Deutsche Telekom mulls tower options - Mobile World Live

Deutsche Telekom mulls tower options

27 JAN 2022
tower

Deutsche Telekom reportedly held talks with Vodafone Group and Orange regarding potential tower tie-ups, part of a larger effort by the German-headquartered operator to maximise the value of its infrastructure assets.

Bloomberg reported the list of interested parties includes Cellnex, which has been steadily building its portfolio in the region, including a deal with Deutsche Telekom in the Netherlands completed in mid-2021.

Deutsche Telekom owns infrastructure in several European countries, with by far the largest concentration in Germany, where it has almost 33,000 towers.

Subsidiary GD Towers holds the German towers along with an additional 7,000 in Austria.

In late 2021, Deutsche Telekom CEO Timotheus Hoettges told an investor conference he was interested in finding a partner for the operator’s tower business. German media later reported the operator would begin exploring a sale of the assets early in 2022.

A sale is still on the table, though Bloomberg reported Deutsche Telekom is also discussing potential merger deals with other operators.

Vodafone holds a majority interest in Vantage Towers, but the fact the unit trades on a German stock exchange could result in regulatory hurdles, the news service stated.

Orange set out to become Europe’s leading tower owner through its Totem subsidiary, which has 26,000 radio sites.

Tower spin-offs are an attractive option for operators because the independent units can lease space to multiple operators.

Others have pursued sales to generate income from the assets.

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Martha DeGrasse

Freelance tech journalist Martha DeGrasse (@mardegrasse) is delighted to be contributing to Mobile World Live. Martha has written for a number of telecom and wireless publications, and was a writer, editor and video producer at RCR Wireless News for almost...

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