As part of its drive to support digital transition in the Western Balkans, the European Bank for Reconstruction and Development (EBRD) has joined a consortium of international investors led by Actis. The consortium, including the International Finance Corporation (IFC), will acquire approximately 1,800 mobile towers from Serbian state-owned telecoms operator Telekom Srbija that are spread across Bosnia and Herzegovina, Montenegro and Serbia.
The project will establish the first independent mobile tower group headquartered in the Western Balkans. In line with international best practise, the new company will facilitate enhanced infrastructure sharing between mobile network operators in the region. Increased tower sharing, also known as colocation, will contribute to the development of mobile technologies, including a swift roll-out of the 5G standard and better network coverage.
“This investment provides the capacity to meet increasing demand for reliable mobile services in the three countries and enables the transfer of state-owned telecoms infrastructure into private ownership,” said Holger Muent, an EBRD head of telecommunications, media and technology. “Supported by strong international investors, the independent mobile tower company will be well-placed to boost innovation and market competition.”
Furthermore, Muent added that the transaction will lead to increased efficiency and sustainability of the company’s telecoms infrastructure, as well as facilitate the implementation of best corporate governance standards.
To date, the EBRD has invested more than €17 billion in the Western Balkans, most of which supported the private sector. The Western Balkans is a priority region for the EBRD, where the Bank remains the largest institutional investor.
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