The announcement that GO would be selling its network of cell towers to BMIT, a majority-owned subsidiary, raised eyebrows earlier this week as users questioned the benefits of the transaction.
WhosWho.mt reached out to the telecoms provider to find out more about the reasoning behind the sale.
GO explains that mobile antennas are an essential component in the provision of mobile telecommunication services. These are placed at different sites across the Maltese Islands, in order to ensure optimal coverage.
Each site is equipped with passive infrastructure such as beam reinforcements, poles, counter-balances, stays and other structural works.
“These structural assets, together with the necessary site lease agreements, comprise the passive telecoms assets we are referring to, and which GO is selling BMIT as part of the transaction.”
These towers are used by GO to install active cellular equipment necessary for the provision of its mobile telephony services.
But what does GO gain from this sale?
“The transaction brings about both operational and financial benefits for GO,” said a representative for the company.
“By selling its passive telecoms assets and entering into a long-term master service agreement with BMIT, GO is reducing its operational burden, allowing it to focus its efforts more intently on its core business.”
The master service agreement between the two companies binds BMIT to provide hosting, co-location and maintenance services to GO for an initial thirty-year period, renewable for periods of five years.
The spokesperson added that the cash proceeds from the transaction will allow GO to continue to invest in its technology, products and services to deliver a better customer experience “in line with its purpose to drive a digital Malta where no one is left behind”.
Furthermore, part of the proceeds will be deployed towards refinancing existing borrowings and hence reduce GO’s cost of borrowing.