Cellnex teams up with Bouygues to develop 5G networks in France

Cellnex teams up with Bouygues to develop 5G networks in France

The total investment planned for the deployment of these centers reaches 250 million euros

  Cellnex Telecom and Bouygues Telecom have reached an agreement that will reinforce and extend the collaboration they started in 2016 and 2017, by which they will build up to 88 strategic telecommunications centers in France in the next five years , which will be able to house data processing capacity.

The total investment planned for the deployment of these centers reaches 250 million euros , which will be obtained from the available cash and future cash flows of Cellnex France.

  According to Cellnex explained to the National Securities Market Commission (CNMV), once completed the deployment of 88 centers, by 2024, will achieve an additional gross operating result (Ebitda) of about 19 million euros.

Cellnex will deploy up to 88 new strategic telecommunications centers - voice and data traffic hubs - known as "Central Offices" and "Metropolitan Offices", with the potential to house data processing capacity.

The French operator Bouygues Telecom will be the main customer of these new centers, for which both companies have signed a service provision agreement.

Distributed data processing capacity is one of the critical elements to reach the levels of performance in terms of data volume and latency associated with 5G.

"The agreement that we have reached today not only reinforces our position in the French market, but, thanks to the collaboration with a 'premium' client such as Bouygues, will allow us to develop key and decisive elements of the 5G ecosystem and the service that we offer our customers, as the data processing capacity distributed on the network, without which the potential of the 5G would not be a reality, "underlined the CEO of Cellnex Telecom, Tobias Martinez.

The agreement will be executed until 2024 with a planned investment of 250 million euros

This agreement reinforces the collaboration of Cellnex with Bouygues Telecom after the agreements reached in 2016 and 2017 that foresee, until 2022, the acquisition and a new deployment of more than 5,000 locations in France.

"This project is completely aligned with the corporate purpose of Cellnex and its international expansion strategy (...) It also fully complies with Cellnex's policy of return and creation of value", the company highlighted.