German telecommunications company Deutsche Telekom and Spanish mobile operator Cellnex said Thursday that they would combine their tower businesses in the Netherlands and create a joint fund to invest in digital infrastructure.
Once completed, Cellnex’s Netherlands subsidiary will operate 4,314 sites, including 180 new sites to be built over the next seven years. Cellnex will own 62% of the resulting project, while Telekom will own 38% through the fund.
The two companies will become the main investors in the newly created Digital Infrastructure (DIV) project, an investment fund focused on digital infrastructure in Europe, and Deutsche Telekom will add its T-Mobile Infra project to the fund.
Deutsche Telekom will have to pay 250 million euros ($303 million) and contribute to the DIV project, meaning that the company will enter into a capital commitment of about 400 million euros in the investment fund, and Cellnex has also agreed to commit €200 million of capital from the DIV project.
The telecom towers market has witnessed increasing interest from investors in light of a reality full of investments with low returns, thanks to its success due to the constant financial flows associated with inflation, in addition to the prospects it provides for development in the future, especially with the expansion of the new generation of 5G internet.