Credit: IDG
2degrees is selling its passive mobile tower assets to Connexa and its funder the Canadian Teacher’s Pension Plan for $1.08 billion.
2degrees CEO Mark Callander said the move would enable further investment in the company’s 5G build and increase the focus on 2degrees’ core business.
“Today’s sale of 1124 towers will allow us to focus more on, and continue to invest in, innovative solutions and services for Kiwis while realizing the value of our passive mobile assets,” Callander said.
Credit: Supplied In addition, 2degrees committed to another 450 locations with Connexa to provide greater coverage and network density for 5G.
Connexa was formed following the sale of a 70 percent stake in Spark’s passive mobile tower infrastructure assets to Ontario Teachers’ in July 2022. That transaction closed in October.
Connexa CEO Rob Berrill said the addition of 2degrees’ mobile towers and the committed build program would deliver greater operational efficiencies through increased infrastructure sharing.
This would mean fewer unnecessary mobile tower builds and faster deployment of towers to improve network coverage and capacity.
“Our model is to focus on serving our customers through a long-term approach to asset management, and increasing asset utilization and performance, and we’re excited to bring that same approach to 2degrees’ mobile towers,” he said.
Credit: Supplied 2degrees will continue to own the active elements of its network, including the radio access equipment, spectrum assets, transmission and backhaul.
“The network we have built is phenomenal, but towers and real estate is not where we innovate,” Callander said.
“What we do with the active network layer is key and will continue to be the focus of future investment – this is where we will differentiate and grow.”
2degrees has entered into a 20-year agreement with Connexa (plus rights of renewal) to secure access to existing and new towers.
Completion is subject to approvals from the Overseas Investment Office and Commerce Commission and is anticipated in the middle of next year.
Vodafone New Zealand and its institutional shareholders sold the telco’s 1484 passive mobile tower network for $1.7 billion in July.
The buyers, subject to approvals and conditions, were a consortium of funds managed or advised by global investors InfraRed Capital Partners (40 percent) and Northleaf Capital Partners (40 percent).
NZX-listed Vodafone shareholder Infratil will reinvest to hold the final 20 percent.
Tags VodafoneTelecommunications2degreesConnexapassive mobile tower assets
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