RBC Global Tower Review

Research evidence excerpt

RBC Global Tower Review

Operating Trends

EMEA & Latam Operating Trends

▪Europe: Based on our discussions with industry contacts, there is very little M&A ongoing in the broader market at present. Cellnex is in a consolidation phase, with less

strategic optionality vs. prior years. In MNO activity, Vodafone and Three's merger (VOD 51%/Three 49%) in the UK closed in 1H 2025, backed by a commitment to invest GBP

11 billion over 10 years in its 5G network, targeting 99% population coverage with 5G Standalone by 2034. In Italy, the more notable development has been the Inwit tenant

terminations. In March 2026, Swisscom's Fastweb + Vodafone unit served notice of termination of its MSA with Inwit, citing above-market tower costs and the tower company's

refusal to renegotiate, with termination expected by March 2028 under a change-of-control clause triggered in 2020. TIM followed days later with its own termination notice

effective August 2030, or March 2028 if the change-of-control clause is validated by the courts. Inwit maintains both actions are unlawful and that the MSAs remain valid until

2038. Inwit has filed for injunctive relief to block the terminations with initial decisions expected mid-2026. TIM management has outlined a three-pillar tower strategy to

potentially exit Inwit over approximately 10 years, leveraging ~8,500 existing third-party sites, ~6,000 new builds by third parties, and a 50/50 tower JV with Fastweb to develop

an additional ~6,000 sites. For Cellnex, per our discussions with industry contacts, on the topic of corporate restructuring or take-private scenarios that would unlock value: 1)

Restructuring could theoretically simplify the group, allowing slower deleveraging, greater flexibility on asset sales, and freedom from public market scrutiny.