Zain and Ooredoo Complete First Phase of Regional Tower Platform

Kuwait’s Zain Group and Qatar’s Ooredoo Group have completed the first phase of their regional tower platform, consolidating approximately 4,000 towers in Kuwait and Qatar. The joint venture, announced in a Thursday statement, sees each company holding a 50% stake in the new entity. This development follows a broader agreement signed in December 2023, which aims to integrate about 30,000 towers across six markets, including the initial portfolios from Zain Kuwait and Ooredoo Qatar.

The first closing brings Zain Kuwait’s ITK and Ooredoo Qatar’s Al Abraj tower assets into the platform. Each operator retains control over their active network equipment and the necessary technology to operate their networks. Additional tower portfolios are expected to join the platform over time, subject to regulatory approvals and other closing conditions.

Bader Al-Kharafi, vice-chairman and group CEO of Zain, described the first closing as a significant step in the evolution of digital infrastructure for both companies. He emphasized the shared strategy of creating scalable and sustainable platforms that maximize asset value while reducing the region’s carbon footprint. Aziz Aluthman Fakhroo, group CEO of Ooredoo, highlighted the milestone as a key part of Ooredoo’s strategy to create significant value and expand through additional market contributions.

The two groups anticipate that the deal will generate value through the larger scale of the combined portfolio, capital efficiencies, and a dedicated operating model for passive telecommunications infrastructure. As more portfolios are integrated, the platform will offer infrastructure-as-a-service, providing operators with a more capital-efficient way to access towers.

In December 2023, Ooredoo, Zain, and TASC Towers Holding signed definitive agreements to combine their tower businesses into a single regional platform. This initiative is part of a broader strategy to enhance digital infrastructure and operational efficiencies across the region.

**Context:** This development is significant as it represents a major consolidation effort in the telecommunications sector, aiming to optimize resources, reduce costs, and enhance operational efficiencies. The regional tower platform is expected to support the growth of digital infrastructure, benefiting both the companies involved and the broader telecommunications industry in the region.