KUALA LUMPUR (May 7): Telecommunication tower company (towerco) OCK Group Bhd has entered into a 15-year tower leasing agreement with Best Telecom Co Ltd, marking its entry into Laos, where Best Telecom plans to launch their 5G network by the end of the year.
According to a statement on Tuesday (May 7), OCK said the agreement with Best Telecom marked the group’s "official" entry into Laos, though the deal's value remains undisclosed.
"This strategic move marks the group’s official entry into Laos.
“To kickstart the deployment, OCK was awarded several clusters of sites located within the metropolitan area of Vientiane and a few major cities where the group will build and lease telecommunication towers to Best Telecom over 15 years, providing a long-term recurring income stream to the group,” the group said.
Back in October 2022, OCK and Laos Ministry of Finance (MOF) inked a shareholder agreement to set up a joint venture company, OCK Laos TowerCo Co Ltd, where OCK holds a majority stake of 70% while the ministry holds the remaining 30%.
After the agreement, OCK Laos TowerCo was expected to apply for a tower licence in Laos.
This latest development with Best Telecom further solidifies the group’s position as a regional telecommunication tower in the region, according to OCK Group managing director Datuk Wira Sam Ooi Chin Khoon.
Ooi noted that OCK’s expertise as a regional towerco, coupled with Best Telecom’s local presence and 5G ambitions, is ready to unlock significant opportunities within the Laos market.
“The group will continue to expand its regional presence, riding on the rising wave of 5G technology along with the ever-growing demand for data connectivity and capitalising on exciting market trends,” he added.
Meanwhile, Ooi also noted that with OCK’s prior experience as a towerco in Vietnam and its similar telecommunication culture to that in Laos, the group believes this familiarity plays a crucial role in aiding it to replicate the same success in Laos.
“We would also like to take this opportunity to thank our shareholder, the Ministry of Finance Laos (Laos MOF), for their collaboration and support throughout this journey and making this milestone a reality,” he added.
Shares in OCK ended 2.5 sen, or 4.07% higher, at 64 sen, valuing the company at RM679.33 million.
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