Cellnex extends its agreement with Bouygues Telecom in France

The agreement reinforces and expands the collaboration with Bouygues Telecom following the agreements reached in 2016 and 2017 that provide, until 2022, for the acquisition and new deployment of more than 5,000 sites in France.

Cellnex Telecom y Bouygues Telecom have reached a agreement that will strengthen and expand collaboration which began in 2016 and 2017, following agreements between both companies that provided for the acquisition and deployment, by Cellnex, of more than 5,000 sites until 2022.

The new agreement, which is planned to be deployed over the next five years, provides for the new construction of up to 88 strategic telecommunications centers (also called Central Offices y Metropolitan Offices), which may house data processing capacity. The Total planned investment reaches 250 million euros. Once the deployment of the 88 centers is completed, the estimated additional EBITDA would reach 19 million euros.

The distributed data processing capacity, also known as “edge computing”, constitutes one of the critical elements to achieve the performance levels in terms of data volume and latency or application response times, associated with 5G.

Bouygues Telecom will be the main client of these new centers, for which they have signed a service provision agreement in line with the contracts already in force between both companies.

The CEO of Cellnex Telecom, Tobias Martinez, has highlighted the strategic sense "of an operation in which Cellnex and Bouygues continue to deepen a long-term industrial partnership model. 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 like Bouygues, it will allow us to develop key and decisive elements of the 5G ecosystem and the service we offer to our clients, such as the data processing capacity distributed in the network, without which the potential “5G would not be a reality.”