- PRESS RELEASE
The total number of contracts for indoor Infra-Sharing solutions in Vietnam exceeded 200 buildings
Use case: AEON MALL Hai Phong Le Chan (Le Chan District, Hai Phong City, Viet Nam)
JTOWER Inc. (“JTOWER”) hereby announces that the total number of contracts for indoor Infra-Sharing solutions*¹ provided by our Vietnamese subsidiary, Southern Star Telecommunication Equipment Joint Stock Company (“SPN”), exceeded 200 buildings (total floor space of more than approximately 9.2 million square meters).
*¹: The number of buildings here is the number of buildings for which contracts with property owners have been concluded. It differs from the number of buildings for which the fee for mobile network operators has begun (recorded as revenues).
■ Background to business expansion in Vietnam – Entered in 2017. Expanded with the IBS asset purchase agreement and other strategies.
In July 2017, we entered the Vietnamese market by acquiring SPN, the largest IBS operator in Vietnam. In November 2020, SPN signed an IBS asset purchase agreement for 63 projects owned by THIEN VIET COMPANY LIMITED, an IBS operator in Vietnam. Currently, contract transfers are in progress, and our track record is expanding.
In Vietnam, the penetration rate of mobile phones is growing at over 100% in line with high economic growth, and demand for mobile communications infrastructure is also continuing to rise. In particular, the IBS market continues to expand against the backdrop of an increase in mobile data traffic and the demand to improve capital efficiency among mobile network operators. In the future, the demand is expected to grow even further as 5G commercial services begin full-fledged operations.
■ Future growth strategies – Promote M&A and purchase of IBS assets, aiming for further expansion
In Vietnam, we aim to expand the number of installations by leveraging JTOWER’s relationships with Japanese companies backed by its track record in Japan and advanced technological capabilities, in addition to SPN’s strong relationships with Vietnamese mobile network operators, high-quality operations, and a broad network with real estate companies in Vietnam.
Furthermore, there are many IBS operators against the backdrop of expanding demand for mobile communications infrastructure in Vietnam. Going forward, we will continue to strive to increase our presence in the Vietnamese market by strategically promoting M&A and the IBS asset purchase to contribute to the further digitization in Vietnam.
We will further refine our technologies, service, and business models that we have cultivated in the Japanese telecommunications industry, which boasts the highest quality in the world, with the aim of providing “the leading Infra-Sharing services in the world”.