Crown Castle Announces Contractual Terms Related to AT&T and T-Mobile USA
Published on: 21st Mar 2011
Note -- this news article is more than a year old.
Towers network operator, Crown Castle has issued a statement confirming its exposure to the planned merger of T Mobile USA and AT&T. Without stating what impact it expects from the merger, it is inevitable that the company will see some network consolidation once the transaction is completed.
At the end of last year, AT&T and T-Mobile represented 21% and 11%, respectively, of Crown Castle's consolidated revenues. Further, there are approximately 4,000 Crown Castle towers on which both carriers currently reside. Crown Castle's revenue from T-Mobile on these 4,000 towers represents approximately 6% of Crown Castle's consolidated revenues. In addition, there is an average of approximately 12 years and 7 years of current term remaining on all lease agreements with AT&T and T-Mobile, respectively.
As previously disclosed, Crown Castle expects to have during 2011 approximately USD460 million of investment capacity, before accessing any external financing, that could be invested in activities related to its core business, including share purchases, acquisitions and new site construction.