Communication Tower Infrastructure Company has “conditionally accepted the offer” to sell more than 10,500 telecom towers to the conglomerate in Pakistan, according to a report on Tuesday from a partnership between a Pakistani business and one located in the United Arab Emirates.
An industry insider claimed to The Express Tribune that a top mobile phone service provider would benefit from better tower management and cost savings if it outsourced its mobile tower operations.
Additionally, the sale will allow it to concentrate more on its main business of offering mobile phone users better services and products.
The parent company of one of Pakistan’s largest telecom tower operators has conditionally accepted the offer made by our subsidiary TPL REIT Management Company Limited in partnership with (UAE’s) TASC Towers for the acquisition of their subs, according to a notification to the Pakistan Stock Exchange (PSX) from TPL Properties Company Secretary Danish Qazi.
According to a source in the sector, Jazz previously owned over 10,500 of the telecom towers managed by Telecom Tower Infrastructure Company (Mobilink).
Four telecom providers, including Jazz, Telenor, Ufone, and Zong, operate and manage about 36,000 mobile towers. A total of 220 million people are served by them, including 194 million cellular users (including 121 million 3G/4G subscribers).
The price at which Telecom Tower Infrastructure Company has agreed to sell its mobile tower network to the partnership of TPL REIT and TASC Towers is unknown, as is the cost of the deal.
Jazz had previously agreed to sell its tower network to Malaysian company Edotco for $940 million, but the transaction was later cancelled, it was learned.
According to a representative of the industry, the other three mobile phone providers are also willing to sell their mobile towers in order to concentrate more on their main business of offering premium voice and data services.
“Jazz’s experience selling the towers would serve as a lesson for the remaining three industry participants. Others may copy Jazz if it becomes a success story, he continued. According to him, organisations like the TPL REIT and TASC Towers consortium and Engro’s Enfrashare are working on plans to erect and maintain a network of “common transmission towers” in Pakistan, which allow for the use of a single tower by a number of service providers.
Due to the fact that these businesses mostly provide services in large cities, they may assist phone providers in expanding their network.
Prior to this, TPL Properties declared in September 2022 that its wholly owned subsidiary TPL REIT Management Company has partnered with TASC Towers after reaching the first financial close of Rs18.35 billion in TPL REIT Fund I.
Over 14,000 towers have been deployed and are currently being managed by TASC, a significant global operator of mobile communication towers with its headquarters in the UAE.
Pakistan is anticipated to benefit from the transaction by attracting foreign direct investment.