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Cellnex Bouygues Agreement

SPV will acquire part of its fibre-optic infrastructure network from Bouygues Telecom and engage Bouygues Telecom exclusively in the design and development of the new fibre-optic infrastructure network. In return, Bouygues Telecom will enter into a 30-year wholesale agreement with SPV, in which it commits to acquire approximately 70% of the network`s capacity. The remaining capacity is available to third parties for sale. Telecommunications companies are probably painted in an uncomfortable corner. These are companies that need cash, so it may be necessary to divest non-critical assets. But it will always be a more financially attractive position to own passive infrastructure than to enter into leases over a long period of time. The new agreement with Bouygues Telecom strengthens Cellnex`s position in the French market, where Cellnex has been present since 2016, when it acquired a first package of 500 Bouygues Telecom sites. The company continued to strengthen its presence in 2017 and 2018 through new agreements with Bouygues, where Cellnex acquired and managed more than 5,000 sites. In 2018 and 2019, cooperation has been extended to agreements to develop 5G networks and infrastructure. « We are strengthening our long-term strategic partnership with Bouygues Telecom, a relationship that was forged in 2016 with our first agreement and has continued to grow and strengthen ever since, » Martinez said. Indeed, the addition of additional assets in France continues an expansion fuelled by the MAMs, which has made Cellnex the sexiest neutral host of Europe`s mobile infrastructure and operates a portfolio of around 58,000 sites (including predictable deployments by 2027) in Spain, Italy, the Netherlands, France, Switzerland, the United Kingdom, Ireland and Portugal.

In France, Cellnex said it manages nearly 14,000 sites by 2027, once all its agreements have been completed, including 5,000 towers for Bouygues Telecom. This time, the French operator has agreed with phoenix Tower International of the United States which, as part of the agreement, will build 4,000 towers throughout France over the next 12 years. Phoenix will control the joint venture and own and operate the sites. The towers will be located in sparsely populated areas and adjacent to communication routes. Some of these new sites will help Bouygues meet Arcep`s coverage targets under the « New Deal Mobile » agreement, which requires telecos to expand the reach and quality of advanced mobile services across the country and improve quality. Tobias Martinez, CEO of Cellnex, explains: « The agreement to introduce a real fibre optic network in France linking key elements of the fixed network and mobile ecosystem, from fibre-optic towers to small cells to data centers distributed over the network, is our commitment to a global model of cooperation with our key customers to facilitate the efficient design and operation of telecommunications infrastructure networks. » Cellnex Telecom CEO Tobias Martinez said the agreement represented « the company`s commitment to a comprehensive model of cooperation with our key customers to facilitate the planning and efficient operation of telecommunications infrastructure networks. » Yanitsa joins Mobile World Live as a London-based reporter. She has more than 5 years of experience in various media in her native Bulgaria. She began her career as a political journalist, followed by roles as an editor… The new entity plans to set up a fibre optic network of up to 31,500 km in France over the next seven years, offering mobile and fixed connections.

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