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The marriage of Cellnex and Bouygues Telecom to a billionaire

The partnership between the European pylon giant Telco and Bouygues Telecom is being further strengthened with the creation of a joint venture (51% owned by Cellnex and 49% by Bouygues Telecom). This new agreement concerns the deployment and operation of the operator's fibre optic network in France, with an investment of one billion euros by 2027.

This will enable Cellnex to deploy a 31 500 km network linking the roofs and telecom masts operated by Bouygues Telecom to the network of "metropolitan offices" designed to house data processing centres.

This will create "a real fibre optic ring linking several key elements of the fixed and mobile ecosystem, from fibre-connected masts to data centres and small cells", said Tobias Martinez, CEO of Cellnex.

Placed within the framework of a joint venture created between the two companies, the agreement will also cover the deployment of 90 new "metropolitan offices" by 2027.


In France since 2016 via its local branch, the group now has 130 employees responsible for managing a portfolio of 9,192 mobile sites throughout the country. This rapid growth has led Cellnex France to become a first-name customer for the other two sector champions, Hivory and TDF.

This is a good illustration of the group's strong ambitions in France and in Europe, where in 2019 - and for the first time ever - it will generate 51% of its turnover and 60% of its ebitda outside Spain.


This strategy is supported by a substantial investment by the Spanish ogre in France. 4.3 billion in France since the creation of its local branch. 4.3 billion in France since the creation of its local branch, making it Spain's leading investor and raising it to the status of a benchmark player in mobile infrastructures.

Cellnex France has also acquired 5,700 passive sites from Free through the acquisition of 70% of Iliad's TowerCo.


This strategy has paid off, since 67.5% of Cellnex's revenues are now derived from infrastructure services to mobile operators. The Spanish giant has announced that it has exceeded the one billion euro revenue mark in 2019, with 36,471 sites now operational in Europe.

The group recorded overall revenues up 15% for the year and Ebitda up 16% compared to the previous year. And with an order book that now stands at 44 billion euros, this is not likely to stop.


This performance owes a lot to an extraordinary investment by the Spanish ogre. It has injected no less than 8 billion euros into growth operations in 2019.

"2019 will undoubtedly have been a year of transformation with a prodigious leap in size and a qualitative leap in strengthening the group's position in its key markets, as well as an expansion of our geographical presence in Europe," said Franco Bernabè, the group's chairman.




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Source : ZDNet





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