IHS Marketing Mix

Build-to-Suit (BTS) sites represent a key aspect of IHS Towers' product offering, directly addressing the Product element of the marketing mix by providing custom-built infrastructure. This service goes beyond standard colocation, offering clients new towers designed precisely for their unique network requirements. IHS manages the entire lifecycle, from initial site selection and legal checks to the final construction, ensuring a seamless and tailored solution for network expansion.

The company's commitment to this product is evident in its recent performance and future projections. In 2024, IHS Towers successfully delivered 929 new build-to-suit sites. Looking ahead to 2025, the company anticipates constructing approximately 500 new towers, with a strategic focus on supporting the burgeoning demand for 5G technology and broader mobile broadband services.

IHS Towers' product offering is multifaceted, extending beyond basic tower leasing to encompass a comprehensive suite of connectivity solutions. This includes the development of Build-to-Suit (BTS) towers, tailored to specific client needs, and the expansion of fiber optic networks and Distributed Antenna Systems (DAS) to enhance broadband penetration and indoor coverage. These services are crucial for meeting the evolving demands of mobile network operators and end-users alike.

IHS Towers prioritizes direct sales, forging long-term Master Lease Agreements (MLAs) with major mobile network operators such as MTN and Airtel. This strategy is fundamental to their operational success, guaranteeing predictable revenue and supporting their clients' network growth initiatives.

These direct partnerships are the bedrock of IHS's business, providing the stability needed for sustained growth and infrastructure development. As of 2024, a significant 72% of IHS's total revenue was derived from these secured, long-term contractual commitments, underscoring the importance of this sales channel.

Place, within IHS Towers' marketing mix, is defined by its strategic geographic concentration and portfolio optimization. The company's operational footprint, as of year-end 2024, encompassed 39,229 towers across eight countries, with a deliberate emphasis on high-growth emerging markets in Africa and Latin America. This focus is critical for driving revenue and supporting the expansion of mobile connectivity. The divestment from less profitable markets, such as Peru and Kuwait in 2024, and the planned sale of Rwanda operations in May 2025, further sharpens this strategic placement for enhanced efficiency.

IHS Towers demonstrates its commitment to sustainability and digital inclusion through its annual Sustainability Report, detailing progress in ethics, environment, and socioeconomic development. This report serves as a key communication tool for their 4P's marketing mix, specifically addressing the 'Promotion' aspect by showcasing tangible initiatives.

A significant part of their promotional efforts involves highlighting impactful partnerships. For instance, their three-year collaboration with Giga, a joint initiative by UNICEF and the ITU, directly addresses digital inclusion by connecting schools to the internet. This partnership exemplifies their dedication to bridging the digital divide, a crucial element of their sustainability narrative.

In 2023, IHS Towers reported connecting 1,000 schools to the internet through their Giga partnership, a testament to their active role in promoting digital inclusion. This outreach not only aligns with their sustainability goals but also enhances their brand image among stakeholders who value corporate social responsibility.

IHS Towers leverages strategic partnerships and direct customer engagement as key promotional tools. Their active participation in industry events and robust investor relations program, including detailed sustainability reports and earnings calls, enhances transparency and investor confidence. These efforts highlight their role in expanding digital inclusion and economic growth, as evidenced by their 2023 Giga partnership success in connecting 1,000 schools.

Power indexation is a crucial pricing strategy, particularly for businesses with substantial energy expenditures. For instance, in 2024, many industrial manufacturers are incorporating clauses that automatically adjust prices based on a pre-determined energy index, shielding them from sharp increases in electricity or fuel costs.

In parallel, foreign exchange (FX) considerations are paramount, especially in emerging markets. Nigeria, for example, has experienced significant currency depreciation in recent years. To counter this, companies are implementing FX reset mechanisms on contracts, ensuring that dollar-denominated revenues are protected against a weakening Naira, thereby stabilizing profitability.

IHS Towers' pricing is fundamentally built on long-term lease agreements, ensuring predictable revenue streams. These contracts often include escalators to account for inflation, a critical feature given that 72% of their 2024 revenue was already secured this way. The colocation model means more tenants on a tower lower per-tenant costs, with new tenants potentially boosting site revenue by 30-50% in 2024 while only slightly increasing operational expenses.

Power indexation and FX reset mechanisms are also key, protecting against energy cost spikes and currency depreciation, especially in markets like Nigeria. IHS Towers prices competitively, reflecting the value of their extensive network, high site capacity, and the operational savings they offer MNOs, who can see 20-30% savings on operational expenditures compared to self-ownership.