At the recent TowerXchange Meetup MENA, a panel of leading experts gathered to discuss how changes to the relationship between MNOs and towercos are unfolding and what the future holds for the MENA region. Their conversation revealed the complexities of balancing financial objectives, operational independence, and the technical demands of a future led by 5G.
The shifting balance: independence vs partnership
One of the core themes of the discussion was how the relationship between MNOs and towercos has evolved in MENA, where towercos arrived later than in other regions. This created a unique set of challenges and opportunities. At TowerXchange Meetup MENA, industry leaders discussed this topic. Tom Greenwood, CEO of Helios Towers, noted that independence is key to a towerco’s success. “We’ve done deals where the MNO is essentially a financial investor, with no access to confidential information. That operational independence has worked very well for us, particularly in full buyout deals,” said Greenwood.
However, Greenwood also stressed that independence alone isn’t enough—it must be coupled with a close, day-to-day partnership with the MNO. “Whether you own the towerco or not, you need a partnership that’s more than just a supplier relationship. It’s about forward planning, anticipating needs, and working together as if you’re on the same team,” he explained.
This sentiment was echoed by other panellists. Khaled Muhtadi, CEO of LATIS, shared how Zain’s initial 20% ownership of its towers during a transition period allowed for a smoother handover to the Public Investment Fund (PIF). “That period helped ease the transition, giving us time to focus on infrastructure improvements and team specialisation before fully parting ways,” Muhtadi said.
The gradual separation, he argued, allowed Zain’s infrastructure team to focus on their core job: improving tower quality and making sharing arrangements more viable. But he also highlighted that in many cases, operators are still reluctant to fully let go of their tower assets.
Financial trade-offs and operational shifts
This leads to another key theme discussed during the panel: the financial and operational trade-offs that MNOs face when they divest their towers. MNOs have long held onto their tower assets as strategic infrastructure, but increasingly, financial considerations are driving them to offload these assets to independent towercos. This divestment frees up capital and executive attention for MNOs to invest in other areas, particularly 5G rollouts, but it can come at the cost of losing direct control over critical infrastructure.
Fawad Haider, CEO of Deodar, the towerco recently announced to be acquired by Engro Connect, pointed out that one of the challenges facing MNOs in the region is the reluctance to share rollout data with competitors, even when it might be beneficial for the larger network. “Competitors don’t want to share data with you, and that makes things tricky,” said Haider. He added that independence with Engro will give Deodar the flexibility to monetise their sites without the operational complexities that arise from MNOs retaining partial control.
On the flip side, Ilya Kiykov, Sr Vice President of M&A at e& group, stressed that there isn’t a universal recipe for success when it comes to divesting towers. “Every market is different, and there’s no one-size-fits-all solution,” he explained. Kiykov shared an example from Europe where e& holds a majority stake in CETIN, an independent towerco, while maintaining operational control. “In some markets, attracting a minority partner makes more sense, while in others, we might want a strategic partner. It’s about optimising future investments.”
The rise of active infrastructure sharing
As the conversation shifted toward infrastructure, the panellists discussed the technical and operational challenges posed by 5G. One of the most interesting points raised was the growing trend of active infrastructure sharing, where MNOs share not just passive infrastructure like towers but also active equipment such as antennas and network electronics.
Abdulrahman Al Moaiqel of TAWAL highlighted the benefits of active sharing, particularly in areas with less congested networks. “On sites that are uncongested, it makes sense to offer active sharing from an anchor tenant,” he explained. “In some cases, towercos like TAWAL can go even further by acting as a netco, essentially managing the network infrastructure on behalf of the MNOs.”
However, Ilya Kiykov offered a more cautious perspective on active sharing. “It’s not always the right solution. Passive sharing requires fewer interventions, but active sharing is more intricate and demands a higher level of trust between partners,” Kiykov said. Still, both agreed that when done correctly, active sharing can lead to greater efficiencies and lower costs for operators as they build out their 5G networks.
Future growth and regional expansion
Garth Self, EVP of TASC Towers told the audience, “being a multi-country rowerco allows for customer synergies, and we’ve developed standardised Master Lease Agreements across markets.” However, he acknowledged that lease-up rates in MENA are still lower than in other regions due to the late entry of towercos, with many operators already having rolled out 4G and 5G networks independently.
In Saudi Arabia, Khaled Muhtadi mentioned that LATIS is focused on deploying 2,500 new macro towers in the next few years, driven by the demand for 5G infrastructure. Additionally, Abdulrahman Al Moaiqel noted that TAWAL has rapidly grown its in-building solutions (IBS) and smart pole offerings, becoming a key intermediary between operators and construction companies in Saudi Arabia’s megaprojects. “Operators prefer dealing with a towerco rather than a construction company, and that’s allowed us to grow our services rapidly,” Al Moaiqel said.
Conclusion: a collaborative future for MENA telecom
The discussion made it clear that the relationship between MNOs and Towercos in MENA is one of increasing collaboration. The financial benefits of divesting tower assets are undeniable, but so is the need for Towercos to operate independently while maintaining strong operational partnerships with MNOs. As 5G networks continue to roll out, towercos are poised to play an even larger role, not only in managing passive infrastructure but in offering value-added services like edge computing and active sharing.
With this evolving landscape comes a greater focus on long-term relationships, operational excellence, and the ability to adapt to each market’s unique needs. As the Towerco model matures in MENA, both operators and towercos will need to strike a delicate balance between independence and partnership—building the future of the region’s telecom infrastructure together.
