Renta 4 |The five main European telecommunication operators ((Telefónica, Orange, Vodafone, Deutsche Telekom and Telecom Italia) would be trying to establish an alliance which would allow the sharing of the open radio access network (Open RAN). This is an architecture which prioritises the interoperability of infrastructures allowing for the development of more efficient mobile communications.
In a report, the operators given five recommendations for this development: these include guaranteeing political support, creating a European alliance for next generation communication infrastructures and a road map for innovation. In addition, obtaining financing and tax incentives and promoting European leadership in standardised material. This report predicts revenues of 36.1 billion euros in 2026 for global suppliers of Open RAN
Valuation:
Despite this possible alliance between the big operators, the Open RAN still represents an important growth opportunity for Cellnex. In terms of profitability, practically identical to the acquisition of points of presence. It will allow for the reinforcement of relations with clients, as well as expansion within the supply chain of the mobile telecommunications business. Open RAN will always require the emitting points (towers and radio transmittors) currently used by the operators, which means there will be no impact on the use of its infrastructures. The sharing does not imply a major threat for them, given that their contracts are protected with respect to any kind of active exchange between operators. Open RAN allows it to expand its range of services via adjacent assets (fiber, data centre..) and the mutualisation of the radio due to the standardisation of the active equipment.
We reiterate our positive stance on the stock: Overweight, TP 75,57 euros.
