Besiimire: Mobile operators should consider infrastructure sharing to cut costs

Mobile operators in Africa are facing a myriad of challenges ranging from taxation hurdles to energy shortages that are impacting their ability to expand and improve connectivity across the continent. In a recent interview with CNBC Africa, Phillip Besiimire, Managing Director at Vodacom Tanzania, highlighted the need for innovative financing models, infrastructure sharing, and energy-efficient solutions to address these pressing issues. With the mobile industry playing a crucial role in driving economic growth and fostering connectivity, it is essential for stakeholders to come together and find sustainable solutions to propel the sector forward. One of the key themes that emerged from Besiimire's interview was the importance of innovative financing models to bridge broadband connectivity gaps. He emphasized the role of mobile operators, banks, financial institutions, and policymakers in exploring new avenues such as broadband bonds to secure long-term financing with low interest rates. By channeling investments towards broadband infrastructure and next-generation technologies like 5G, operators can enhance connectivity and drive digital inclusion across Africa. Infrastructure sharing also emerged as a critical factor in maximizing efficiency and reducing costs within the industry. Besiimire underscored the need for greater collaboration among industry players to jointly fund projects and share infrastructure resources. In an era where building individual networks is no longer sustainable, operators must embrace a more collaborative approach to infrastructure development to accelerate connectivity expansion without compromising competitiveness. Another significant challenge facing mobile operators in Africa is the burden of high taxation levels imposed by governments. Besiimire called for a more equitable and predictable tax framework that provides clarity to businesses and investors operating in the sector. The current disjointed tax policies across jurisdictions, coupled with exorbitant tax rates and additional levies, are hindering operators' ability to reinvest in network expansion and deliver affordable services to consumers. By fostering a conducive tax environment that balances corporate responsibility with economic growth, governments can incentivize operators to invest in critical infrastructure and meet connectivity targets. In addition to taxation and infrastructure sharing, energy challenges pose a substantial obstacle to the operational efficiency of mobile operators in Africa. Besiimire highlighted the impact of inconsistent energy supply on network operations, emphasizing the need for sustainable energy solutions to mitigate disruptions. Collaborative efforts with government, original equipment manufacturers (OEMs), and energy suppliers are essential in implementing energy-efficient practices and exploring renewable energy sources like solar power. While advancements in energy-saving technologies and smart features offer some relief, the industrialization of clean energy for widespread network deployment remains a complex and costly endeavor that requires further research and innovation. As the mobile industry continues to drive digital transformation and empower communities across Africa, addressing key issues related to taxation, infrastructure sharing, and energy sustainability will be crucial in unlocking the sector's full potential. By fostering partnerships, embracing innovative financing mechanisms, and adopting sustainable energy solutions, mobile operators can navigate challenges, expand connectivity, and contribute to the socioeconomic development of the continent.