ISLAMABAD: In a first-of-its-kind move, Engro Connect has acquired all 10,500 telecom towers owned and managed by Jazz.
After obtaining approvals from relevant regulators, including the Competition Commission of Pakistan, and clearing all cases in the Islamabad High Court, the $560 million deal has materialised.
Jazz, the largest telecom operator in the country, has become the first telecom to offload all of its telecom towers. Deodar, the cell-site tower management subsidiary of Jazz, has been sold to Engro Connect.
However, Jazz will pay rent for all the cell sites installed at these towers to Engro Connect, a subsidiary of Engro Corp.
Move to establish ‘cells’ of multiple telecom operators at a single tower
The deal was one of the most significant private-sector infrastructure transactions in the country’s digital evolution. Jazz was currently using around 14,500 telecom towers; other tower companies, including Engro Enfrashare, the largest independent tower infrastructure company in Pakistan, and Edotco managed the remaining 4,000 towers.
Meanwhile, TAWAL Pakistan, a Saudi-based company, has recently launched its operations as the fourth ‘towerco’.
A senior official of the company stated that the telecos invested heavily in the tower around 20 years ago, as there was no infrastructure available at that time, and the strength of the telecos was measured by their coverage areas and the number of subscribers.
Meanwhile, Jazz CEO Aamir Ibrahim has said, “As we pivot to a digital-first future, this milestone enables us to remain asset-light while doubling down on what we do best — delivering impactful, tech-driven solutions for Pakistan’s evolving needs.”
He added that the company would focus on being a full-fledged service, with a portfolio spanning fintech, cloud, entertainment, and digital health.
The concept of towercos was gaining popularity globally as they have become experts in infrastructure development and management by taking on the responsibilities of paying annual taxes and duties for towers, power supply, generator management, and security.
Under this concept, a towerco can establish the ‘cells’ of multiple telecom operators at a single tower.
Currently, there are around 50,000 telecom towers in the country, and it is expected that as the concept of tower companies grows, other telecom operators will also offload their tower management responsibilities.
A senior official from the IT ministry stated that while it is anticipated that many towers will be consolidated in urban areas, the overall number of towers will increase in several new regions where telecom services have not yet been established.
“But it was less likely that Telenor and Ufone would make such a decision soon — as their merger was underway and many business decisions of both the companies were on hold till the CCP decides on merger,” the official added.
Apart from the telecoms, telecom towers are also becoming key interchanges for the optical fibre network, and many fibre companies and internet service providers are also paying rent to the tower operators for internet cable services.
Published in Dawn, June 7th, 2025
