A consortium of a Pakistani firm and a UAE-based company reported on Tuesday that Telecom Tower Infrastructure Company has “conditionally accepted the offer” to sell over 10,500 telecom towers to the conglomerate in Pakistan.
An industry official told The Express Tribune that the outsourcing of the mobile towers by a leading mobile phone service provider would help it improve tower management and reduce cost as well.
At the same time, the sale will enable it to focus more on its core business of providing improved services and offer better products to mobile phone users.
TPL Properties Company Secretary Danish Qazi said in a notification to Pakistan Stock Exchange (PSX) that “the parent of one of the largest telecom tower operators in Pakistan has conditionally accepted the offer, subject to signing of definitive (final) agreements, all necessary corporate approvals and receipt of relevant regulatory approvals, made by our subsidiary TPL REIT Management Company Limited in partnership with (UAE’s) TASC Towers for acquisition of their subsidiary (Telecom Tower Infrastructure Company), which owns and manages more than 10,500 telecom towers in Pakistan”.
An industry source stated that over 10,500 telecom towers under the management of Telecom Tower Infrastructure Company originally belong to Jazz (Mobilink).
There are around 36,000 mobile towers in operation and management by four telecom companies including Jazz, Telenor, Ufone and Zong. They altogether are serving 194 million cellular subscribers (including 121 million 3G/4G subscribers) in a population of 220 million people.
The cost of the transaction remains undisclosed and it is not known at what price Telecom Tower Infrastructure Company has agreed to sell its mobile towers network to the consortium of TPL REIT and TASC Towers.
Four years ago, Jazz had agreed to sell its towers network to a Malaysian firm – Edotco – for $940 million, but later on scrapped the deal, it was learnt.
The industry official said the other three mobile phone operators are also willing to sell their mobile towers to focus more on the core business of providing high-quality voice and data services.
“The remaining three industry players would learn from the experience of Jazz to sell the towers. If Jazz becomes a success story, then others may follow suit,” he added. He said companies like the consortium of TPL REIT and TASC Towers and Engro’s Enfrashare are working on projects to build and run a network of “common transmission towers” in Pakistan, meaning one tower can be utilised by multiple service providers.
Such companies may help phone companies to expand their network, as they are offering services mostly in major cities.
Earlier, TPL Properties announced in September 2022 that its wholly owned subsidiary TPL REIT Management Company – after achieving the first financial close of Rs18.35 billion in TPL REIT Fund I – had entered into a strategic partnership with TASC Towers.
TASC, headquartered in the UAE, is a leading global operator of mobile telecom towers and has deployed and is managing over 14,000 towers in multiple geographies.
The transaction is expected to attract foreign direct investment into Pakistan.
Published in The Express Tribune, December 21st, 2022.
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