Deutsche Telekom Starts Tower Sale Process

According to media reports, Deutsche Telekom started the sales process for its mobile towers business. The move is a part of broader efforts to maximize the value of its infrastructure assets.

The operator is reportedly working with Goldman Sachs as an adviser in the sale of its 40,600 masts, which could fetch up to €18 billion. The group did not want to comment on any speculation but said it is open to various options on the tower assets.

In late 2021, DT CEO Tim Hoettges said he was interested in finding a partner for its tower business. German media later reported the operator would begin exploring a sale of the assets early this year. Spain-based tower company Cellnex, as well as America Tower, have been cited as potential buyers, in addition to private equity groups or competitor operator tower businesses including Vodafone Group’s Vantage Towers and Orange’s Totem.

Deutsche Telekom owns infrastructure in several European countries, with by far the largest concentration in Germany, where it has almost 33,000 towers. Subsidiary GD Towers holds the domestic sites along with 7,000 in Austria. Tower spin-offs are an attractive option for operators because the independent units can lease space to multiple operators. Others have pursued sales to generate income from the assets.