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Complementary Proximus information for investors and analysts to the announcement of Proximus

Proximus and Orange Belgium join forces to develop the mobile access network of the future

Today Proximus announced together with Orange Belgium the signing of a term sheet to reach a mobile access network sharing agreement by the end of the year. The ambitioned active sharing agreement foresees Proximus and Orange Belgium to consolidate their existing Radio Access Networks (such as Masts, Antennas, Radios, Base stations, …) into a shared common network. The sharing will be applicable across all technologies (2G/3G/4G/5G) and at national level. The shared network will improve coverage, with the consolidated number of mobile sites expected to be about 20% higher compared to each operator’s current stand-alone radio access network.

Proximus expects the ambitioned agreement to generate a very good return.

Depending the outcome, the planned scope of the sharing agreement would lead to an estimated recurring annual cash flow benefit of €35-€40 million for Proximus as of 2024, resulting from a lower opex and capex need to operate its Mobile network after the consolidation. Opex savings include lower rental fees, energy, repair and maintenance. Savings in capex are mainly related to lower investments needed for 5G deployment, new sites and site relocation.

To enable the mobile network sharing a set-up investment is required, estimated at around € 140 million in total over the 3-year period 2021-2023. This cost is expected to be partly compensated by some initial benefits of the shared network. Therefore, in comparison with its stand-alone projections, Proximus estimates the incremental cost (capex and opex) to be limited to about € 75 million, spread over 2021-2023.

No meaningful impact is expected for 2019 and 2020.

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