Veon, the parent company of Banglalink, has entered into an agreement to sell approximately one-third of Banglalink’s tower portfolio in Bangladesh to Summit Towers for BDT11 billion (approximately US$100 million). The deal encompasses the transfer of over 2,000 Banglalink towers to Summit Towers, which is majorly owned by the infrastructure group Summit Communications. Additionally, the agreement includes a long-term service partnership between Banglalink and Summit Towers.
Banglalink’s CEO, Erik Aas, commented on the partnership, stating that it would allow the telecom operator to concentrate its efforts and resources on expanding and improving its digital offerings. This strategic move is in line with Veon’s broader objective to pivot from physical assets to a more focused digital operator model, as outlined by Veon group CEO Kaan Terzioglu.
Terzioglu explained that Veon’s operators across various markets are transitioning into asset-light digital operators. He highlighted that this particular transaction would enable Banglalink to concentrate on its primary business as a leading digital operator in Bangladesh. This shift is expected to enhance Banglalink’s capacity to meet growing demands in areas such as entertainment, education, healthcare, and financial services.
The completion of this deal is subject to regulatory approvals from the Bangladesh Telecommunication Regulatory Commission. Once finalized, the proceeds from this transaction, amounting to US$100 million, will be utilized to service Banglalink’s financial commitments and to achieve further cost efficiencies, according to Veon.
This sale signifies a significant step in Banglalink’s and Veon’s journey towards embracing digital transformation and operational efficiency, marking a pivotal shift in their business strategy in the telecommunications sector.
