Why operators are buying back the assets they sold

Details: Manny Pham; Category: Operators; 11 February 2026; 2760 views

Operators across the world have spent the past several years seemingly unloading their passive infrastructure - towers, fibre optic networks, and other backbone assets - in what looked like a series of fire sales. But now, some are exercising contract clauses to bring these assets back in-house.

Selling passive infrastructure became a growing trend over the past five years, offering a quick, surefire way to raise capital. The cash was essential for expensive network rollouts, such as 5G, and for balancing the books. Leasing the assets to independent tower companies and fibre operators also allowed mobile operators to adopt an “asset-light” model, focusing resources on customer services rather than maintaining steel and fibre.

But the pendulum is swinging back. MTN recently announced it was in advanced negotiations to reacquire shares in IHS Towers in a deal approaching $3 billion. Across the South Atlantic in Brazil, Telecom Italia’s unit TIM Brasil said it would reacquire its fibre business.

Alberto Griselli, CEO of TIM Brasil, framed the move as a strategic play to capture growing demand in the broadband market. Bringing fibre back in-house, he said, will improve service quality and operational efficiency, positioning the operator for upcoming opportunities in fibre expansion.

Griselli’s reasoning illustrates why operators appear confident in taking back control of their assets. Despite the eye-watering upfront cost, owning the infrastructure directly can improve long-term cost structures. With fewer recurring leasing expenses and better control over operations, operators may enjoy higher margins over time.

Owning towers, radios and fibre also provides a competitive edge - particularly in markets where regulation allows operators to prioritise their own traffic or manage network expansion more flexibly than third-party tenants. In short, operators are betting that direct ownership and close integration of core infrastructure will pay off in operational efficiency, competitive positioning and long-term savings.

It is also worth noting that operator revenues in many markets appear to have reached a saturation point, with earnings under pressure. Against that backdrop, a long-term - albeit expensive - strategic bet on infrastructure ownership is not entirely out of the ordinary.

Of course, there are risks. Spending billions on assets previously sold is a massive gamble. If it goes wrong, it could leave a serious hole in the balance sheet, especially in emerging markets exposed to economic volatility and political uncertainty. Regulatory changes can hit suddenly - telecoms have long lived with this reality. In 2019, India’s Supreme Court forced mobile operators to collectively pay $21 billion in a dispute over the definition of “revenue” for taxation. Unexpected costs like this can quickly erode the financial benefits of asset ownership.

However, regulation could also swing in favour of operators. In South Africa, operators are calling for over-the-top (OTT) companies that rely on connectivity to contribute to the maintenance and buildout of networks. If such measures were enshrined in law, passive infrastructure assets could become even more lucrative, supported by stronger and more diversified cash generation.

Another practical consideration is the relationship with existing tenants. Operators who once rented infrastructure space to others must now balance ownership responsibilities with potential tenant concerns. As the new landlord, the operator gains control but may also face tensions if third-party users feel sidelined. Rival operators may question whether they are being treated equally in terms of pricing, maintenance and upgrade schedules. Owner-operators will need to keep tenants satisfied to preserve both utilisation rates and the long-term value of the asset.

Ultimately, these buybacks signal a potential strategic recalibration in telecom. The industry may be moving from a decade of financial engineering - selling assets to unlock cash - back towards greater integration, where controlling the physical network is seen as a critical lever for long-term growth. MTN and TIM Brasil are betting that owning their networks outright will pay dividends in efficiency, customer experience and profitability - but only if the billions they are spending today translate into sustainable advantage tomorrow.