11 July 2019
Financial information on the mobile access network sharing agreement
Pursuant to this afternoon’s announcement, Orange Belgium wishes to provide financial information relating to the network sharing agreement with Proximus.
Orange Belgium expects the agreement to deliver cumulative opex (mainly BTS rental costs as well as energy, repair and maintenance, transmission costs) and capex (mostly from 5G network roll-out) savings of €300m over 10 years. This agreement requires initial set-up costs related to de-commissioning and enablements. Orange Belgium expects to spend €130m over the next 3 years.
Overall, the expected return over 10 years is in excess of 3 times of Orange Belgium’s WACC.
About Orange Belgium
Orange Belgium is one of the leading telecommunication operators in Belgium and in Luxembourg through its subsidiary Orange Communications Luxembourg.
As a convergent player, we provide mobile telecommunication services, internet and TV to private clients, as well as innovative mobile and fixed line services to businesses. Our high-performance mobile network supports 2G, 3G, 4G and 4G+ technology and is the subject of ongoing investments.
Orange Belgium is a subsidiary of Orange Group, one of the world’s leading telecommunications operators with a presence in 27 countries. Orange is also a leading provider of global IT and telecommunication services to multinational companies, under the brand Orange Business Services
Orange Belgium is listed on the Brussels Stock Exchange (OBEL).
More information on: corporate.orange.be, www.orange.be or follow us on Twitter: @pressOrangeBe.
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Eric Chang +32 495 55 98 17