Forming the Largest Tower Company in MENA: Ooredoo, Zain, and TASC’s Ambitious Venture
A Pioneering Joint Venture in Telecommunications
In a significant move within the telecommunications industry, Qatar’s Ooredoo, Dubai’s TASC Towers, and Kuwait-based Zain Group are in discussions to merge their mobile tower assets. This collaboration aims to create an independent company that would emerge as the largest tower company in the Middle East and North Africa (MENA) region.
Spanning Six Countries with 30,000 Towers
The proposed joint venture would consolidate around 30,000 towers across six countries: Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan. The primary focus of this new entity would be on enhancing operational efficiency, creating synergies, and reducing the carbon footprint in the region.
A Strategic Focus on Infrastructure and Sustainability
The joint venture plans to deliver “infrastructure-as-a-service” across the MENA region, prioritizing operational efficiencies and environmental sustainability. Ooredoo and Zain will maintain their active infrastructure, including wireless communication antennas and network management technologies.
Enhancing Shareholder Value
The operators believe that this new venture, with its efficient capital structure, will significantly enhance shareholder value for both groups.
Timeline for the Deal
If negotiations proceed smoothly, the signing of this cash and share deal is anticipated to occur in the third quarter of this year. However, the deal is subject to customary regulatory approvals, and the specifics of the ownership structure are yet to be determined.
Ooredoo and Zain: Regional Telecom Powerhouses
Ooredoo, with revenues reaching QAR 23 billion ($6.2 billion) in 2022 and a 2% revenue increase in the first quarter of this year, operates in eight countries in the MENA region and beyond. Meanwhile, Zain, Kuwait’s leading operator, serves approximately 53 million customers across seven countries. The collaboration between these telecom giants marks a significant milestone in the regional telecommunications landscape.