Qatar and Kuwait Telecom Groups Complete Integration of 4,000 Communication Towers

en.Wedoany.com Reported - On October 22, Qatar's telecom group Ooredoo and Kuwaiti telecom operator Zain Group announced the completion of the first closing of their regional communication tower asset transaction, incorporating approximately 4,000 communication towers under Qatar's Al Abraj and Kuwait's ITK into a jointly held regional infrastructure platform. The two parties each hold a 50% equity stake in the platform. The first batch of assets covers the Qatari and Kuwaiti markets, with operations focused on the operation and leasing of passive telecom infrastructure such as communication towers.

This closing involves the communication tower assets of Al Abraj under Ooredoo Qatar and ITK under Zain Kuwait. Following the integration, the two groups will manage the relevant passive infrastructure through an independently operated platform and gradually establish an infrastructure-as-a-service business for telecom operators. Ooredoo and Zain will continue to separately control their respective active communication networks, including wireless communication equipment, network operation software and related intellectual property. Their existing mobile communication businesses will remain under their respective operating systems.

The regional communication tower integration plan began in December 2023, when Ooredoo, Zain and TASC Towers Holding signed a formal agreement to integrate approximately 30,000 communication towers across six markets: Qatar, Kuwait, Jordan, Iraq, Algeria and Tunisia. The original transaction plan involved an overall enterprise valuation of approximately USD 2.2 billion, with expected annual revenue of approximately USD 500 million after full integration of the assets in the six countries. The closing of approximately 4,000 communication towers this time represents the first batch of assets under the regional integration plan, and the USD 2.2 billion figure reflects the valuation basis of the overall 2023 plan.

Regulatory approval was a key step in this first closing. The Kuwait Competition Protection Authority approved the economic concentration matter related to the communication tower joint venture transaction in September 2026, and Qatar's communications regulatory authority and municipal authorities also participated in the local approval process. Subsequent asset portfolios will be incorporated into the platform in batches in accordance with the transaction conditions and regulatory approvals of each market, while assets in other countries under the regional integration plan will continue to proceed through their respective procedures.