HELSINKI, Aug. 6 (Xinhua) -- Swedish telecom operator Tele2 announced plans on Wednesday to establish a new joint venture aimed at accelerating the rollout of mobile and 5G services across the Baltic region.

The new venture will own and operate approximately 2,700 tower and rooftop sites across Estonia, Latvia, and Lithuania, significantly boosting digital connectivity and infrastructure in the region.

The new company will be based in Lithuania and formed through a 50/50 equity partnership between Tele2 and Global Communications Infrastructure LLC (GCI), a telecom tower platform backed by Manulife Investment Management (Manulife IM). According to Tele2, this initiative marks the establishment of the first pan-Baltic tower company.

The transaction values the new venture at 560 million euros (651.36 million U.S. dollars) on a debt-free basis, Tele2 confirmed.

Under a 20-year Master Service Agreement (MSA), Tele2 will act as the anchor tenant, ensuring long-term, stable access to critical telecom infrastructure. The joint venture will play a central role in strengthening mobile network coverage and supporting the sustained rollout of next-generation services.

Beyond the management of existing sites, both Tele2 and GCI have committed to a 10-year investment plan focused on building new infrastructure throughout the Baltic states. This initiative aims to improve network reach, reliability, and resilience, addressing rising consumer and enterprise demand.

The transaction is subject to customary regulatory approvals and is expected to be completed in early 2026.

Manulife IM, the global asset management division of Manulife Financial Corporation, manages GCI on behalf of institutional clients. GCI specializes in global investments in telecom infrastructure, with a focus on mobile tower assets. (1 euro = 1.16 U.S. dollars) ■