Govt partners with OCK Group Berhad to establish telecom tower firm in Laos

The Lao government will partner with Malaysia’s OCK Group Berhad to establish a company for developing telecommunications towers across the country.

Dr Sonephet Inthavong (second from left), Mr Ooi Chin Khoon (second from right), Mr Phoukhong Chithublock (left) and Mr David Low sign the shareholders agreement in Vientiane.

A shareholders agreement for establishing OCK Laos TowerCo Co Ltd was signed in Vientiane on Tuesday. The Lao government was represented at the event by the Director General of the Department of State-Owned Enterprises Reform and Insurance, Dr Sonephet Inthavong, Director General of the Communications Regulation Authority, the Ministry of Technology and Telecommunication, Mr Soudchay Lorlonesy, while OCK Group Berhad was represented by its Managing Director, Mr Ooi Chin Khoon, who is also the representative of the OCK SEA TowerCo Pte Ltd, and the Group Chief Executive Officer, Mr David Low.
The ceremony was attended by the Minister of Technology and Communications, Prof. Dr Boviengkham Vongdara, and the Deputy Minister of Finance, Mr Bounpone Vannachith along with the relevant government officials and the company representatives.
OCK Group Berhad has its principal office in Malaysia and has registered at Bursa Malaysia Securities to establish OCK Laos TowerCo Co Ltd, which will be located at Pakthang village of Sikhodtabong district in Vientiane capital. It will operate under the business license No 0155, dated January 21, 2022 and the letter related to the appointment and attorney of power, dated October 1, 2022, Mr Ooi Chin Khoon said.
“In the past, OCK has coordinated with the Ministry of Technology and Communications to conduct a feasibility study. The study found that the project has a high trend in the economy and markets due to the demand for telecommunications towers in Laos. Therefore, we offered to sign the Memorandum of Understanding (MOU) with the Ministry of Technology and Communications on September 22, 2021,” he said. After that, the Ministry of Planning and Investment coordinated with related authorities to hold a meeting for discussion at the Investment Promotion Department (or the investment one-stop service office) on December 30, 2021.
This was followed by the letter no 003, dated January 5, 2022, concering the investment for general activities, which stated that the proposed firm’s operations were not in the “Controlled List” and “Land Concession List”, in accordance with Decree no 03 dated January 10, 2019, Mr Ooi Chin Khoon said.
OCK Group Berhad wishes to expand its business in Laos and wants to cooperate with the Lao government to develop telecommunications towers and related services by establishing the joint venture company OCK Laos TowerCo. The Lao government, represented by the Ministry of Finance, will hold 30 percent of shares in the joint venture, while OCK will hold 70 percent of the shares.
The agreement will be valid for 15 years and can be renewed subject to agreements between the two parties and the regulations of Laos.
OCK Group will invest US$ 150 million in the project over five years, and the investments will focus on infrastructure, establishing telecommunications towers for operators in Laos, and providing rent for the telecommunications towers and internet, said Mr Ooi Chin Khoon.
The company expects to set up around 5,000 telecommunications towers across Laos within two years. It will continue to expand according to market demands in Laos, he added.
The company will define the main goals for establishing telecommunications towers in Laos, frame a business strategy, and create relationships with telecommunications operators, especially between Laos and Malaysia, in accordance with the policy of Laos, Mr Ooi Chin Khoon said.

By Times Reporters
(Latest Update October 6, 2022)