In this interview we dive deeper into Actis’ tower plans in Central and Eastern Europe. Telekom Srbija sold its towers to Actis in January 2024 and Actis has now announced its new brand and leadership for Connectis Tower. Connectis Tower aims to be a leading independent tower platform in the Balkans and wider region, operating an existing portfolio of 1,800 macro towers, including approximately 1,000 in Serbia, 700 in Bosnia & Herzegovina, and 100 in Montenegro. TowerXchange is delighted to speak to the mastermind behind this expansion Jaroslava Korpanec, Partner and Head of Central and Eastern Europe, Actis.
TowerXchange: Please introduce Connectis Tower and yourself to our audience.
Jaroslava Korpanec, Partner and Head of Central and Eastern Europe, Actis
I have been doing infrastructure investing since before it was fashionable. I joined Actis in September 2022 as Partner and Head of Central and Eastern Europe to build the infrastructure business in CEE with specific focus on energy and digital infrastructure investments.
Prior to joining Actis I spent almost 15 years at Allianz Capital Partners, the asset management arm of Allianz the insurer. I was one of three founding partners who established the infrastructure asset management business with a focus on a long term buy and hold strategy. During my time there, we grew infrastructure assets under management from zero to over 11.5bn euro of equity. I led investments across utilities, transport, energy and digital sectors, including fibre and telecoms. At Actis, I have the opportunity to build on that experience with an infrastructure strategy focused on asset development and growth in the CEE region.
Connectis Tower is the carve-out of the whole telecom tower portfolio of Telekom Srbija. It is now one of the largest tower operators in the Balkan region, with the ambition to become partner of choice for MNOs in the region by developing a truly neutral platform.
TowerXchange: Congratulations on the launch of the towerco. Who are in the management team leading Connectis Tower?
Jaroslava Korpanec, Partner and Head of Central and Eastern Europe, Actis
We have hired an industry veteran to lead the towerco: Bogdan Djukic. Djukic has been with us since February. We have also hired Jovana Nikolic, another industry veteran to join Connectis Tower as Group CFO. Djukic has worked on the management team of A1's carve-out EuroTeleSites, with a background at Ericsson and A1 in Serbia. Nikolic worked as CFO of a technology scale-up where she led fundraising efforts and served as a member of the executive management team. (You can read about the official announcement and more biographic details here.) Jim Eisenstein is Chair of Connectis Tower.
Connectis Tower’s management is focusing on building the Connectis Tower team by recruiting leaders for HR, commercial, business development and engineering. That team will enable us to build on the existing platform, to strengthen the relations with MNO clients, and deliver on the build-to-suit pipeline we have agreed with Telekom Srbija. The towerco will be developing internal capabilities as much as possible rather than relying on advisors or consultants.
ToweXchange: What are the towerco’s plans and how do you see it fit in the region’s infrastructure ecosystem?
Jaroslava Korpanec, Partner and Head of Central and Eastern Europe, Actis
When you look at the region, independent towerco development is still very nascent. There are some towercos active, but many are operator-backed. We see a real opportunity to create an independent platform and differentiate ourselves. As you and your readers will know, you cannot underemphasise the importance of true neutrality for a tower operator.
We own a good portfolio of towers but are also looking at other technologies like small cells and DAS. Ultimately, in our push to help the industry become more sustainable we might look at how to introduce clean energy generation into the mix; that’s not an immediate priority but something that will be of increased importance to us.
5G is not available in our markets yet, but we will be adapting and upgrading our sites to make sure they are ready to take more equipment for when MNOs in the region will be rolling out 5G.
Connectis Tower is still young, but we will be developing diversified services for MNOs, as well as expanding organically though build-to-suit and enter new markets when the time is right.
TowerXchange: Can you expand on any plans for the company to expand its footprint?
Jaroslava Korpanec, Partner and Head of Central and Eastern Europe, Actis
Connectis Tower plans to expand organically and inorganically. For example, by the end of 2024 the platform will grow to 1,900 towers through our build-to-suit agreement with Telekom Srbija, which is why our management must hit the ground running and build new macros in attractive locations.
Entering a new region is always challenging. Our first priority has been establishing ourselves as a neutral operator and communicating that to our MNO stakeholders. Our second priority is to deliver our build-to-suit programme with Telekom Srbija. While at the same time we are exploring roll-up opportunities from independently owned towers in our markets. There are smaller independent tower operators and some towers owned by individuals which we can acquire, upgrade, and offer for lease-up to bring efficiency to the network.
Beyond that we will look at other markets in the region and look to expand the geographic reach of our platform. We will do this selectively, and only do so if it enhances the value of the platform to our key stakeholders, our MNO tenants and delivers value to our investors.
TowerXchange: Two of the countries within the towerco’s remit have no other towercos. Do you see this as challenges or as opportunities, and why?
Jaroslava Korpanec, Partner and Head of Central and Eastern Europe, Actis
In Montenegro and Bosnia and Herzegovina the transaction has been positively received. The entrance of a new independent towerco to a market really enhances the services that can be provided to MNOs. They see the benefit of having an independent operator.
In addition to our independence, they welcomed a towerco with significant capital behind it which allows them to invest confidently, knowing that capex is available to invest in passive telecom infrastructure. It allows the MNOs to focus on the growth and development of their businesses which is much more individual customer facing.
TowerXchange: In addition to telecom infrastructure, Actis is an active player in the green energy sector in CEE (i.e. through Rezolv Energy, Uludağ Energy). Are you able to share if your strategy in the region will focus on developing energy and telecoms separately or do you anticipate any convergence of the two?
Jaroslava Korpanec, Partner and Head of Central and Eastern Europe, Actis
This is so important. Actis builds and operates a platform across multiple assets. Investors will play a significant role in the conversation around energy consumption and generation mix in CEE. We are active participants in enabling the energy transition in the jurisdictions in which we’re invested. We are already discussing getting involved in the energy markets where Connectis Tower is operating.
There will be opportunities to explore integrating renewable energy generation with towers, which will continue to enhance the Connectis Tower offer with renewable power generation and energy back-up, but that will come in the future. At present we own the towers and passive infrastructure, but not energy equipment at our sites. It is more important to establish our platform and deliver BTS before jumping into offering cell site energy.
TowerXchange: Actis has also recently invested in a towerco in South Africa and has other plans for growth. What makes tower investments attractive or enticing to Actis and how do you plan to make things work in such diverse markets?
Jaroslava Korpanec, Partner and Head of Central and Eastern Europe, Actis
It is about expertise and how you manage your tower portfolio. Whether you are active in a larger or smaller market you still have to get the basics right. The challenge is about whether you can assemble a good team, understand the strategy of your customers, develop a culture of sharing in your market and tap into the right talent locally.
There are similarities in managing tower portfolios in CEE and South Africa, and in other markets around the world which is why we’ve built a team at Actis that enables us to grow. For example working with former Phoenix Tower International leader Mauricio Giusti, or our industrial adviser Jim Eisenstein. We are building a platform to grow. We are excited to build good businesses and apply the principles of effective tower sharing to our markets.
