Zegona Communications is reportedly mulling its future with Vantage Towers in Spain.

The UK investment firm, which acquired Vodafone Spain for €5 billion ($5.4bn) earlier this year, is threatening to pull the plug on its tower agreement with Vodafone-owned Vantage Towers if it doesn't get cheaper rates, reports Bloomberg.

Bloomberg reports that Zegona has spent the last few months in tense negotiations over how much Vodafone is paying to use Vantage's network infrastructure.

Zegona is considering using more than one tower operator as a provider to the telco if Germany-based Vantage doesn't reduce its annual fees by about €50 million ($54.5 million).

Vantage Towers was spun out of Vodafone Group, going public in 2021. A year later, Vodafone sold off some of its Vantage Towers unit, creating a new joint venture with KKR and Global Infrastructure Partners (GIP) called Oak Holdings in the process. In June, the company sold an additional 10 percent stake in its holding.

At present, Zegona leases more than 6,000 towers from Vantage. It's not known how much its contract with Vantage is worth. Tower deals between carriers and tower operators typically run for decades.

Other tower companies including Cellnex Telecom SA, American Tower Corp., and Orange SA’s Totem have reportedly been approached over the viability of a switch.

Vodafone has around 13.5 million mobile customers in Spain. The telco has previously failed to secure a merger with MásMóvil, as MásMóvil instead struck a merger deal with Orange.

Founded in 2015, Zegona was set up by former Virgin Media executives Eamonn O'Hare and Robert Samuelson to invest in European telecom opportunities.