Verizon has reached an agreement to sell over 11,000 of its wireless cell towers to American Tower, one of the leading tower companies in the U.S. The 5.056 billion dollar price tag will enable Verizon to re-acquire the money it spent during the last spectrum auction.
Other wireless carriers have taken the same path, in order to acquire instant funds to utilize toward the improvement of their networks. According to American Tower’s CEO, Jim Taiclet, “We believe that by aggressively marketing these relatively underutilized towers to additional tenants, we will enable faster deployment of this spectrum, accelerating the expansion of broadband coverage throughout the U.S.”
This transaction has not only given Verizon the financial resources it needs to pay off its debt, but it has also given American Tower even more power in the wireless industry.
This will have an impact on property owners who have existing leases on their property. Proper representation is vital when re-negotiating or making changes to any cell tower lease.
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While American Tower has professionals on their side who know the true value of every tower site they currently control and will soon be controlling due to this transaction, property owners should have advocates working for them to determine options to optimize their telecom assets.