Terrestrial switch‑off threatens Arqiva’s value
Digital 9 Infrastructure has written down the value of its roughly 52 per cent stake in UK broadcast infrastructure operator Arqiva to zero, citing expectations that its equity will fall below the value of the vendor loan note used to fund the 2022 acquisition. Macquarie has also exited its 26.5 per cent holding as the UK advances plans to switch off terrestrial TV and radio, although broadcast TV is legally guaranteed until at least 2034 and reports suggest up to 10 million people could lose TV access if transmission ends in 2035.
Key Takeaways
- D9 values its Arqiva equity at zero, citing risk that equity will sit below the vendor loan note from the 2022 acquisition.
- Macquarie has divested its 26.5% stake, signaling investor wariness about broadcast asset longevity.
- Arqiva’s ~1,500 masts face demand erosion if DTT/radio are switched off after the current 2034 legal protection.
- Policy uncertainty creates both stranded‑asset risk for tower owners and opportunistic plays for telcos, edge/cloud providers, and infrastructure buyers.
Why It Matters
This is a bellwether moment for the broadcast-to-IP transition: a major tower owner is being marked down not for operational failure but for policy-driven obsolescence. Streaming businesses, telcos and investors should treat the potential DTT shutdown as a capital‑markets and distribution risk — and an opportunity. If Arqiva’s tower revenue declines, expect asset re‑purposing (private networks, 5G, edge compute) or consolidation. Regulators will be forced to weigh digital inclusion and PSB obligations against efficiency gains. In short: broadcast shutdowns can create stranded infrastructure, shift strategic value to IP delivery and redraw who owns last‑mile reach.
Read full article at tvbeurope.com
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