Applying the formula for annuities above with a 15% cost of capital, the
resulting annualization factors are as follows:
Asset Life:
Land
15 years
8 years
4 years
Annualization
Factor:
0.1500
0.1710
0.2229
0.3503
RURA collected data for actual capital expenditures and operating costs from
all main operators in Rwanda. These collected data sets have been analyzed
and categorized into different cost groups. After categorization of all cost
elements, weighted averages have been calculated to arrive at an “average
cost” for different classes of towers and access to electricity.
The applied cost categories are as follows:
- CAPEX for towers including material, installation charges, costs for
foundations, and – if applicable – additional costs e.g. for access roads
- CAPEX for land acquisition (which has no depreciation, but a return on
capital)
- CAPEX for power access, including grid connection, backup generators,
backup batteries (if applicable)
- Operating costs for tower maintenance (excluding any maintenance costs
for active equipment or antennas)
- Operating costs for power access, including costs of diesel for power
generators
The following table shows the results of the weighted average cost categories
for building a tower location in Rwanda, based on operator inputs:
CAPEX:
Type of Lattice Tower: Tower1:
Tower2:
Tower3:
(all cost figures in US-Dollar)
<30m
30m..50m
>50m
Material, Acquisition,
84,869
94,138
131,983
Installation, Road construction
Land Acquisition
19,081
15,699
14,105
OPEX:
Total annual OPEX:
4,522
4,857
5,415
Applying the above annualization factors leads to the following fully-allocated
service costs for towers. The monthly costs for tower sharing are derived by
dividing these annual costs by 12 and again by 2, assuming sharing between two
operators.
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