Cordiant Digital Infrastructure Ltd (LSE:CORD) Polish tower business, Emitel, has signed a long-term deal with mobile operator Orange Polska to build hundreds of new telecom towers, as the country’s appetite for mobile connectivity continues to rise.
Under the agreement, Emitel will roll out the towers over several years, with Orange locked in as the main tenant on each site. In return, Orange will pay a regular rental fee under a long-term contract based on industry norms.
Emitel will also be able to lease extra capacity on the towers to other operators, boosting revenue from each location.
Cordiant said the new towers would be funded using Emitel’s own cash flow. The expansion deepens an existing partnership between Emitel and Orange and reflects the wider push to improve telecoms infrastructure across Poland.
Maciej Pilipczuk, CEO of Emitel, said: "We are pleased that Orange Polska has once again entrusted us to implement a significant infrastructure project.
"As an experienced technology partner, we guarantee the highest execution standards and efficiency in delivering even the most demanding investments for them.
"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."
As of the end of last year, Emitel controlled 762 towers, used by all four of Poland’s main mobile operators.
Around 300 of those were built under similar long-term agreements, typically lasting at least 15 years and including price escalation clauses. Since Cordiant acquired Emitel in 2022, the company has grown its tower count by 27% and boosted revenue from that part of the business by 37%.
In the first nine months of 2024, Emitel reported a 12.1% year-on-year rise in revenue from hosting mobile networks on its towers. The new project with Orange is expected to push its total portfolio past 1,000 sites.
Cordiant is betting on long-term demand for digital infrastructure in Poland, the sixth-largest economy in the European Union.
Economic growth there hit 2.9% in 2024 (well ahead of the EU average) and forecasts suggest the country’s income per capita could outpace Japan’s by 2026, according to the International Monetary Fund.