TowerCo JV will own and operate 3,800 towers and rooftop sites in the Netherlands, said KPN

Dutch operator KPN and pension fund ABP have signed an agreement to create a new tower company in the Netherlands.

In a release KPN said that this strategic partnership is in line with its “Connect, Activate & Grow” strategy to optimize the value of its passive infrastructure assets.

“With the increasing consumption of data 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,” the company said.

The operator stated the TowerCo JV will own and operate 3,800 towers and rooftop sites in the Netherlands, representing KPN’s passive mobile infrastructure assets as well as those of ABP’s portfolio company OTC. As part of the deal, the TowerCO JV will also control Novec, an infrastructure provider owned by Dutch electric grid company TenneT.

TowerCo and KPN have entereda long-term master service agreement, stipulating the terms under which KPN will continue to be a tenant of TowerCo for an initial period of 20 years. TowerCo also aims to further increase tenancy levels of its network by providing access to attractive and fully modernized towers and rooftops, KPN said.

“Through the transaction, KPN gains higher flexibility over a substantial part of its mobile sites, enabling strategic synergies regarding the deployment, maintenance, and optimization of the network infrastructure. This flexibility allows KPN to ensure that its mobile network continues to meet the performance standards required to deliver high-quality services to subscribers, to accommodate new technologies, such as 5G and to expand coverageunderserved areas,” the carrier said.

“It also allows for the harmonization of contractsa futureproof agreement covering nearly 60% of our tower and rooftop portfolio. As part of the transaction some of the existing lease terms have been reset,” KPN added.

The new tower entity will compete with Cellnex Netherlands, which was established in 2021, when Cellnex and Deutsche Telekom finalized a deal to merge their respective tower businesses in the Netherlands.

Following the completion of this merger, Cellnex currently operates a total of 4,318 towers in the Netherlands.