rollout, expanding data capacity and reinforcing network stability in core growth markets.
