Ooredoo Q.P.S.C. and Mobile Telecommunications Company K.S.C.P. (Zain Group) have announced the first closing of their transaction, marking a significant milestone in the launch of their regional telecom tower platform. The platform will be jointly owned by both groups, with each holding a 50% stake. The combined assets represent a portfolio of approximately 4,000 telecom towers.
The platform aims to optimize capital efficiency, support digital infrastructure development, and reduce carbon footprint. As the platform grows, it will provide "infrastructure as a service" to telecom operators, allowing them to access infrastructure while optimizing capital investments. This will contribute to the continuous development of digital infrastructure in the region.
The deal is expected to generate significant value through economies of scale, improved capital efficiency, and a specialized operational model based on passive telecom infrastructure. Ooredoo and Zain will retain ownership and control of their respective active infrastructure, including technical equipment, software, and intellectual property necessary for their telecom networks.
Ooredoo Group CEO, Aziz Aluthman Fakhroo, highlighted that the achievement marks a major step in establishing a regional telecom tower platform designed to generate significant value and with clear expansion prospects. He thanked the Qatar Communications Regulatory Authority and the Ministry of Municipality of the State of Qatar for their support.
Zain Group Vice Chairman and CEO, Bader Nasser Al-Kharafi, noted that the platform will play an increasingly important role in strengthening the digital foundations of both groups, promoting the emergence of the next generation of connectivity services, innovation, and economic growth. He also thanked the regulatory authorities in Kuwait for their support.
The platform will focus on integrating additional tower portfolios, subject to closing conditions and regulatory approvals. Ooredoo and Zain will continue to operate their respective telecom businesses, with the tower platform serving as a separate entity.
Both Ooredoo and Zain are major players in the telecom industry, with Ooredoo operating in nine countries across the Middle East, North Africa, and Southeast Asia, and Zain present in nine markets in the Middle East and Africa. The partnership is expected to drive growth and innovation in the region's digital infrastructure.
Key points
- Ooredoo and Zain have launched a regional telecom tower platform, combining their tower assets in Qatar and Kuwait.
- The platform aims to optimize capital efficiency, support digital infrastructure development, and reduce carbon footprint.
- The deal is expected to generate significant value through economies of scale and improved capital efficiency.
