- ON Tower, Cellnex’s Portuguese subsidiary, is trying to purchase six telecom towers from NOS Technology.
- This move follows a 2020 deal where Cellnex took over 100% of NOS’s tower portfolio, and includes a 15-year initial lease with options to extend.
OUR TAKE
This acquisition shows ON Tower’s commitment to improving Portugal’s telecom infrastructure. It helps them get ready for the growing need for data. The deal also shows that regular investment and working together with others is key in the telecom world, helping to make services better and more efficient.
–Vicky Wu, BTW reporter
What happened
Cellnex‘s Portuguese subsidiary, ON Tower, has announced plans to acquire six telecom towers from NOS Technology, as revealed in a regulatory filing submitted to Portugal’s competition authority, the Autoridade da Concorrência (AdC). This transaction, although modest in scale compared to previous deals, signifies a strategic move by ON Tower to further consolidate its position within the Portuguese telecommunications infrastructure market.
The acquisition will see ON Tower taking ownership of macro-sites that are essential for supporting wireless communication networks across the country. Notably, the agreement does not specify any financial terms; however, it outlines an initial lease period of 15 years, with options for successive extensions of the same duration.
Presently, ON Tower oversees approximately 6,400 sites in Portugal, while additional micro-sites are managed through partnerships with OMTEL and Towerlink Portugal, Unipessoal, Lda. This latest acquisition builds upon a 2020 agreement wherein Cellnex secured 100% of NOS’ tower portfolio, comprising around 2,000 sites.
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Why it’s important
This acquisition marks a significant step in ON Tower’s ongoing expansion strategy within Portugal, reinforcing its commitment to enhancing the nation’s telecommunication infrastructure.
By adding these six macro-sites to its existing portfolio, ON Tower aims to bolster its capacity to deliver robust wireless communication services, thereby catering to the growing demand driven by technological advancements and increasing mobile data consumption. Moreover, this move underscores the importance of strategic partnerships between telecommunications providers and infrastructure operators, facilitating a more efficient deployment of services and potentially reducing operational costs. The deal also highlights the dynamic nature of the telecommunications sector, where continuous investment in infrastructure is critical to maintaining competitiveness and meeting the evolving needs of consumers and businesses alike.
As the transaction awaits approval from the AdC, stakeholders have until September 10, 2024, to submit their views on the matter, ensuring a transparent process that considers the broader implications of the deal for the Portuguese market.
