Why African Telcos Should Sell their Data Center Assets

According to a Reuters report, US carrier Verizon Wireless is exploring the disposal of its data center assets – and they are hardly alone in doing so. African cloud dynamics are playing somewhat differently, but we still say African telcos cannot play organically in the public cloud, don’t really need the colo assets and there is more revenue in managed services anyway.

According to a Reuters report, US carrier Verizon Wireless is exploring the disposal of its data center assets. The company has 48 data centers, most obtained with the acquisition of data center specialist Terramark in 2011. Verizon is hardly alone. Last year, another US telco, Windstream announced it would sell its data center assets to colocation specialist Tier Point. likewise, Centurylink, one of the most aggressive telco players to move into the cloud business suggested that it was looking to sell its extensive data center network.

This note was published as part of The Xalam Analytics Monthly, our monthly analysis of AME digital infrastructure markets. The content is free to Xalam Insiders. Please login or register for an Insider account to download the full report (PDF version).

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