TELEFÓNICA UK AND VODAFONE UK REACH NEW LONG-TERM MASTER SERVICES AGREEMENT FOR THEIR PASSIVE TOWER INFRASTRUCTURE AS THEY LOOK TO MONETISE THE ASSET

Telefónica UK and Vodafone UK today announce new Master Services Agreements for Cornerstone Telecommunications Infrastructure Limited (CTIL), their passive tower network infrastructure partnership which is 50:50 jointly owned and managed by the two parties. The new agreements will give each company the opportunity to monetise their assets and come into effect on 1st January 2021, with initial terms of 8 years, with three additional 8-year renewal periods.

CTIL was formed in 2012 through the consolidation of both Telefónica UK and Vodafone UK’s existing basic network infrastructure, including towers and masts, which were transferred to the joint operation. CTIL currently operates c.14,200 macro sites with a 2.0x tenancy ratio (including active sharing) and c.1,400 micro sites. CTIL also provides management services for the anchor tenants for a further c.5,100 third party sites where their active equipment is deployed. The new agreements do not materially impact existing network agreements and will continue to allow CTIL to primarily serve its shareholders as well as some third parties.

Mark Evans, CEO Telefónica UK said: “This is an exciting announcement in our ongoing drive to provide world class connectivity to our customers. The new agreement will allow us to deliver value for our business while investing in our network infrastructure.”

 

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