Tokyo-based JTOWER has announced the signing of a master transaction agreement to purchase 71 telecommunications towers owned by Nippon Telegraph and Telephone West Corporation (NTT West). In a press release outlining the agreement, the parties confirmed that the contracts of the existing tenants of each tower will be successively transferred from NTT West to JTOWER from September 2021. No financial details have been disclosed but the tower company noted that it is pursuing an M&A strategy to purchase (or ‘carve out’) existing infrastructure owned by telcos for ‘infra-sharing’ to provide more efficient, economical solutions. The press release goes on to clarify: ‘The expansion of 5G networks, which will take an important role of social infrastructure in the future, is expected to need the deployments of an enormous number of base stations compared to 4G. JTOWER and NTT Corp have been considering measures including the utilisation of existing infrastructures in order to provide efficient and economical infra-sharing solutions that contribute to the telecommunications industry.’
NTT Corp, meanwhile, will provide JTOWER both its experience in the telecoms space and assets owned by the group, such as ‘optical fibre required for 5G networks and NTT’s telephone office building spaces required for the installation of telecommunications equipment’.