Cellnex inks new tower deal with Vodafone and VMO2

The new agreement locks in Vodafone and VMO2’s access to Cellnex's tower infrastructure across the UK, facilitating the network sharing deal between the two operators under their separate agreement.

Vodafone said the deal will help it expand and maintain its network ‘in all corners of the UK, not only now, but also in the future.’

Cellnex said that the move strengthens its commitment to the UK market and provides ‘long term visibility’ to its industrial activity and financial investment, which is a bit of a cryptic statement.

Earlier this year, Cellnex brokered a deal to sell its Ireland business to Phoenix Tower International for around €971 million, which can be seen in the contexts of a less aggressively expansionist phase for the tower company following a period of large-scale acquisitions – such as the €10 billion deal it signed around three years ago which saw it take on CK Hutchison's towers across a dozen European markets.

“This agreement exemplifies the strength of Cellnex’s partnerships with its customers,” said Cellnex UK CEO, Gianluca Landonlina. “The new agreement, forged through great collaboration between our organisations, will enable the efficient sharing of our infrastructure today and the flexibility to support the growth of our customers’ networks in the future.

“Cellnex will provide related services and share our capabilities, thereby becoming a valuable partner to help Vodafone and Virgin Media O2 achieve their objectives. At all times, we are aligned with our customers on the common goal of extending reliable and high performing telecommunication networks to serve their end customers. Also, to become integral to the successful roll-out of wireless connectivity throughout the UK to help the digitalization of the whole country.”

Jeanie York, Chief Technology Officer at Virgin Media O2 added: “This partnership will help us maintain and upgrade our existing sites across the country and ensure we continue to provide our customers with the fast and reliable mobile connectivity they increasingly rely on as we invest billions of pounds each year in our networks and services”.

Vodafone and VMO2 extended their network sharing arrangements at the beginning of this month, alongside an agreement that would see the latter acquire spectrum from a merged Vodafone/Three – assuming all that goes through.

One of the criticisms of the merger is that it could create a spectrum imbalance in the UK, so offloading some of it would seem to be a move to help alleviate fears around that by offering concessions now, while the regulatory cogs are still cranking out a decision.

Having launched the first phase of its investigation in January which led to a more in-depth probe in April, the CMA has until September to make a decision on whether it will give the merger the nod.