Sphere No.48 (Jan 2020)

EUROPE There are a series of related services that CK Hutchison Networks can develop including provision of space on the site, energy supply to devices on the tower, site planning, design and construction management and site access management. The next wave The next wave of telecoms is already upon us with 5G, IoT, drones, autonomous vehicles and mobile cloud computing, all asking more of the telecom network. The technology can only be quickly brought to bear in a reliable manner by a global company that has a strong structure and strong fiscal position leading into the 21st century. CKHH has created a new, responsive and powerful set of consolidated entities to best position CK Hutchison Group Telecom and CK Hutchison Networks to tackle the future. The next wave of telecoms is already upon us with 5G, IoT, drones, autonomous vehicles and mobile cloud computing, all asking more of the telecom network. 3’s Connected World << 53.6 million customers CK Hutchison Group Telecom combines the Group’s European tower assets into one company: CK Hutchison Networks. The Hong Kong and Macau assets (another 9,300 towers) may join in the future. Currently, it means that 28,500 towers across Europe will be owned by CK Hutchison Networks. This combined model is popular with investors who see significant upside in tower asset managers. This consolidation will make CK Hutchison Networks the fourth largest such company in Europe. Investors also like the visibility that is made possible by combining the assets. They can more easily evaluate the tenancy ratio (how many mobile operators are, on average, using a tower) for companies and judge their potential for revenue growth and determine the implied value per site. 28,500 tower assets across Europe 4th largest tower company in Europe 5G ready 8 markets Sphere #48 2020 16 HONG KONG AND MACAU