The Tele2 Group and an investment partner from the United States, Global Communications Infrastructure LCC (GCI), have announced plans for the first pan-Baltic company which will invest in networks in all three Baltic States.
Over the next decade, this will be a major leap in Tele2’s network investments, thus providing for better coverage and improved consumer experiences, the company declared in a news release.
The collaboration with the investor will allow Tele2 Estonia to deliver high-quality connectivity in the country even more quickly, doing so even in areas which were previously more difficult to reach.
Tele2 Estonia CEO Margus Nolvak says that the US investor will support the region’s geopolitical health, adding that the investment’s impact will be directly reflected in the quality of services which are provided to consumers in Estonia.
“The partnership will allow us to invest much more in the expansion of our network, which means that we will be able to offer our customers even better user experiences,” the CEO claims.
One result of the collaboration will be the establishment of the first tower company which will cover all three Baltic countries – TowerCo. It will manage nearly 2,700 mobile towers and rooftop infrastructures in Estonia, Latvia and Lithuania.
As part of the deal, Tele2 will transfer is entire passive mobile coms infrastructure – masts, support structures, station rooms, rooftop sites – to the new enterprise, and TowerCo will take on responsibility for their maintenance, management and expansion.
Tele2 will retain the active part of its network, including antennae, mobile communications and transmission network equipment. Tele2 will be TowerCo’s anchor customer under a 20-year master service agreement. This will ensure the company’s long-term and secure access to critical infrastructure.
Tele2 plans to use the resources which will be freed up from its mobile infrastructure to further develop its services and 5G network and growth in the Baltics. A 10-year investment plan has been agreed on the construction of new masts and rooftop sites, which will ensure that the development of the network will proceed at a much higher level than was the case before. It will support expansion of coverage, as well as improvements in service stability and speed.
Tele2 and GCI will be equal partners in the tower company with a 50/50 ownership stake. TowerCo is valued at EUR 560 million, of which Tele2 expects approximately EUR 440 million in cashflow. The plan is to complete the deal in early 2026. Until then, Tele2 will continue to develop its own network and roll out new services in Estonia as planned.
Global Communications Infrastructure LLC is an international tower company platform which invests in telecoms infrastructure throughout the world. The company focuses on high-quality, energy-efficient and large-scale network infrastructure which helps mobile service providers to expand their network coverage and to improve the quality of their services.
Source: BNS
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