Pocket money for Carly? T-Mobile sells rights to 7200 towers for $2.4 billion

Pocket money for Carly? T-Mobile sells rights to 7200 towers for $2.4 billion
Seeking money to help pay for an upgrade of its network to LTE, T-Mobile has entered into an agreement to sell the rights to 7200 of its towers to Crown Castle International for $2.4 billion. Under the terms of the deal, the cell tower operator will have the rights to lease and operate the towers for 28 years. Once that time period is over, Crown Castle will have the rights to purchase the towers for an additional $2.4 billion.

One analyst characterized the deal as being "expensive." Industry insiders told Evercore Partners analyst Jonathan Schildkraut that the towers included in the deal were some of the carrier's shorter towers that cost more money to upgrade. T-Mobile is seeking funds to help it build an LTE network. The mobile operator, owned by Deutsche Telekom, is the only carrier among the four major U.S. companies not to offer some level of LTE service. T-Mobile has previously said that it is currently testing LTE service and would start building out its LTE network in 2013.

The deal is expected to close in the fourth quarter. Crown Castle is said to have beaten out American Tower Corp. and Global Tower Partners to win the deal. Crown already owns 30,000 towers on which carriers like AT&T or T-Mobile lease space to put up their cellular radios. Considering that T-Mobile has already committed itself to spending $4 billion over the next three years to build out a 4G LTE pipeline, the transaction goes a long way in helping the carrier fund its future plans.

source: CNET

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17 Comments

1. NokiaLumia920

Posts: 28; Member since: Sep 29, 2012

At least TMobile is in a better state than the stupid CEO ruling Sprint.

2. spoonb1

Posts: 77; Member since: Jan 02, 2010

I wonder if the 4 billion they plan to spend is the same 4 billion paid from at&t... Makes you wonder if they might finally align the frequencies in use... And finally get the iphone in 2014 lol

5. cheeseycheeser

Posts: 413; Member since: Mar 24, 2011

Now for 3G in my area ;) But I'd be willing to put up for it anyway BECAUSE DEAR LORD THE PRICES.

6. mas11

Posts: 1034; Member since: Mar 30, 2012

Desperate, Verizon's Lte network is greater than all other networks combined.http://network4g.verizonwireless.com/#/coverage

13. PapaSmurf

Posts: 10457; Member since: May 14, 2012

.... Was this really necessary?

15. mas11

Posts: 1034; Member since: Mar 30, 2012

Yes, it's sad to see people down vote the facts, I mean for god's sake T-Mobile practically begged the FCC to join AT&T. Btw Verizon is ranked as the top network in the U.S. by J.D. Power and Associateshttp://www.phonearena.com/news/More-J.D.-Power-hardware-for-Verizon-tops-in-network-quality-in-5-of-6-regions_id33637

16. nwolfe90

Posts: 1; Member since: Sep 30, 2012

you can have fun paying your 100 dollar bill and then additional fees if you go over you data plan.

17. mas11

Posts: 1034; Member since: Mar 30, 2012

Yeah I actually only pay $67/month since I'm on a family plan with some friends and I have 4GB/month (for just myself) so I'll stick with the best network in America, hell it would cost me more to switch to T-Mobile (a much less developed network).

7. richardyarrell2011

Posts: 510; Member since: Mar 16, 2011

I left Verizon for Tmobile and I'm here to tell you that Tmobile and it's GSM HSPA PLUS 42MPS network simply s**ts all over Verizon and it's CDMA LTE NETWORK. My Samsung Galaxy Nexus on Verizon had dreadful Dbm/asu which meant hideous signal strength and crappy reception. My Galaxy S3 on Tmobile bitch slapped my Verizon Galaxy Nexus senseless. In New York City Tmobile rules Verizon is overrated and overpriced with it's battery draining bloatware filled devices.. Tmobile to the end....

8. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

Eh, Verizon's LTE speeds tend to be about the same speed, if not higher, than HSPA+ 42. Also, LTE uses a lower frequency than HSPA+, so it has better building penetration. It might be better in your area, but those are just general facts. The Galaxy Nexus on Verizon was known to have antenna issues, so that isn't really a good device to base your stance off of. I would've switched to Verizon a couple years ago, if the closest LTE location to me wasn't 60 miles away, and if I didn't know the benefits of being on a GSM network; like being able to basically buy any global device, pop your sim card in, and have it work with 4G. That gave me reason to stick with T-Mobile. And it helped me in the long run also because now Verizon got rid of their unlimited data, and T-Mo just released their truly unlimited data plan, so it works out better I guess. But T-Mobile is really sketchy in my area, I either get Edge, 4G, or nothing. No 3G at all, which is kind of weird.

9. g2a5b0e unregistered

The reason you get no 3G is because T-Mobile upgraded their 3G network to 4G rather than use a completely different technology. What it simply means is that depending on where you are, you'll always get one or the other, but not both.

10. Nadr1212

Posts: 741; Member since: Sep 22, 2012

I hope Tmobile doesn't get distroyed doing this, kinda like how AT&T WIRELESS, NOT AT&T, failed and discontinued

11. timeformiles

Posts: 7; Member since: Apr 26, 2012

to me they should just keep building their HSDPA+ and then wait till LTE II or what ever its gonna be called to come out and then start building on top of that. unless you need LTE in before you can build LTE II then they need to spend alot more money on that.

12. cmikeh2

Posts: 26; Member since: May 09, 2012

T-Mobile did say when it announced its plans for the LTE network that it was going to start at a later LTE revision than the other carriers, so by the end of 2013 T-Mobile will have the same or better quality of LTE.

14. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Well T-Mobile already said they would be deploying LTE Advanced next year. LTE Advanced > LTE.

18. RORYREVOLUTION

Posts: 3131; Member since: Jan 12, 2010

I would love to be on T Mo but sadly there's only EDGE in my area and I'd go crazy.

19. jsjr76

Posts: 24; Member since: Sep 28, 2010

It amazes me how many people that didn't go to Notre Dame, recieve an MBA from Cornell and a Masters in science from MIT call one that did stupid. A man that took a dying company, said give me five years, and in four has accomplished several major feats. He launched the first "truly 4G" network, now has LTE, got the iPhone, and has doubled the stock price in 4. He's hardly stupid. Whatay seem stupid to those who may very well be, running a corporation requires doing things that don't always make sense to laymen, but if you have a concept of how a publicly traded company works, you'd understand. People shouldn't get on here and trash people, it's tacky.

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