Back to top

Image: Bigstock

Orange & Vodacom Team Up to Boost Rural Network Coverage in Congo

Read MoreHide Full Article

Orange (ORANY - Free Report) and Vodacom recently formed a pioneering partnership to create Africa’s first rural tower company (towerco). The collaboration aims to address the persistent connectivity challenges in underserved regions of the Democratic Republic of Congo (DRC) and promote digital inclusion to a vast population. The joint venture (JV) will focus on building, owning and operating solar-powered mobile base stations in the DRC’s rural areas. By leveraging 2G and 4G technologies, the initiative is expected to provide network access to 19 million people across rural communities, enabling them to connect to essential voice, data and mobile financial services.

Orange RDC, a subsidiary of the Orange Group, has been transforming the DRC landscape for the past 12 years. With over 15 million subscribers and more than 3,400 sites, 90% of which are 4G-enabled, Orange RDC has showcased its commitment to innovation and inclusion. The company’s initiatives, such as the Orange Digital Centers & Clubs, provide free digital training to thousands of young Congolese, providing the youth with next-gen tech knowledge.

Building and maintaining networks in remote rural areas remains a major challenge in the DRC. To address this, Orange and Vodacom have pledged to construct up to 2,000 solar-powered base stations over the next six years, starting with an initial commitment of 1,000 sites. The project has the potential to scale further, with plans for an additional 1,000 towers. The JV’s completion is subject to approval from regulatory, administrative and competition authorities. With the first solar-powered base stations anticipated to commence operations in 2025, the JV is likely to be the foremost choice for other developing regions struggling with connectivity challenges.

Furthermore, the shared use of active and passive infrastructure strengthens the collaboration, with both companies acting as anchor tenants for an initial 20-year term. Also, the partnership will open its passive infrastructure to other MNOs, fostering competition and broadening consumer options in these regions.

Orange Price and Consensus

Orange Price and Consensus

Orange price-consensus-chart | Orange Quote

Currently, mobile Internet penetration in the DRC stands at just 32.3%. The DRC's National Digital Plan Horizon 2025 outlines a vision for a robust digital economy, emphasizing e-citizenship, e-government and e-commerce. The collaborative project aligns seamlessly with this vision by enabling greater access to digital services, driving job creation and boosting economic growth. 

Based in Paris, France, ORNAY offers a range of fixed telephony and mobile telecommunications, data transmission, Internet and multimedia, and other value-added services to consumers, businesses and other telecommunications operators under the Orange brand worldwide.

ORANY’s Zacks Rank & Stock Price Movement

At present, ORANY carries a Zacks Rank #5 (Strong Sell). Shares of the company have lost 14.7% compared with the sub-industry’s decline of 11.4% in the past year.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. (IDCC - Free Report) , Ubiquiti Inc. (UI - Free Report) and Qualcomm Incorporated (QCOM - Free Report) . IDCC, QCOM & UI presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.

Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. It is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


QUALCOMM Incorporated (QCOM) - free report >>

InterDigital, Inc. (IDCC) - free report >>

Ubiquiti Inc. (UI) - free report >>

Orange (ORANY) - free report >>

Published in