Jean Farhat and his business partner Jean-Claude Figali started NETIS (Network Industry and Services) as an end-to-end service and infrastructure partner in 2009. NETIS provides services in three main fields: building and upgrading telecom towers and power solutions, provision of comprehensive O&M services, and manufacture of towers and accessories in their factory in Abidjan, Cote d’Ivoire.
TowerXchange: Thanks for speaking to us today Jean. First please tell us where NETIS fits into the passive infrastructure ecosystem?
Jean Farhat, Managing Director, NETIS:
NETIS is a trusted partner for any requirement related to cell sites. Whether through our internal expertise or through our network of experts, we can respond to any request, whether for manufacture of an accessory, site construction, surveys and upgrades for multiple tenants, maintenance, power, RMS – we’ve even trained our competitors! For example, when Vodafone came into Ghana there was a lack of work at height certified riggers, so we arranged training both for our staff and for our competitors.
When Vodafone Ghana signed an operational lease agreement with Eaton Towers, we were drawn into the towerco business. We later also started working with Helios Towers Africa and American Tower in Ghana as well as with IHS in Cote d’Ivoire, and again with Eaton in Uganda. Netis also provides O&M services to mobile network operators such as Airtel, and Comium, as well as working with Ericsson and Alcatel-Lucent.
TowerXchange: When towercos are considering entering a new market, when do they start dialogue with key strategic partners like NETIS?
Jean Farhat, Managing Director, NETIS:
When towercos first came into Africa, it took them longer to become established in a new country and to start creating efficiencies. But now towercos have their own established processes and procedures, and are ready to move in new countries even before they win the bid. Towercos prepare their supply chains, engage strategic partners like NETIS, and agree prices in each new country while they’re bidding. Yes, this means a loss of time if they’re not awarded the contract, but a huge gain of time if they win the deal.
Within three to five months of signing a sale and leaseback or managed services agreement, the towercos can stabilise the network and start recording improvements to SLAs. Of course, much depends on the state of the network before the towerco takes over, but they conduct a detailed due diligence so they can identify priority investments.
TowerXchange: Tell us about the transfer of assets and staff when a tower transaction takes place.
Jean Farhat, Managing Director, NETIS:
When assets are transferred to towercos, an efficient team of the best staff will be transferred from mobile network operators to contractors like NETIS. These staff know the history of the sites and understand the weaknesses in the network, and they can perform more efficiently now they’re managed by a company whose core business is the installation and maintenance of passive infrastructure.
Initially the towerco keeps a close eye on contractors through a network of regional managers and O&M managers who stay in touch through weekly meetings. Once they have confidence in the contractor, the towercos are able to reassign some of those supervisory staff. And as that confidence in the partnership with companies like NETIS continues to improve, they become comfortable with us mutualising O&M and other services, and working with other towercos. This unlocks shared benefits such as local teams being able to cover a smaller area with a greater concentration of sites. With smaller distances to cover, there is less fatigue, and more time for preventative maintenance.
RMS should focus on three critical aspects; intelligent rectifiers, batteries and generators, categorised as an Integrated Power Management Solution (IPMS).... Everything else is noise
Tower transactions unlock investments in batteries, generators, RMS and tower reinforcement
TowerXchange: Does the transfer of assets from mobile network operators to towercos unlock “pent up” passive infrastructure maintenance and renewal programmes?
Jean Farhat, Managing Director, NETIS:
Every deal is different, but it’s true that tower transactions unlock a lot of activity. Mobile network operators may put projects on standby while seeking buyers or partners to manage their towers.
After the towerco takes over, they know the budget they have in place, they have their contractors “on the starting blocks” with vehicles ready, so there is almost immediate action. Tower transactions unlock investments in batteries, generators, RMS and tower reinforcement. Storage battery replacements are key to achieving SLAs, as are generator refurbishments, replacements and upgrades. Towercos will often deploy RMS and undertake structural analysis projects and tower strengthening to co-locate new tenants as quickly as possible to create additional revenues. Within two years towercos will have undertaken most planned investments. These new activities of towercos require new expertise from suppliers, such as the aforementioned structural analysis and strengthening.
TowerXchange: What are towercos’ key performance indicators?
Jean Farhat, Managing Director, NETIS:
There are few KPIs and they are very similar for all the towercos and in all the countries we’ve worked in.
Towercos will monitor AC and DC power uptime, time to access sites, and MTTR (Mean Time To Repair) – which includes the time taken between an alarm going on and the when the failed component is repaired. And of course they all have zero tolerance of tower falls.
TowerXchange: How is the concept of Vendor Managed Inventory (VMI) applied to towers?
Jean Farhat, Managing Director, NETIS:
VMI is a new concept introduced by Eaton Towers. Eaton has outsourced part of it’s supply chain and stock management to NETIS in Ghana, requiring the stock be available any time, in the right place, at the right price, enabling them to react as quickly as possible without incurring additional financial, administrative and stock costs.
VMI requires proper planning – we need to know the sales objectives and needs of the towerco. It helps that as O&M partner we have direct experience of what is needed in terms of spare parts.
VMI can’t work on “just-in-time” basis as many spare parts and equipment are manufactured in Asia or in Europe, so transit and delivery time needs to be managed properly, and stock need to be managed sharply and smartly. Too much stock exhausts capex, but holding too little means a risk of being out of stock of a critical component.
TowerXchange: Please tell us about NETIS’s experience with rapid deployment sites.
Jean Farhat, Managing Director, NETIS:
One of our specialities is the roll out of rapid deployment and mobile sites. NETIS has a strong partnership with companies that manufacture telescopic masts, so we’ve imported, deployed and maintained these sites in Cote d’Ivoire, Ghana, Equatorial Guinea and Niger.
There are two versions of the mobile telescopic mast: self-support and guy-masts, which tend to be deployed for longer terms or in windy environments. Mobile towers are mainly used for events such as football matches or elections; anywhere with crowd that would overload the local base stations without the additional capacity. It can be deployed and ready for telecom equipment installation in just 2-3 hours.
For example, in December 2011, we air-freight five units to Malabo. The five units were assembled and deployed at the stadiums in Malabo and Bata in just a week.
Rapid deployment sites can be installed in just two to three days as they don’t need foundations. For example, an operator in Ghana uses them to provide coverage for mines as rapid deployment towers can be relocated without the need for substantial civil works.
Rapid deployment units can be up to 40m, offering a greater load capacity than mobile sites. This can be useful when you have to replace a tower and transfer the antennas without interrupting the traffic.
RMS should focus on three critical aspects; intelligent rectifiers, batteries and generators, categorised as an Integrated Power Management Solution (IPMS).... Everything else is noise
Our top management remains involved on a daily basis – we are often out at sites. This enables us to understand and anticipate the needs of our clients, and win their trust
TowerXchange: How important is it to control the whole supply chain by owning your own factory in Cote d’Ivoire?
Jean Farhat, Managing Director, NETIS:
We acquired a factory in Abidjan in 2009. This gives us an advantage over competitors in West Africa as NETIS is able to respond with faster delivery time for galvanised materials such as tower accessories and tower strengthening members. Once you can provide the steelwork you can go further, often winning the contract for the full refurbishment of sites.
TowerXchange: Thanks Jean, please could you wrap up the interview by summing up how NETIS are differentiated from other managed service providers?
Jean Farhat, Managing Director, NETIS:
There are few companies that cover both O&M and projects as deeply as NETIS. We are also distinguished by having our own manufacturing facility in Cote d’Ivoire.
NETIS is small enough to be reactive and responsive to our clients’ needs. Our top management remains involved on a daily basis – we are often out at sites. This enables us to understand and anticipate the needs of our clients, and win their trust.
We have some big, strong competition in managed services and site-build, and we respect our competitors. Despite NETIS being relatively young in the market, we’re proud of what we have achieved.
