Japan-based NTT Docomo, with over 86 million subscribers, and JTower, the first infrastructure-sharing company in Japan, announced yesterday that they have decided to conclude a new master transaction agreement. This agreement will facilitate the transfer of ownership of an additional 1,552 Docomo towers to JTower. The deal is valued at JPY 17 billion and involves Docomo subsequently leasing the towers from JTower.
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Advancing Infrastructure Sharing
According to the joint statement, in March 2022, JTower and Docomo entered into the master transaction agreement, allowing the transfer of 6,002 of Docomo's telecommunications towers to JTower. The addition of this new agreement will further enhance the network infrastructure of the two companies, enabling the towers to be utilized for a broader range of applications and facilitating increased infrastructure sharing.
Smooth Transition Progress
Both companies explained that the transfer of towers related to the master transaction agreement is proceeding smoothly. By the end of June 2023, the transfer of approximately 2,400 towers had been completed, and other mobile network operators (KDDI, Softbank and Rakuten) are now encouraged to utilise the sites.
Key Growth Strategies
The statement noted that the purchase of telecommunications towers and the enhancement of infrastructure-sharing by attracting new tenants are key growth strategies for JTower. This transaction will further strengthen the business.
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Going forward, JTower and Docomo will continue to transfer tower ownership to accelerate infrastructure sharing. Docomo is actively working to establish a 5G Network by promoting infrastructure sharing, and this transaction will support the early deployment of 5G networks.
The infrastructure will be utilized effectively to benefit from more efficient capital investments, lower operating expenses for tenants, and reduced environmental impacts.
