Telecom giants Qatar’s Ooredoo, Kuwait’s Zain, and Dubai-based TASC Towers Holding have initiated “exclusive negotiations” to establish a joint tower company that would become the largest in the Middle East, according to an announcement made on Monday.
The discussions involve the consolidation of their combined “approximately 30,000 telecommunication tower assets in Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan” to form the joint venture, as revealed in a joint press release.
Anticipated to become the most extensive tower company in the MENA region, the companies are aiming to finalize “definitive agreements” during the third quarter of this year, following which the partnership would take effect.
In a collective statement, the partnering firms clarified that the enlarged tower company would maintain its autonomy as an independent entity, offering passive infrastructure services across the region. Emphasis is placed on operational efficiency, synergies, and the reduction of the carbon footprint as part of the endeavor.
Ooredoo and Zain underlined their intention to continue managing their respective active infrastructure, encompassing wireless communication antennas, intelligent software, and intellectual property related to telecom network management. Both entities expressed their dedication to executing growth strategies, optimizing capital utilization, and enhancing shareholder value while simultaneously prioritizing carbon reduction within the MENA region.
It’s important to note that Ooredoo’s tower network in Oman is following a separate process and is not encompassed by this potential joint venture.
The proposed transaction remains contingent upon several factors, including finalizing terms, signing definitive agreements, and obtaining the necessary corporate and regulatory approvals.
Should this potential collaboration come to fruition, it would represent a significant milestone in the telecommunications landscape of the region.
Ooredoo is a prominent player across the MENA region and Southeast Asia, serving customers in ten countries. The company’s robust performance is evident from its 2022 revenues of QAR 23 billion, which further expanded during the first quarter of this year. Figures released by Ooredoo in May indicated a 2% revenue increase between January and March, reaching QAR 5.6 billion compared to QAR 5.5 billion in the same period of 2022.
Kuwait’s Zain, a key operator in the region, caters to over 53 million active customers across seven countries. Meanwhile, TASC Towers Holding, headquartered in Dubai, stands out as the “largest independent towerco” in the entire MENA region.
The potential collaboration between these industry giants holds the promise of reshaping the telecommunications landscape and fostering enhanced efficiency, innovation, and sustainability in the MENA region.