Sprint Rids Itself of All Towers
Filed in archive Announcements by Jason Giacchino on September 26, 2008
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Sprint announced yesterday that it had completed the sale of about 3,080 towers to TowerCo for $670 million. Sprint will lease the towers back from the company it sold them to, freeing up cash to pay down its debt in the process.
The two companies involved have signed a long-term leasing agreement whereby TowerCo will provide Sprint with towers to support its CDMA, iDEN and WiMAX networks.
Sprint will use the money raised from the sale to pay down some of its $24 billion in debt. In recent years Sprint has fallen far behind rivals AT&T and Verizon Wireless in subscriber growth and profitability.
However, Sprint is by no means the first carrier to move away from owning their own towers. Instead, companies like American Tower, Crown Castle International and smaller players like TowerCo, have taken over ownership of towers and then leased them back to the carriers who sold them.
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