TweakTown
Tech content trusted by users in North America and around the world
5,928 Reviews & Articles | 38,191 News Posts

T-Mobile leases 7,200 cell sites in exchange for $2.4B

T-Mobile sells the rights to 7,200 of its cell towers for $2.4B, hopefully uses money to fund LTE ro

| Business, Financial & Legal News | Posted: Sep 28, 2012 7:35 pm

T-Mobile's parent company Deutsche Telekom (DT) has sold rights to 7,200 of it's US cell towers. The idea here is that the company who is buying the rights to the towers will be able to then lease space on those towers to other companies (think: AT&T, Verizon, and others) to bring in income. For T-Mobile to manage that would be a lot of extra work.

 

TweakTown image news/2/5/25985_1_t_mobile_leases_7_200_cell_sites_in_exchange_for_2_4b.jpg

 

So, it's easier for T-Mobile to sell the rights to these 7,200 towers, which is a small portion of their 51,000 total, to a company that only manages leasing tower space to companies. Part of the $2.4 billion will be used to pay off some of DT's debt and some of it will be used to fund T-Mobile's network upgrades and LTE rollout.

 

Crown Castle, the company who is buying the rights to these towers, will own and/or manage 30,000 towers in 50 U.S. cities after the deal is complete. Crown Castle will have the option to buy the towers after about 28 years. For now, they can only manage them. T-Mobile will be a tenant at those towers for a minimum of 10 years.

NEWS SOURCES:Gigaom.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Post a Comment about this news

Latest Tech News Posts

View More News Posts

TweakTown Web Poll

Question: Facebook's acquisition of Oculus VR will...

Improve Oculus Rift Development

Hamper Oculus Rift Development

Completely destroy Oculus Rift Development

Let's wait and see, I'm not sure

or View the Results

View More Polls

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases