UPDATE With an IPO looming at the end of March, Vantage Towers, the tower subsidiary of European carrier giant Vodafone, has signed German carrier Sigfox to a 500 site lease agreement. As Telecoms.com reports, the deal will allow Sigfox to significantly expand its low powered IoT bandwidth while boosting investment in the public offering. Market analysts have cited Vantage Towers’ low tenancy rate, which consisted primarily of Vodafone as an anchor tenant throughout its portfolio.
“The strong demand for Sigfox 0G network coverage and services is a driver of our expansion in our largest market, Germany,” stated Sonia Hernandez, Chief Commercial Officer for Vantage Towers. CEO Thomas Scheibel of Sigfox also spoke positively, saying, “With 15,000 rooftop sites, very deep and comprehensive coverage across Germany, competitive pricing, and customer specific roll out services, Vantage Towers is the partner of choice for Sigfox Germany.”
Vantage Towers saw a large jump in revenue in the final three quarters of 2020, pulling in over U.S.$430 million in Germany alone. Consolidated revenue logged in at over U.S.$871 million. During this time, Vantage reported that it added 1,400 new tenancies, boosting its tenancy ratio to 1.39x and closing in on its goal of 1.5x. “This progress is expected to enable more focus on the upsides to our plan on long-term growth opportunities,” Vantage stated upon releasing these results.
Deals with Eir and Three in Ireland are expected to pull in another 200 to 250 tenancies for Vantage Towers. Additionally, a five-year deal with AOTEC in Spain could open the door for additional tenancy opportunities in rural areas. Vantage Towers puts a lot of its business focus on its tenancy ration, viewing it as progress that it is its own entity and not merely an adjunct of its Vodafone outgrowth, according to Telecoms.com.
Reader Interactions