Crown Castle reached an agreement to acquire approximately 7,200 towers from T-Mobile USA for $2.4 billion in cash.
The deal gives Crown Castle the exclusive right to lease and operate the T-Mobile towers for a weighted average term of approximately 28 years. In addition, Crown Castle will have the option to purchase such towers at the end of the respective lease terms for aggregate option payments of approximately $2.4 billion, which payments, if exercised would be primarily between 2025 and 2048.
Crown Castle said the deal helps it to consolidate its share of the telecom tower leasing business. T-Mobile USA said the cash will help it to accelerate its 4G rollout.
“T-Mobile USA is working aggressively to make our 4G network stronger, faster and more dependable for consumers, and this transaction will support our ongoing $4 billion network modernization initiative that is the cornerstone of this effort as we work tirelessly to continue to deliver our amazing 4G services nationwide.”
- Earlier this year, Crown Castle International acquired NextG Networks for approximately $1.0 billion in cash. NextG, which specializes in outdoor distributed antenna systems (“DAS”), currently has over 7,000 nodes-on-air and a further 1,500 nodes under construction. In addition, NextG has rights to over 4,600 miles of fiber. Over 90% of NextG nodes are in urban and suburban locations, with 80% in the top ten US metropolitan areas, including New York, Los Angeles, Chicago and Dallas Fort Worth. The NextG assets are expected to provide significant growth, as they currently average only 1.25 tenants per network. Crown Castle said this deal made it the largest independent DAS operator in the US, with approximately 10,000 nodes and 26 venues in operation or under construction. Previously, Crown Castle owned, operated and managed over 22,000 and approximately 1,600 wireless communication sites in the US and Australia,
- In September, Deutsche Telekom appointed John Legere as CEO of T-Mobile USA, replacing Jim Alling, who will return to his position of Chief Operating Officer.
Legere previously was CEO of Global Crossing.
