The news comes as NTT and JTOWER have been exploring measures, including the use of existing infrastructure, to deliver “provide efficient and economical infra-sharing solutions” for the telecoms sector.
This collaboration is driven by the expansion of 5G networks, which will underpin future social infrastructure, and in turn requires the deployment of a significant number of base stations compared to 4G.
As part of these initiatives, the two companies inked a master transaction agreement for NTT to sell 71 of its telecoms towers to JTOWER. Under the terms of the agreement, the contracts of the existing tenants of each tower will be transferred from NTT West to JTOWER in September 2021.
In addition to the indoor infra-sharing and the outdoor tower sharing, JTOWER has adopted carve out - the acquisition of a subsidiary, division or other smaller part of a larger business enterprise - of existing towers owned by telecoms companies as one of its key growth strategies.
JTOWER says it will further expand carve out transactions for telecoms towers owned by telco companies. Also, as infra-sharing provider, JTOWER says it will promote the effective use of critical infrastructure by bolstering its business activities by attracting telecoms companies, including mobile network operators.
Under the terms of the agreement, NTT Group will provide JTOWER as well as telcos working with JTOWER, with services by the NTT Group, such as 5G optical fibre and NTT's telephone office building spaces need for the installation of telecoms equipment.
In addition, NTT Group will use its experience in the telecoms space to support operations such as the construction and maintenance of the network, to contribute to the early development of 5G networks and to optimise capital expenditures.
