TelcoNews New Zealand logo
Telecommunications technology news for New Zealand's largest enterprises
Story image

Vodafone $1.7b passive mobile tower sale to InfraRed and Northleaf

By Jessie Chiang
Mon 18 Jul 2022

Vodafone New Zealand, with its shareholders Infratil Limited and Brookfield Asset Management, has announced the sale of its passive mobile tower assets for $1.7 billion to global investors InfraRed Capital Partners and Northleaf Capital Partners.

Both companies will hold 40% of the assets each, with Infratil reinvesting to hold the remaining 20% in the new TowerCo.

Vodafone says the new TowerCo business has 1,484 wholly-owned mobile towers and will be the largest New Zealand towers business, covering over 98% of New Zealand’s population.

Under the terms of the deal, which is subject to Overseas Investment Office approval, the new TowerCo will enter into a 20-year master services agreement with Vodafone NZ (with extension rights).

This provides Vodafone with access to both existing and new towers and a commitment from TowerCo to build at least 390 additional sites over the next ten years to enhance Vodafone’s relative coverage and capacity position.

Vodafone says it will continue to own the active parts of its network, including the radio access equipment and spectrum assets, maintaining an industry-leading mobile coverage and network position.

The telecommunications company says the new TowerCo structure allows for separate and specialised ownership of the passive mobile towers, providing strong incentives to drive better capital efficiency, including increased co-location of equipment on common tower assets. 

It says this is essential as demand for data and connectivity continues to grow year on year, driving the importance of more intensified digital infrastructure to meet community needs. 

Infratil Chief Executive Jason Boyes says he’s delighted with the outcome.

“We have unlocked a significant portion of the value of our original equity invested in Vodafone, whilst retaining that investment and a 20% stake in TowerCo,” he says.

“InfraRed Capital Partners and Northleaf Capital are high-calibre investors who share our vision for what the new TowerCo can deliver across New Zealand. The transaction is a win-win for Infratil shareholders.”

Brookfield Infrastructure Managing Director Udhay Mathialagan says this transaction is a material milestone in executing its strategic program to increase the use of assets at Vodafone NZ.

“Releasing capital from the network when it makes sense and conditions are supportive and through targeted partnerships around infrastructure,” he says.

“This partnership will enhance site choices for wireless operators in New Zealand whilst supporting a strong return on our equity invested in Vodafone NZ three years ago.”

Vodafone CEO Jason Paris says Infratil, InfraRed Capital Partners and Northleaf Capital are outstanding investors who share the company’s vision for Aotearoa New Zealand and will help to accelerate the rollout of critical infrastructure for customers.

“This is a move that will further increase the coverage, capacity and speed of our network for our customers, making our Smart Network even smarter, which was recently awarded number one mobile network in New Zealand by independent benchmarking company Umlaut,” he says.

The transaction is expected to complete in the fourth quarter of the 2022 calendar year, subject to receipt of Overseas Investment Office approval.

Related stories
Top stories
Story image
Storage
DCI Data Centers breaks ground on AKL02 center
DCI Data Centers has commenced construction on Auckland's largest data center.
Story image
Gaming
Chorus announces Hyperfibre sponsorship deal with NZ Esports
Chorus has put its support behind New Zealand's Esports community with a newly announced three-year Hyperfibre sponsorship deal with NZ Esports.
Story image
Apple
2degrees unveils eSIM functionality for selected devices
2degrees has enabled eSIM functionality to work with a variety of Apple, Samsung and Oppo devices, including a range of iPads.
Story image
Cybersecurity
More than a fifth of cybersecurity teams ban the use of public WiFi
Verizon’s fifth annual Mobile Security Index report has revealed a continued rise in significant cyberattacks in the last year involving a mobile/IoT device.
Story image
Fibre
Orcon brings faster fibre to Christchurch with Hyperfibre offering
Orcon has today launched the next generation of fibre speeds in Christchurch, bringing its Hyperfibre offering to the city.
Story image
Infrastructure
Vodafone’s Mobile Virtual Network Operator open for business
Vodafone's Mobile Network Virtual Operator (MVNO) platform is now open for business, with the first new partner in My Republic having unveiled their mobile plans this week.
Story image
Internet of Things
Dunedin City Council uses Spark IoT network for new water measuring system
Dunedin City Council is using a new, smart water metering solution that it says will help to deliver the objectives of the Three Waters policy using Spark's IoT network.
Story image
5G Networks
Spark explores future connectivity options using 5G mmWave
Spark has carried out New Zealand’s first rural trial of 5G millimetre wave (mmWave) technology to showcase the potential benefits of faster 5G data speeds.
Story image
IDTechEx
The next stage for 5G in thermal materials - IDTechEx
IDTechEx says higher frequency deployments, such as mmWave devices and very different station types such as small cells, present their own technological evolution and, with it, thermal challenges. 
Story image
Customer
Mercury charged by ComCom following complaints of misleading customers
Mercury NZ has been charged for misleading customers following a complaint to the Commission Commission.
Story image
Investment
Spark sells 70% of TowerCo for $900 million to Ontario Teachers
Spark expects $900 million at completion but that's subject to OIO approval which is anticipated to occur in the first half of FY23.
Story image
Review
Hands-on review: TCL 30 SE mobile phone
TCL continues to provide consumers with budget phones that still pack a punch with the TCL 30 SE mobile phone. 
Story image
Internet
InternetNZ appoints new chief executive. Will take over in October
InternetNZ has announced the appointment of its new chief executive, with Vivien Maidaborn taking over the role from interim chief Andrew Cushen in October.
Story image
5G Networks
A quarter of A/NZ mobile users would pay extra for 5G - report
Venture Insights’ latest survey has found that 25% Australians and New Zealanders would pay extra for a 5G service that gives them a better video experience.
Story image
Internet of Things
A/NZ Internet of Things spending to hit $24 billion in 2026
"The role of IoT continues to grow as enterprises embrace digital initiatives and look to embed intelligence across processes and applications."
Story image
Planning
New Infovista report identifies significant CAPEX savings
A new report by Infovista has found that making modelling more precise in RAN planning and designing can foster major CAPEX savings for mobile operators.
Story image
New Zealand
Research finds Kiwis prefer real backdrops in video calls
New research from Natural Paint Co. has found that 74% of Kiwis prefer seeing a natural background behind people during video meetings.
Story image
Investment
Three waters IT system project could top $500m, warns National
A new project merging local councils' water service IT systems as part of the three waters reforms could blow out beyond the $500 million upper limit officials have quoted, National says.
Story image
Internet of Things
Large enterprises propel 5G industrial IoT market
Large enterprises are propelling the 5G industrial Internet of Things market, according to a recently published report from Future Market Insights.
Story image
Artificial Intelligence
Siemens expands NVIDIA partnership for industrial metaverse
Siemens is expanding its partnership with NVIDIA to enable the industrial metaverse and increase the use of AI-driven digital twin technology.
Story image
Services
8x8 announces its CPaaS can now deliver no-code functionality
8x8 CPaaS can now deliver no-code functionality that can enable enterprises to further create better customer experiences, the company says.
Story image
Internet of Things
NTT reveals plans for new trans-Pacific submarine cable
New company formed to build and operate the largest submarine internet cable system between Japan and the United States.
Story image
Cloud
BT builds on Equinix partnership with new cloud offering
BT has launched a next-generation cloud connectivity offering extending its global network into strategic carrier-neutral facilities (CNFs) and building on its existing partnership with Equinix.
Story image
Telecommunications
WiFi as a Service market to reach $26 billion through 2032
As a result of the easy management of wireless infrastructure over cloud services, WaaS is experiencing rapid growth.
Story image
Employment
Tech job moves - Barracuda, Infragistics, Microsoft & Okta
We round up all job appointments from July 14-21, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Commerce Commission
The NZ TCF endorses move by ComCom to promote TDR dispute scheme
The New Zealand Telecommunications Forum has welcomed the move by the Commerce Commission to further promote customers' access to the Telecommunications Dispute Resolution Scheme (TDR).
Story image
Nokia
Nokia, Infovista to accelerate roll-out of 5G deployments
Infovista has announced a global partnership with Nokia to accelerate the rollout and acceptance of 5G network deployments. 
Story image
ABI Research
NaaS market expected to reach $150B by 2030 - research
"The market is immature and fragmented, but telco market revenue will exceed US$75 billion by 2030 if they act now and transform to align with requirements."
Story image
Infratil
Vodafone $1.7b passive mobile tower sale to InfraRed and Northleaf
Vodafone New Zealand announces the sale of its passive mobile tower assets for $1.7 billion to global investors InfraRed Capital Partners and Northleaf Capital Partners.
Story image
Southern Cross Cable
Southern Cross Cable launches the SX NEXT cable to connect NZ to the world
The new Southern Cross NEXT fibre cable (SX NEXT) is set to connect Australasia to the US and further enhance connectivity between New Zealand, Australia, and the US.
Story image
Spark
Spark delivers 5G Multi Access Edge Compute pilot with EnviroNZ
The pilot of the computer vision system helps solve a key business issue for EnviroNZ at its resource recovery centre identifying health and safety risks.
Story image
Apple
New leaders promoted at Ingram Micro's New Zealand operation
The local broad-based technology distributor has made two key appointments as a result of combining two business units.
Story image
Data Protection
How secure is accounting software data in Aotearoa?
A recent Xero study found ICT spending for NZ businesses has increased 25% compared to pre-pandemic levels, so how safe is accounting software?
Story image
Infrastructure
Oracle Cloud Infrastructure expands distributed cloud services
“Distributed cloud is the next evolution of cloud computing, and provides customers with more flexibility and control in how they deploy cloud resources."
Story image
Internet of Things
ManageEngine wins big in IDC MarketScape assessment
ManageEngine's Endpoint Central service has been recognised as a leader by IDC MarketScape in several categories including Internet of Things device deployments and UEM software for SMEs.
Story image
Revenue
Datacom announces revenue of $1.45 billion, fall in profit
Growing market pressures and border closures saw Datacom place increased focus on talent development initiatives for both existing and future employees.
Story image
Networks
2degrees launches 13 new 5G coverage areas, network upgrades
2degrees has announced it has launched 13 new 5G areas in June, as the company continues its 5G rollout and investment.
Story image
Collaboration
Infovista enters strategic partnership for 5G offerings
Infovista has entered a strategic collaboration with PCTEL to co-develop joint 5G network testing use cases for mobile operators and industry regulators.
Story image
Electrical
Up to $2.4 million shortfall in the collapse of IndeServe
We delve into the liquidators first report on long-standing networking service provider IndeServes collapse.
Story image
Sustainability
ST Engineering launches cooling system for greener data centers
ST Engineering says its Airbitat DC Cooling System cools down data centers and achieves annual net energy savings of more than 20% over conventional chiller systems alone. 
Story image
Awards
Kacific wins big at the Asia Pacific Stevie Awards
Kacific has scooped up gold and silver awards at the 9th annual Asia Pacific Stevie Awards for its innovative technologies and services to ease the Covid-19 situation in under-connected communities.