TOTEM is the newest independent tower company in Europe. The company is the European tower subsidiary of Orange S.A. (NYSE: ORAN), (formerly France Télécom S.A., the French multinational telecommunications corporation based in Paris). TOTEM began operations on November 1, 2021.
By forming TOTEM, Orange bolsters its position as a manager and operator of passive mobile infrastructure and can realize new sources of growth. TOTEM’s management and operation will be completely independent of Orange following the transfer to TOTEM of all key passive mobile infrastructure assets (sites, land, master lease agreements and 3rd party leases).
The company is operating initially in France and Spain, the two largest countries where Orange is present. At launch, TOTEM’s infrastructure portfolio consists of over 26,000 tower sites, rooftops, distributed antenna systems and other mobile sites in these two countries.
TOTEM France will manage 18,500 macro-sites with a mix of approximately 10,730 tower sites, 5,550 rooftops and 2,220 in other locations. TOTEM Spain will oversee and manage 7,900 macro-sites, split roughly 50-50 between tower sites and rooftops.
As a neutral, independent tower company, TOTEM will pitch infrastructure sharing offers to mobile network operators and sell coverage solutions to improve connectivity in dense and enclosed environments including stadiums, underground stations, trains, and office buildings.
Nicolas Roy, CEO of TOTEM Group, comments, “Launched first in France and Spain, TOTEM has become a new player for regional development in Europe. TOTEM will create value for all stakeholders – [mobile network] operators, landlords and real estate players, regional authorities, [enterprise] companies, thanks to its connectivity solutions and equipment sharing.”
TOTEM aims to become a leader in the tower company business in Europe. After France and Spain, the company will consider options of incorporating other passive mobile infrastructure assets from the Orange Group’s operating companies in six other European countries. Longer term, TOTEM’s operations could incorporate a number of Orange sites across 18 countries in Africa and the Middle East.
Management believes TOTEM is particularly well-suited to provide coverage solutions wherever infrastructure pooling between MNOs is desirable or made compulsory by the constraints of the location. Moreover, the company can provide connectivity services in both rural and urban locations. In addition, TOTEM has the in-house skills required to manage its tenants’ occupancy on existing sites and to deploy new infrastructure for “build-to-suit” sites and turnkey installations.
At launch, TOTEM has around 100 employees in France based in seven cities around the country, about 50 employees in eight cities in Spain, and approximately 20 people working at TOTEM Group headquarters in Paris.
By John Celentano, Inside Towers Business Editor
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