When Paris-based telecom service provider, Orange (NYSE: ORAN), created its tower subsidiary, TOTEM, in November 2021, the towerco became one of the leading tower companies in Europe, according to Inside Towers Intelligence.
At launch, TOTEM’s passive mobile infrastructure portfolio included over 26,000 sites in France and Spain, the two largest countries where Orange operates, Inside Towers reports. TOTEM France manages 18,500 macro-sites with roughly 58 percent in towers, 30 percent on rooftops and the balance at other sites. TOTEM Spain manages 7,900 macro-sites, distributed equally between towers and rooftops.
Though wholly owned by Orange, TOTEM operates as an independent shared infrastructure provider to other wireless service providers and sells connectivity solutions in dense markets and enclosed environments such as stadiums, underground stations, trains, and office buildings. As an infrastructure provider, TOTEM manages its tenants’ operations and can undertake build-to-suit construction programs and turnkey deployments.
Orange Wholesale CEO Michael Trabbia, in an interview with Mobile World Live, expressed confidence in TOTEM’s prospects, noting that while other mobile network operators around the world have been jettisoning their infrastructure assets, Orange Wholesale is looking at opportunities to expand its tower business.
“The market has been transforming with the [independent] tower companies buying a lot of [MNO] assets,” Trabbia said. “A lot of our [MNO] peers have sold their towers. We have not. What we see is there is still growth in the market.”
“You have growth every year even in a mature market. As a telco, you want to improve coverage all the time and you also have new opportunities with indoor and mutualized coverage,” he added.
TOTEM now operates 27,000 towers across France and Spain, with plans to add another 2,000 sites in the next two years. However, the towerco is also prepared to bid on other opportunities. Outside of France and Spain, TOTEM would consider incorporating passive mobile infrastructure assets from Orange where it operates in other European markets.
“We are ready to take part in potential consolidation in the future,” Trabbia emphasized. “We believe we are in a strong position, and we are looking at expanding ourselves in a number of ways.” He pointed out that TOTEM is open to both existing tower acquisitions, or potential merger activity.
By John Celentano, Inside Towers Business Editor
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