Latest Developments: TowerCo of Africa Uganda (TowerCo Uganda) has secured USD40mn from European investors to expand rural mobile coverage. The investment will fund 506 new telecom towers to alleviate network congestion and fill coverage gaps in under-served areas.
This development is a positive step forward for Uganda’s digital infrastructure, indicating a marginal shift in capital allocation toward telecommunications growth. It reflects a supportive climate for private investment in the region’s digital transformation, despite prevailing political risks, which we believe act as a brake on future long-term digital infrastructure projects.
Forecast Implications: The injection of US40mn for 506 new telecom towers in rural Uganda may push us to revise our mobile telecoms forecasts for the nation, albeit towards the end of decade. In the interim, we maintain that 4G will hold sway through the forecast period of 2024-2033, owing to its lower adoption costs relative to the nascent 5G. By 2027, 4G subscribers are envisaged to amass to 17.8mn – laying the groundwork for a more widespread 5G rollout as digital infrastructure gains density and disposable incomes rise. By the decade’s end, a more pronounced shift to 5G is expected, as evident in the substantial jump in 5G subscriptions from 825,400 in 2027 to an estimated 6.9mn by 2033. This long-term vision integrates the rural impetus provided by the new towers, amplifying Uganda’s digital connectivity landscape.
Source link : https://www.fitchsolutions.com/bmi/telecommunications/towerco-uganda-usd40mn-funding-support-5g-growth-08-03-2024
Author :
Publish date : 2024-03-08 08:00:00
Copyright for syndicated content belongs to the linked Source.