---

CCPC gives go-ahead to phone-tower merger

The competition watchdog has given the go-ahead for a proposed merger between two companies that own towers used by mobile-phone operators. 

The approval is subject, however, to binding commitments from the companies that include the sale of some sites. 

In November, the Competition and Consumer Protection Commission (CCPC) set out its concerns about how the proposal from US-based Phoenix to buy Cellnex could affect competition in the ‘passive infrastructure’ market. 

The watchdog described passive infrastructure, which includes towers or masts, as “crucial” for mobile-network operators and other service providers. Mobile operators fix active network equipment to it – including antennae and dishes

Concern on prices 

The CCPC’s potential concerns included an increase in market concentration through the loss of close competition between Phoenix and Cellnex, resulting in higher prices and/or lower service quality for customers and, ultimately, mobile-phone users.  

Phoenix has now made binding commitments to the CCPC that include the sale of sites in areas where the effect of the transaction would be to reduce the number of competitors offering hosting services from three to two, or from two to one.  

The commitments also include a provision to sell off new sites to be developed within the same areas, where the new sites are part of an existing agreement between the merging parties and a mobile-network operator. 

Independent trustee 

According to the CCPC, these commitments will allow a competitor to enter or expand in the market, and will replace competition lost due to the merger. 

To ensure compliance with the commitments, an independent monitoring trustee will be appointed.  

Phoenix entered the Irish market in 2020, when it bought Eircom’s passive-infrastructure assets. Cellnex owns Cellnex Ireland Limited and Cignal Infrastructure Limited in Ireland.