Telecoms: Balancing infrastructure, regulation, ESG & cost competitiveness

In the ever-evolving world of telecommunications, companies are faced with the challenge of balancing growth and expansion with legacy infrastructure, regulatory compliance, and changing price points. Azeez Amida, the CEO of PanAfrican Towers, recently joined CNBC Africa to shed light on the latest trends in the telecom sector. Amida discussed the need for investment in 5G and AI while navigating the challenges of legacy infrastructure and regulatory hurdles. He emphasized the importance of transitioning to newer technologies while ensuring an enabling environment for Mobile Network Operators (MNOs) to expand. Pan-African Towers plays a pivotal role in this transition by deploying towers and enabling MNOs to grow with the evolving technology landscape. Amida highlighted the significance of localizing technology adoption to expedite the rate of adoption, especially in the case of 5G infrastructure deployment. As the sector moves towards AI integration, Amida stressed the need for comprehensive infrastructure coverage before delving into advanced technologies like AI. One of the key challenges in adopting foreign technologies in the telecom sector is the volatility in foreign exchange rates. With fluctuating FX rates, companies are exploring innovative financing models to mitigate the impact of Forex fluctuations. Pan-African Towers is investing in internally generated funding and local research to reduce the exposure to foreign investments. By focusing on local pricing and promoting local content providers, the company aims to enhance cost competitiveness while aligning with consumer trends. Amida underscored the importance of collaborating with MNOs to penetrate rural and lower-income markets sustainably. The company is working closely with MNOs to develop models that ensure market expansion while maintaining cost competitiveness. Additionally, the emergence of streaming services paying telecom companies for network access is poised to reshape the telecom sector. Amida highlighted the need to ensure fair compensation for MNOs while navigating the evolving landscape of streaming services in Africa. As the sector continues to evolve, the distribution of financial burdens between consumers, streaming services, and telecom companies remains a key consideration for sustainable growth and profitability. In conclusion, the telecom sector in Africa is at a pivotal juncture, balancing the demands of growth, regulatory compliance, finance, and ESG goals. Companies like Pan-African Towers are at the forefront of driving innovation, adopting new technologies, and ensuring sustainable expansion in a dynamic and competitive market.