TOTEM TowerCo, Orange's tower subsidiary, has added 173 sites to its portfolio in France and Spain. TOTEM, founded in 2021, operates towers, flat roofs, and other sites throughout France and Spain.
The tower division now owns 27,292 towers in two countries. Last year, TOTEM reported revenues of EUR 686 million— an increase of 0.3 percent.
Orange attributed the growth to a 3.6 percent increase in hosting revenues, including a 6% increase in hosting revenues from third-party customers.
At the end of 2023, Orange reported that external customers accounted for 16.6 percent of hosting revenues.
TOTEM reported 27,000 towers during a March 2023 filing, suggesting relatively flat growth.
During a period when telcos across Europe, including Vodafone, Deutsche Telekom, and CK Hutchison, have all sold significant stakes in their respective TowerCos, Orange has stated that such assets are an important part of its business. By maintaining control over its tower infrastructure, Orange can continue to leverage its network assets to enhance service quality, expand coverage, and generate revenue through leasing arrangements. Additionally, retaining ownership of towers allows Orange to retain strategic flexibility and agility in responding to market dynamics and evolving customer demands.
The Importance of Towers in Telecom
Towers serve as the backbone of telecommunications networks. They are essential for transmitting signals between devices, enabling communication between users, and facilitating data transmission over large distances. Without towers, the reach and effectiveness of telecommunications networks would be severely limited. By deploying multiple towers and optimizing their placement, companies can reduce congestion, improve signal strength, and enhance the overall quality of service for their customers.
Apart from providing services directly to customers, companies can also lease tower space to other telecom operators, broadcasters, or various organizations needing infrastructure for communication purposes. This leasing model generates additional income streams for telecom companies.
Towers are considered strategic assets within the telecommunications industry. They are long-term investments that contribute to the competitiveness and sustainability of a telecom company's business. Owning and managing towers can provide companies with greater control over their network infrastructure, allowing them to adapt more effectively to changing market conditions and technological advancements.
