Verizon is about to sell their towers, should you?Posted September 18, 2014 by admin
Verizon Communications Inc. CFO Fran Shammo stated the $4.83 billion AT&T Wireless received for selling its wireless towers opened the company’s eyes to the potential benefits of a similar transaction.
Verizon has the only large portfolio of towers left to purchase by the tower companies. Verizon has an estimated 13,000 to 15,000 towers and continues to grow it’s cell network.
Wireless carriers including AT&T and T-Mobile have sold it’s tower’s as a way to raise cash at a time when tower companies like Crown Castle International, American Tower Corp. and SBA Communications have been flushed with cash and are buyers. In December, AT&T sold Crown Castle 600 towers and the exclusive rights to lease 9,100 more towers for an average of 28 years.
The AT&T deal with Crown Castle gave the carrier immediate capital for potential acquisitions, site upgrades and spectrum bids. By leasing the towers instead of selling them outright, AT&T preserved its rights to get additional space on the sites to meet it’s future demands for capacity.
Crown Castle also acquired the rights to operate 7,200 T-Mobile towers for $2.4 billion in 2012.