Cellnex UK, the U.K. subsidiary of Barcelona, Spain-based tower company, Cellnex Telecom (MC: CLNX), has reached a new long-term agreement to provide tower infrastructure and associated services across the U.K. to mobile network operators, Vodafone (NASDAQ: VOD) and Virgin Media O2. Furthermore, the tower access deal enhances the recently renewed separate network sharing agreement that extends the current arrangement between Vodafone UK and Virgin Media O2 for more than a decade. Subject to the approval of the merger between Vodafone UK and Three UK (MergeCo) by the U.K.’s Competition and Markets Authority, MergeCo will participate in the network sharing agreement. As another condition for CMA’s approval, Virgin Media O2 will acquire spectrum from MergeCo.
At the end of 1Q24, Cellnex owned and operated 13,341 towers, with 255 planned build-to-suit sites by 2030, across the U.K., according to Inside Towers Intelligence. Cellnex acquired these towers as part of a large-scale deal the company made in 2020, for CK Hutchison’s towers across six European markets for around $11 billion. Earlier this year, Cellnex sold its Ireland business comprising roughly 1,900 sites to Phoenix Tower International for nearly $1.1 billion, Inside Towers reported.
“The new agreement, forged through great collaboration between our organizations, will enable the efficient sharing of our infrastructure today and the flexibility to support the growth of our customers’ networks in the future,” comments Gianluca Landonlina, Cellnex UK CEO. “Cellnex will provide related services and share our capabilities, thereby becoming a valuable partner to help Vodafone and Virgin Media O2 achieve their objectives [and the agreement] further strengthens our commitment to the U.K. market.”
Andrea Dona, Chief Network Officer, Vodafone, says, “This partnership helps us both expand and maintain our reliable network in all corners of the U.K., not only now, but also in the future.”
“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,” says Jeanie York, Virgin Media O2 CTO.
By John Celentano, Inside Towers Business Editor
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