Cordiant Digital Infrastructure-owned Emitel has signed a long-term tower agreement with Orange Polska to expand mobile network coverage in the country.
Cordiant announced the agreement last week, noting that Emitel will construct hundreds of new telecoms towers for Orange over the next few years.
As part of the agreement, Orange will commit to pay a recurring fee under a long-term contract for each site built based on industry-standard terms as the anchor tenant.
Emitel, Cordiant's Polish subsidiary, will support the buildout of the towers as part of a build-to-suit (BTS) model.
Emitel will be able to sell the remaining space on each tower to other MNOs.
Cordiant stated that the capital expenditure for this project is expected to be funded by Emitel’s free cash flow.
At the end of last year, Emitel operated 762 communications towers and names all four of Poland's major MNOs as tenants.
The company said it has a tenancy ratio of 1.4 across 300 towers that have been constructed under the BTS model.
Cordiant acquired Emitel in 2022. Since completing that acquisition, Emitel has expanded its tower portfolio by 27 percent and increased associated revenue by 37 percent.
According to Cordiant, the agreement with Orange will enable Emitel to expand its nationwide tower portfolio to more than 1,000 sites.
“Our many years of experience in building and managing telecommunication infrastructure enable us to support the expansion of the mobile network in Poland, meeting the growing needs of operators and users," said Maciej Pilipczuk, CEO of Emitel.
Steven Marshall, co-founder of Cordiant Digital Infrastructure, added: "As a result, the company will play a key part in expanding Poland’s 5G telecommunications network and expects to earn incremental revenues for the duration of the project. Wins such as this validate our buy, build & grow model and create real value for our shareholders.”
Marshall previously noted in 2022 when Cordiant acquired Emitel that the deal was part of the company's "buy, build & grow philosophy."
Earlier this year, Cordiant acquired BT's Irish wholesale unit via its subsidiary Speed Fibre Group.
