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Verizon wants to sell and lease their cell towers for cash
Verizon has had a busy last few months dealing with cities who are objecting to the proposed placements of cell towers that Verizon claims are necessory.
- In one case, Verizon wants to install a new tower on a high school football field.
- In another case, Verizon wants to install an antenna on top of a near 70-year-old water tower, “regardless of the local zoning ordinances or site plan requirements.”
- Or how about Verizon installing a tower on that Church?
- Verizon wants to put another tower on a city skyline and hide it as a “pine tree.”
Yet, Verizon is also intent on selling about 12,000-15,000 cell towers according to Verizon Chief Financial Officer Fran Shammo. Verizon’s reasons for the selling of these towers is simple: Verizon wants cash.
In December of last year, AT&T agreed to a deal with Crown Castle International to sell 600 cell towers and the exclusive rights to lease around 9,000 more towers. Typically, Crown Castle will buy some of the towers and acquire a lease on the others for roughly 28 years. After 28 years, Crown Castle has the option to acquire the towers. Basically, AT&T got a lot of cash and continued to have the right to operate a tower for about 28 years.
“The AT&T deal was a good deal for them. It opened our eyes and we said ‘OK, maybe there is a way to get through this and protect our interest and get a deal that is palatable to us’,” Shammo told investors at a conference in Los Angeles, adding that Verizon wants to protect its ability to expand its network when necessary. – TelecomLead
Verizon would like to follow AT&T’s lead (shocker) as AT&T got almost $5 billion for the selling of their cell towers. T-Mobile also sold the exclusive rights to a number of their towers in 2012 to Crown Castle for $2.4 billion.