Namibia: MTC Rules Out Immediate Telecom Tower Spin-Off

Mobile Telecommunications Limited (MTC) says it has no immediate plans to separate its tower and other passive infrastructure assets into a standalone company, distancing itself from a trend gaining traction in the global telecommunications industry.

Telecom operators in several regional and international markets have increasingly spun off tower portfolios and other passive infrastructure into independent entities. The model is often used to unlock capital, improve operational efficiency and promote infrastructure sharing among operators.

However, the Namibia Securities Exchange-listed telecommunications company says such a move does not form part of its current plans.

"At the moment, MTC does not have such a consideration. However, we do not rule out its future possibility," MTC Corporate affairs manager John Ekongo tells The Brief.

While MTC is not pursuing the model, Telecom Namibia already operates its tower infrastructure through a separate subsidiary, PowerCom.

PowerCom was established in 2007 and later acquired by Telecom Namibia in 2013. The company focuses on building, managing and leasing tower infrastructure to mobile network operators, broadcasters and internet service providers.

The subsidiary has since expanded its role in Namibia's telecommunications sector by providing infrastructure solutions that allow multiple operators to colocate equipment on shared towers.

Globally, infrastructure spin-offs have become increasingly common as telecom operators seek to focus on core service delivery while specialised infrastructure companies manage and expand tower networks.

Supporters of the model argue that separating infrastructure assets can unlock shareholder value while encouraging broader infrastructure sharing and improved network coverage.

However, MTC has indicated that such an approach is not currently under consideration as part of its strategic plans.

Read the original article on Namibian.