Once the towers are transferred, NTT Docomo will lease these towers from JTower
Japanese tower operator JTower and compatriot telecommunications operator NTT Docomo concluded a new master agreement aimed at facilitating the sharing of Docomo’s current telecommunication tower infrastructure in Japan.
Under the terms of the agreement, the ownership of an additional 1,552 Docomo towers will be transferred to JTower for a total of of JPY17 billion ($116 million), with Docomo subsequently leasing the towers from JTower.
In March 2022, the two Japanese companies had entered into the master transaction agreement allowing the transfer of 6,002 of Docomo’s telecommunications towers to JTower. The addition of this new agreement will enable the towers to be used for a wider range of applications, facilitating the further sharing of infrastructure, Docomo said.
By the end of June 2023, the transfer of approximately 2,400 towers had been completed and other Japanese mobile network operators are now being actively encouraged to make use of these, the carrier 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,” the company said.
“Docomo is actively working to build a viable 5G network by promoting infrastructure sharing and this transaction will enable further streamlining of its network operations,” Docomo said.
“Going forward, JTower and Docomo will continue transitioning the ownership of towers that meet the necessary criteria in order to accelerate infrastructure sharing,” Docomo added.
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,
JTower had previously 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 had said.
