OCK finalising purchase of towers and stations


PETALING JAYA: Telecommunica-tion services network provider OCK Group Bhd is close to finalising a deal to purchase a few mobile-transmission towers and rooftop stations.

A source said that the towers and stations were likely to be bought from mobile operator U Mobile Sdn Bhd.

When contacted, OCK Group Bhd managing director Sam Ooi confirmed that it was in discussions with several telecom operators on this but declined to elaborate.

U Mobile, meanwhile, said it could not comment “at this time.”

It is understood that OCK’s interest in this type of assets are for the recurring income from leasing the towers and stations out to different mobile operators.

How much income can be generated per lease remains unclear although the cost of buying one tower or rooftop station is estimated at around RM250,000 to RM350,000.

Currently, OCK derives most of its income from network planning, design and optimisation services.

In the case of U Mobile, sources said it was considering this “sale and leaseback” model in order to improve its cash flows.

An industry player estimates that there are more than 20,000 transmission towers and rooftop stations nationwide.

Currently most of these are owned by mobile-phone operators. As operating and maintaining such towers and stations require capital and operational expenditure, it has been reported that some are looking to sell these assets amid increasing competition among telecom operators.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: -1
Cxense type: NA
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

Ekuinas records strong investment returns for 2020
FBM KLCI closes at year's low
China says it will take necessary measures to safeguard Chinese firms' interests
Astro signs Netflix as new streaming partner
Boustead's three-pronged strategy to reinvent itself
Oil gains as draw in U.S. crude stocks reinforces outlook for robust demand
Singapore files 105 new charges against oil trader Hin Leong founder O.K. Lim
Asian shares tread water, markets eye U.S. inflation signals
Benigno Aquino steered Philipines' economy to recovery, says ex-secretary of finance
OMH to increase funding in Bryah Basin manganese JV

Stories You'll Enjoy


Vouchers