Mobily and STC agreement on towers joint venture

Mobily and STC agreement on towers joint venture

towers joint venture

Mobily, STC starts talks on towers joint venture

Mobily on Sunday entered talks with Saudi Telecom Company (STC) that they have signed a deal to jointly explore options for their network towers joint venture.The main objective of the deal is for extracting value from their respective telecommunications tower portfolios throughout the Kingdom, with the objective of reducing their capital and operating expenditures, they said.

The MoU is effective for three months starting 31 July, and can be extended for consecutive periods of 30 days upon agreement by both parties.Zain was not mentioned by name in Mobily’s announcement on Sunday; however, the statement did say that Mobily and STC “may also consider involving other licensed operators in the assessment to the extent that their objectives align with those of Mobily and STC.”

The talks with Mobily follow reports that STC was also considering a sale-leaseback of its towers.The other Saudi Arabian operator Zain was also asked to consider the towers joint venture.