Japan-based mobile network operator NTT Docomo extended its agreement to sell more towers to Tokyo-based telecom infrastructure operator, JTower, according to Mobile World Live. The latest development follows a March 2022 deal in which JTower signed a master transaction agreement for carve-outs of a maximum 6,002 telecommunications towers owned by NTT Docomo at a valuation of $710 million. As of the end of June 2023, the MNO had transferred to JTower about 2,400 of the towers covered in the MTA.
The latest transaction is a sale-leaseback arrangement that covers 1,552 sites valued at $114 million. In a statement, the companies explained the transaction will enable them to “strengthen their network building” and use towers for a wider range of applications. NTT Docomo highlighted that greater infrastructure sharing will help streamline its 5G rollout and network operations.
The companies pointed out that tower acquisitions and increasing infrastructure sharing is a key growth strategy for JTower. Moreover, they state that this transaction strengthens JTower’s business foundation as an open infrastructure operator that can serve multiple MNO tenants.
NTT Docomo and JTower noted that they both benefit from more efficient capital investments, lower operating expenses for tenants, and a reduced environmental impact of their infrastructure through tower sharing. NTT Docomo acknowledges that it has been encouraging rival mobile network operators to share the sites.
Reader Interactions