Sprint Nextel to Sell Cell Towers for $670 Million
July 25, 2008 – 11:54 pmSprint Nextel has agreed to sell nearly all its cell phone towers to a private-equity-backed firm called TowerCo in a deal that will generate about $670 million in cash for the struggling wireless carrier.
The nation’s third-largest wireless provider said Wednesday it plans to lease space on the towers for its wireless phone and broadband operations, which it said was cheaper than owning the towers outright.
In recent years, wireless carriers have moved away from owning their own cellphone towers. Instead, companies like American Tower and Crown Castle International and smaller players like TowerCo have taken over ownership of towers and leased them to carriers.
“By leasing rather than owning these network facilities, we can better focus on our core business of providing communications services to consumers, businesses and government customers,” said Bob Azzi, senior vice president, Field Engineering and Operations, Sprint Nextel. “Significantly, this transaction provides Sprint Nextel with additional liquidity which gives us greater flexibility in managing our company.”
Sprint Nextel said it will finalize the number of towers being sold and the price when the sale closes within 90 days.
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