EDOTCO renews lease with CelcomDigi

EDOTCO renews lease with CelcomDigi

Telecommunication tower with 5G cellular network antenna on city

Malaysian towerco EDOTCO has renewed its lease with Malaysia’s largest mobile operator, CelcomDigi.

Celcom is a joint venture between EDOTCO’s parent company Axiata and Norwegian operator Digi that was formed when a merger between the two companies was completed in 2022.

Following the completion of the merger, the two mobile operators are focused on consolidating their mobile networks.

EDOTCO said the renewed agreement is a cornerstone in supporting the ongoing CelcomDigi merger and network consolidation. It resets the towercos contractual framework for the next decade as Malaysia and the wider South East Asian region prepares for major technological advancements like 5G rollouts.

In addition to supporting network consolidation, the agreement is also touted to support the hyper-growth of data use in Malaysia, which is expected to triple over the next ten years, as well as the reshuffling of spectrum.

The CelcomDigi merger means it is reshaping its 4G network, but due to Malaysia’s use of a wholesale network for 5G, it will not be building its own 5G sites.

Instead the telco is becoming a shareholder in the DNB, the first wholesale network in Malaysia. A second is planned to launch this year.

Capacity has learned that under the terms of the conditions agreed, EDOTCO have secured preferred towerco status from CelcomDigi and a commitment for new sites has been arranged.

Furthermore, EDOTCO have refrained from charging a penalty for the decommissioning of existing sites, instead allowing tenancies to be swapped to new towers where the network consolidation makes sense.

The company has also defined next generation technology offerings such as small cells and in building solutions.

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