On Monday (yesterday), shareholders in BMIT approved a plan to purchase GO’s fixed telecom infrastructure, a move that will significantly increase its revenues and profits and opens a new field of activity for the company.

BMIT is known as a data sever company which has expanded its offering in recent years in the face of competition from cloud storage providers. It now focuses on hybrid, IT, cloud and managed services.

The purchase of GO’s infrastructural assets – around 280 cellular towers and another 30 set to be delivered by the end of the decade – also includes a service agreement for at least 30 years.

The towers are used by GO to install active cellular equipment necessary for the provision of its mobile telephony services.

In its interim financial results, BMIT noted that the provision of cloud services is not as profitable as the management of data servers.

One of the measures meant to mitigate “the threat to profit margins posed by the widespread adoption of cloud services" is the purchase of GO’s cell towers.

GO is the parent company of BMIT.

Shareholders resoundingly approved the deal, with 99.9 per cent of votes present voting in favour.

For GO, the transaction means it reduces its operational burden and allows to focus on its core areas of activity.