By Juan Pedro Tomás
JTower and NTT Docomo have decided to enter into a master transaction agreement with the aim of promoting infra-sharing of the latter’s existing towers.
The contract will enable the companies to make a transaction in which 6,002 telecommunications towers owned by mobile operator NTT Docomo will be transferred to JTower. NTT Docomo will lease these towers from JTower as part of the deal.
“JTower positions the purchase of existing telecommunications towers owned by telecommunications companies and the promotion of infra-sharing by attracting new tenants to these towers to be one of the key growth strategies. The transaction will greatly expand its business foundation as a tower sharing operator,” the company said in a release.
Meanwhile, NTT Docomo said it is working to build an economical 5G network by promoting infrastructure sharing, adding that the transaction will enable further streamlining of network operations.
“The companies plan to make the transfer of the towers where conditions have been met and JTower will strengthen its efforts to attract new tenants, such as telecommunications companies, including mobile network operators. Through these efforts, both companies aim to realize more efficient capital investments and operating expenses for the tenants of these towers and promote the early deployment of 5G network,” the two companies said in a release.
JTower and Docomo also said they will continue to strengthen collaboration in the field of infra-sharing and work to resolve social issues that contribute to the telecommunications industry.
NTT Docomo started using the JTower’s infra-sharing solution for its 4G network in 2016 and has expanded the use of the solution nationwide. Furthermore, from October 2020, the company started using 5G IBS at the time JTower installed 5G IBS in the Tokyo Metropolitan Government as the first 5G infra-sharing solution in Japan, and also began using smart poles in the Nishi-Shinjuku area of Tokyo. Both companies said they have continued to promote the use of infra-sharing through these activities.
In October 2021, Japanese mobile operator Rakuten Mobile and JTower entered a capital alliance with the aim of sharing infrastructure in indoors and outdoors environments.
Under the terms of the deal, the two companies will share equipment and towers to boost the development of 4G and 5G networks across Japan.
JTower also noted that the use of shared infrastructure enables network development in a short period of time and at a low cost compared to when each mobile network operator installs their own networks separately. “In order to contribute to the development of a broader network, in 2020, we realized the first 5G indoor Infra-Sharing in Japan at the Tokyo metropolitan government headquarters building and in outdoor, we are strengthening our structure by launching new businesses such as tower sharing covering rural areas and smart poles mainly in urban areas,” the company said.