The agreement ensures a further 1,552 DOCOMO towers will be transferred to the Japanese towerco and in-building solution provider following an initial deal made in March 2022.
Back then, JTower and NTT Docomo agreed to the gradual transition of 6,002 telecoms towers. NTT would net $870 million from the transaction and JTower would secure revenue in the form of long-term leases and the potential to offer colocation to Japan’s other mobile network operators.
Today’s agreement will be worth $114 million.
NTT said it is actively working to build a viable 5G network by promoting infrastructure sharing and this transaction will enable further streamlining of its network operations.
JTower said the purchase of telecommunications towers and the enhancement of infrastructure-sharing by attracting new tenants is one of JTOWER's key growth strategies. This transaction will greatly strengthen its business foundation as a tower sharing operator.
By the end of June 2023, the transfer of approximately 2,400 towers had been completed, with JTower actively marketing the locations to KDDI, Softbank and Rakuten.
Despite being an advanced mobile market, infrastructure sharing in Japan has been limited and the vast majority of towers are still in the hands of MNOs.
However new coverage requirements and a push to move to 5G SA is changing the approach of the MNOs, and further sharing is expected to develop.
“We are in conversations with all the MNOs in Japan about further sale and leasebacks, and we are in a good position to buy the towers from them if the economics make sense for both sides. The 6,002 tower sale from NTT Docomo might very well be the first domino to fall,” Atsushi Tanaka, JTower’s CEO, said in an interview with TowerXchange earlier this year.
