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TheStreet Open House

Crown Castle And T-Mobile USA Announce $2.4 Billion Tower Transaction

Stock quotes in this article: CCI

  • Reinforces Crown Castle's position as largest provider of wireless infrastructure in the US
  • Urban-centric portfolio with 83% of the towers in top 100 US markets and 72% in top 50 US markets
  • Strengthens T-Mobile's position within the US market by helping to support funding of previously announced growth initiatives
  • T-Mobile to continue focus on network modernization, LTE launch in 2013 and other previously announced initiatives

HOUSTON and BELLEVUE, Wash., Sept. 28, 2012 (GLOBE NEWSWIRE) -- Crown Castle International Corp. (NYSE:CCI) and T-Mobile USA, Inc. ("T-Mobile"), a subsidiary of Deutsche Telekom, AG ("DT"), announced today that they have entered into definitive agreements pursuant to which Crown Castle will acquire rights to approximately 7,200 T-Mobile towers for $2.4 billion in cash at closing (subject to certain adjustments). Under the definitive agreements, Crown Castle will have 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. The transaction is expected to close in fourth quarter 2012. 

"We are pleased to reach this mutually beneficial agreement with Crown Castle and take another step closer to realizing the bold vision outlined in our Challenger strategy to solidify our competitiveness in the industry by investing in areas where we anticipate the strongest return for our customers," said John Legere, Chief Executive Officer of T-Mobile USA. "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."

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