The telecommunications company Cellnex Telecom continues with its strategy to promote 5G technology. The company, controlled by Edizione, the industrial holding of the Benetton family, announced on Monday the extension of the agreement it has with Bouygues Telecom in France to develop mobile phone networks with 5G technology.
The agreement involves an investment of 250 million euros to build 88 strategic centers, between the so-called metropolitan offices and the central offices, within a period of five years. The agreement reached is one more example of the involvement of Cellnex Telecom in the development of 5G, the technology that, according to experts, will revolutionize mobile connectivity and allow, among other things, to develop the Internet of Things or the autonomous car.
Cellnex is part of the platform that Barcelona wants to promote as a capital in this technology, and among recent activities of the company highlights the purchase of the Dutch company Alticom, specializing in data centers for the 5G.
Precisely, the 88 strategic centers that will be built according to the agreement with Bouygues are part of the ecosystem of data centers that the 5G technology will need to operate. The offices are strategic infrastructures with the capacity to concentrate traffic that will provide processing capabilities to reduce the latency of the data, a delay that the 5G allows eliminating, contributing to the almost instantaneous communication of data.
The project, which will be financed with the available and future cash of the company, will have Bouygues Telecom as its main client. As reported by Cellnex to the National Securities Market Commission (CNMV), the agreement provides for the generation of an annual adjusted Ebitda of approximately 19 million euros when all the assets have been built.
Cellnex adds this pact to the agreements it already has with Bouygues, reached in 2016 and 2017, which foresees the acquisition and deployment of more than 5,000 antennas in France until 2022. Cellnex, a company that is part of the selective Spanish Ibex 35, currently has a portfolio of 28,000 towers and antennas, which include forecasts for up to four years.
The company lost 26 million until the third quarter due to the increase in amortizations and, according to the company, of the investments to expand its capacity. With the entry of the Benetton, which in turn have given access to investment funds from Abu Dhabi and Singapore, Cellnex is committed to receiving an investment of 1,500 million euros.