For decades, the MNO-TowerCo relationship was straightforward: operators paid to lease space on towers and towercos collected rent.
This model was low-risk and scalable but focused only on the basics of network coverage.
However, today, networks are far more complex. Operators need faster speeds, lower latency, real-time analytics and reliable energy use. To meet these demands, towercos must do more than provide space, they must become active partners in the network.
Beyond the traditional lease
Sushil Kumar Chaturvedi, group CEO of Acend Telecom Infrastructure, who is speaking on the ‘Beyond the lease: Redefining MNO–towerco partnerships for long-term sustainability’ panel at ITW Asia 2025, explains why the old model is no longer enough.
“We stand today at a pivotal moment in the telecom industry – one where connectivity is no longer just about coverage or capacity, but about creating intelligent, sustainable, and future-ready networks. We must go beyond the lease. Beyond transactional relationships,” he says.
“As 5G, edge computing, IoT, and AI converge, the demands on our infrastructure are growing more complex than ever before. And in this new landscape, the traditional landlord–tenant model between MNOs and towercos – one built purely on leases and rent – is no longer enough.”
Chaturvedi’s observation also reflects a broader industry realisation: simply paying for space is no longer enough.
Instead, operators now need tower sites that are actively managed to handle network congestion, support low-latency services and integrate renewable energy.
Towers are expected to host edge computing resources, support private enterprise networks, and provide flexible capabilities that can be adapted, as the industry evolves.
“Future calls for strategic alliances, where towercos and MNOs co-create value, co-innovate solutions, and co-invest in the infrastructure that will define tomorrow’s digital economy,” Chaturvedi explains.
“Together, we can transform towers from passive structures into active enablers of network evolution – hosting edge data centres, integrating renewable energy, supporting private networks, and driving the next wave of digital services.
“This new partnership model is not just about economics – it’s about resilience, adaptability, and shared responsibility. It’s about meeting ESG goals together, unlocking new revenue streams together, and responding to market shifts together. In short, it’s about building ecosystems, not contracts,” he notes.
Towers as active network nodes
The arrival of 5G has changed network design, as it now depends on distributed networks, small cells and edge computing to deliver low latency and high reliability.
As a result, towercos are now transforming their sites from passive structures into active nodes, hosting edge data centres, managing energy use and supporting private networks, hosting opportunities for both MNOs and TowerCo’s to share investment, cut costs and improve network performance.
“A tower company’s investment in standardised edge initiatives like 3GPP Edge architecture would enable a more open ecosystem – so vendor software may integrate at the edge and could be managed jointly by TowerCo and operator,” Enea director, Fergus Wills, says.
“The vendor software has to provide more application intelligence, for example, packet/flow inspection, connection observability parameters and edge resource usage parameters. In this way the edge component becomes the early detection point for both RAN connectivity issues and application and access anomaly. Combined with enforcement and reaction, the towerco edge becomes an active application edge in the network.”
“Adherence to open standards in this case is foundational as the towerco may over time integrate with multiple MNO’s (or potentially provide direct observability for full MVNOs),” he explains.
Economic and sustainability benefits
Traditional leases often provide predictable but limited income for towercos.By investing in edge computing, renewable energy and private network capabilities, towercos can capture more value from the network.
Meanwhile, operators benefit from reduced costs and faster deployment.
Sustainability is another key factor. As 5G densifies networks and energy demands rise, towercos and MNOs are working together on renewable energy, battery storage and smart energy management.
These partnerships reduce carbon footprints and create more resilient networks, meeting both business and environmental goals.
“If we embrace this mindset, our collaboration will not only power networks – it will power societies, economies, and entire digital nations. The next chapter of telecom growth will not be written by MNOs or towercos alone – but by what we achieve together,” Chaturvedi explains.
“So, let’s redefine this partnership, from infrastructure leasing to infrastructure leadership and set the foundation for a future that is connected, sustainable and shared.”
Paul Wright, CRO at CBNG agrees, claiming mobile networks are evolving rapidly to support Open RAN, AI and rising data demands.
“As a result, MNOs and towercos have a great opportunity to move beyond the traditional lease-based model and build deeper, more strategic partnerships. That means, instead of focusing solely on-site rental, MNOs and towercos can work together to make infrastructure smarter, greener and more open”
He continues: “Tower sites can transform into shared innovation hubs to support Open RAN, intelligent power systems and flexible deployment models that help reduce costs and accelerate 5G growth.”
A cultural shift in telcos
Previously, the relationship was transactional: leases were signed, rent was paid and that was the end of the engagement.
Now, collaboration requires shared vision, continuous innovation, as well as joint responsibility.
Private networks for hospitals and smart cities, for example, are driving demand for flexible, programmable infrastructure.
Edge computing moves data closer to users, enabling ultra-low latency applications such as autonomous vehicles and AR/VR, meanwhile, regulators increasingly require energy-efficient and sustainable solutions.
As a result, towercos and MNOs that adopt this collaborative, forward-looking model are best positioned to succeed.
The future of networks
According to Wright: “One area with huge potential is carrier aggregation. By combining spectrum from different operators on the same tower infrastructure, we can cut down on the number of radios and separate towers needed. This can result in lower emissions, better energy efficiency and optimised network performance. This kind of shared, forward-thinking approach is exactly what will define the next generation of connectivity partnerships.”
This comes as some towercos are already deploying modular edge units on rooftops and street towers, becoming neutral-host solutions to allow multiple operators to access computing resources, making networks more cost-effective.
Wills stresses that open standards are essential: without them, integration across multiple MNOs or MVNOs would be inefficient or impossible.
Despite challenges, it is evident telecom infrastructure is moving from simple leasing arrangements to partnerships built on co-investment, shared intelligence and ecosystem thinking.
Instead, it is adopting a more technical and economic approach, whilst also becoming smarter and more sustainable.
Towers are no longer just poles with antennas; they are dynamic platforms driving the next wave of digital services.
“The focus must shift from contracts to ecosystems, from renting to leading, and from infrastructure alone to infrastructure as a catalyst for society-wide impact,” Chaturvedi concludes.
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