Cellnex has reached an agreement with Orange Espana to acquire a portfolio of 1,500 towers and antennas located in urban, suburban and rural areas. The overall investment has been valued at EUR260 million (USD288 million). The two parties have also signed an initial ten-year contract under which Orange can continue to place its voice and data signal transmission equipment in the cell sites. This agreement can be extended by a subsequent period of ten years and several one-year periods. Thus far in 2019 Cellnex has struck deals to increase its European tower portfolio by 25,000 assets across seven countries.
In a related development, Orange Group has unveiled plans to create TowerCos in most of its European countries, as it seeks to derive higher value from its network of 40,000 European mobile towers. The first projects will start in 2020 in France and Spain, and Orange will retain control of these entities in all of the European countries where they are created. Eventually, Orange will seek to consolidate all or part of these local TowerCos into a European TowerCo, in which the group will retain majority control. The plan was disclosed in group’s ‘Engage 2025’ strategic plan.