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  • 10 Dec 2018
  • ·
  • Technology

Cellnex extends its partnership with Bouygues Telecom in France

Advancing the 5G ecosystem: agreement to roll-out up to 88 strategic sites

  • Cellnex commits up to 250 million euros over five years to deploy 88 new strategic telecom centers
  • These telecom centers – concentrators of voice and data traffic known as Central and Metropolitian Offices – have capacity to house data processing capabilities, an essential component for 5G connectivity.
  • Once fully deployed, these facilities will contribute an estimated 19 million euros of additional EBITDA for Cellnex.
  • Cellnex and Bouygues Telecom have also agreed on a service provision contract (Master Service Agreement) in line with those already signed with the French operator in terms on renewals and indexation.
  • Reinforces and extends the cooperation with Bouygues Telecom following the agreements announced in 2016 and 2017, which foresee the acquisition and further roll-out of more than 5,000 sites in France by 2022.

Barcelona, 10th december 2018.- Cellnex Telecom and Bouygues Telecom have reached an agreement that will reinforce and extend the cooperation they began in 2016 and 2017 after the deals involving Cellnex acquiring and deploying more than 5,000 telecommunications sites from the French operator until 2022.

Under the terms of the agreement announced today, Cellnex Telecom will commit up to 250 million euros over five years for the construction of 88 strategic telecom centers – also called ‘Central Offices’ and ‘Metropolitan Offices’ – with capacity to house data processing capabilities.  These new assets, once all have been built, will contribute an estimated 19 million euros of additional EBITDA.

Distributed processing capabilities, also known as edge computing[1], form a critical component required to reach the data volume and latency performance levels of the applications that are associated with 5G connectivity.

Bouygues Telecom will be the main customer of these assets and thus, both companies –Cellnex and Bouygues Telecom– have also signed an agreement for the provision of services (Master Service Agreement) in line with the existing contracts between the companies.

Cellnex Telecom Chief Executive Officer Tobias Martinez underlined the strategic importance “of an agreement in which Cellnex and Bouygues continue to enhance a long-term industrial partnership model. It not only reinforces our position in the French market, but, thanks to the collaboration with a key anchor customer like Bouygues, will allow us to develop key decisive elements of the 5G ecosystem and the service we offer our customers such as the the data processing capacity distributed in the network, without which the potential of 5G could not be realised.”

[1] Edge Computing moves compute power closer to radio base stations

About Cellnex Telecom

Cellnex Telecom is Europe’s leading operator of wireless telecommunications and broadcasting infrastructures with a total portfolio of 28,000 sites including forecast roll-outs up to 2022. Cellnex operates in Spain, Italy, Netherlands, France, Switzerland and the United Kingdom.

Cellnex’s business is structured in four major areas: telecommunications infrastructure services; audiovisual broadcasting networks, security and emergency service networks and solutions for smart urban infrastructure and services management (smart cities and the “Internet of Things” (IoT)).

Cellnex reported a 15% revenues increase at the close of Q3 2018, reaching 665 million euros and EBITDA was 439 million euros, up 19% vs 3Q 2017.

The company is listed on the continuous market of the Spanish stock exchange and is part of the selective IBEX 35 and EuroStoxx 600 indices. It is also part of the FTSE4GOOD and CDP (Carbon Disclosure Project) and “Standard Ethics” sustainability indexes.

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