Zain and Ooredoo launch regional tower platform
Zain Group and Ooredoo announced the closure of the first phase of a deal to create a unified regional tower platform comprising approximately 4,000 towers, aiming to increase efficiency and create added value.
Translated by Qiyas from النهار — Original source
Kuwait-based mobile telecommunications company Zain Group (Ticker: ZAIN) and Ooredoo (Ticker: ORDS) announced today the completion of the first closing of the transaction paving the way for the launch of a joint regional tower platform. In a press release, the two companies stated that this closing consolidates the tower assets of Zain Kuwait (ITK) and Ooredoo Qatar (Ooredoo Towers) into a single regional tower platform, jointly owned 50-50 by the two groups. These assets include approximately 4,000 telecommunications towers.
The release revealed that the transaction is expected to create significant added value by increasing economies of scale, improving capital efficiency, and adopting a dedicated operational model based on passive infrastructure. As its operations expand, the tower platform will support the delivery of “Infrastructure-as-a-Service” solutions, enabling telecommunications operators to access infrastructure with higher capital efficiency and supporting the ongoing evolution of digital infrastructure in the region’s markets.
Notably, additional tower portfolios are expected to be gradually integrated into the platform, in accordance with applicable closing conditions and upon obtaining regulatory and other required approvals.
Bader Nasser Al-Kharafi, Vice Chairman and CEO of Zain Group, said: “The first closing of the tower platform transaction represents a pivotal step in the digital infrastructure development journey of both companies. This step reflects our shared strategy to create specialized, sustainable, and scalable platforms that unlock greater value from our assets and support efforts to reduce the carbon footprint in the region.” He added, “We are confident that the tower platform will play an increasingly important role in solidifying the digital foundations of both companies and enabling the next generation of connectivity services, innovation, and economic growth for the communities we are proud to serve.” Al-Kharafi continued, “We extend our sincere gratitude to the regulatory authorities in the State of Kuwait for their support and visionary leadership throughout the approval stages of this transaction.”
For his part, Ooredoo Group CEO Aziz Al-Othman Al-Fakhro said: “The completion of the first closing phase marks a highly significant milestone in building a regional tower platform designed to create substantial added value, with a clear path for expansion through additional contributions from other markets.” He added, “With this achievement, we are moving forward with implementing our plans across the various digital infrastructure sectors outlined in our strategy, as we continue to build a leading regional portfolio.” He further stated, “We extend our sincere thanks to the Telecommunications Regulatory Authority and the Ministry of Municipality in the State of Qatar for their support and contribution in providing an enabling regulatory environment throughout the approval and consent process.”
It is worth noting that both Zain and Ooredoo will retain their active infrastructure, including technical equipment, software, and intellectual property rights necessary for operating and managing their respective telecommunications networks.
