KPN has reached an agreement with the pension fund, ABP, to establish a new tower company (TowerCo). According to the Dutch operator, this initiative aims to maximize the value of its infrastructure assets while maintaining the top digital infrastructure in the country.
The operator announced that the TowerCo will manage and operate 3,800 towers and rooftop sites across the Netherlands, encompassing KPN's passive mobile infrastructure assets and those from ABP's portfolio company, OTC.
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As part of the agreement, the TowerCo will also take control of NOVEC, an infrastructure provider owned by the Dutch electric grid company, TenneT.
Overall, the TowerCo will manage about 60 percent of KPN’s mobile infrastructure. Additionally, KPN and the joint venture have signed a master services agreement (MSA), ensuring KPN remains a tenant of the tower company for the next 20 years.
Moreover, the agreement includes a ten-year, build-to-suit commitment for the deployment of new sites.
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KPN will hold a 51 percent stake in the TowerCo, while ABP will own the remaining 49 percent. Additionally, KPN has agreed to pay EUR 120 million in cash to the shareholders of NOVEC and OTC.
In its statement, KPN highlighted that with the rising data consumption and the deployment of new technologies, “there is an increasing need for [a] strong and stable grid of mobile sites providing continuous coverage in the Netherlands."
“Following ongoing demand for network growth and densification, increasing direct exposure to Dutch passive telecom infrastructure is strategically imperative for KPN,” it added.
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