When buzz started spreading about Crown Castle International buying AT&T towers, many people may have questioned AT&T’s motive behind this sale. While AT&T’s main focus is providing their customers with exceptional mobile service, they have also taken to constructing cell sites in order to broaden the mobile coverage in many areas across the U.S. So why sell them now?
According to Trefis, “the sale of towers will help AT&T better allocate its cash to more important strategic ventures and take advantage of the surging data demand in the U.S. as well as abroad, it is not without its long-term risks.”
AT&T will be able to take the cash from the sale of its towers (reported to reach around $5 billion) and invest it into expanding their 4G LTE network. AT&T believes that they will generate more revenue through their LTE transition and possible overseas acquisitions than they can by keeping their towers.
“With subscriber growth stagnating, AT&T is looking to drive LTE adoption and promoting its Mobile Share data plans at the same time to increase ARPU levels. While shared data plans lock in users by allowing them to add more devices to their service plan, increasing 4G LTE adoption will incentivize the usage of more data-intensive applications and drive data consumption. Further, LTE as a network technology not only supports higher speeds but is also more efficient than current 3G networks at handling data, reducing AT&T’s maintenance and handling costs as LTE usage grows. However, all this will require continued 4G investment to not only increase LTE coverage but also improve network capacity,” Trefis says.
While AT&T will continue to build up their 4G LTE network throughout the U.S., they may also look into expanding the network into Europe. Oversees, less than 2% of people are on an LTE connection where as approximately 19% of the American population is on the network.
October 14, 2013 | Tower-Pro
AT&T hopes to reach over 270 million people with their 4G LTE technology by the end of the year. As a way to reach this goal, they have upgraded the equipment on towers in 14 additional markets across the United States.
- Jackson, WY
- Denver, CO
- Gillette, WY
- Sanford, NC
- Hickory, NC
- Lewiston, ME
- McAlester, OK
- Wilmington, NC
- Bloomington, IL
- Tuskegee, AL
- Decatur, IL
- Jacksonville, NC
- Huntsville, UT
- Sheridan WY
Over the past five years, AT&T invested nearly $98 billion into its wireless and wireline networks across the country. Since 2008, AT&T has invested more capital into the U.S. economy than any other public company. (Source: AT&T)
October 10, 2013 | Tower-Pro
There was a steady buzz of excitement throughout the PCIA’s 2013 Wireless Infrastructure Show earlier this week, but when Bloomberg reported that AT&T is close to selling towers to Crown Castle the questions and curiosity only increased.
“AT&T, the largest U.S. phone company, is near an agreement to sell its wireless towers to Crown Castle International Corp, people familiar with the matter said,” Bloomberg reported.
While there were no specific details given, AT&T has been looking to sell some of their towers for a few months now. This news broke back in September, but now AT&T may have found the perfect offer.
“People with knowledge of the matter said in September the assets could fetch $5 billion.The sale would bolster AT&T’s balance sheet as it undertakes a $14 billion network upgrade, plans a stock buyback that may top $11 billion, and considers acquisitions in Europe,” according to Bloomberg.
No one from AT&T or Crown Castle was willing to comment on this news so it’s still uncertain whether this deal will be finalized or not. AT&T has about 10,000 towers, which generate about $326 million in annual revenue as other companies pay to lease space on the facilities, according to JPMorgan research analyst Phil Cusick. The towers may contribute cash flowof about $216 million a year, and a sale at 17-times that figure would fetch about $3.7 billion, he said in a note in August. (Source: Bloomberg)
October 10, 2013 | Tower-Pro
AT&T has proposed constructing a tower at property owned by the Boys & Girls Club of Philips County in Helena, Arkansas. AT&T has had many complaints of poor cell phone service in this area and they are looking to build a permanent tower. While waiting for this tower to be built, AT&T is hoping to receive authorization to place a temporary 60-foot tower on wheels in the selected location to improve service immediately.
The planning commission will conduct a public hearing at 4:30 p.m. Wednesday, Oct. 9 at the city hall on Perry Street for the purpose of receiving comments and or questions regarding the installation of a permanent cellular tower.
October 4, 2013 | Tower-Pro
With the beginning of fall comes the start of football season, which brings many people to the jam packed stadiums to watch their favorite teams play. While this is a favorite American pastime, it can also be stressful if you get separated from your group and have no cell phone service. This often happens when thousands of people are packed into a sports arena all trying to use the same network. This is why AT&T has upgraded their 4G LTE Distributed Antenna System in Arkansas’ Donald W. Reynolds Razorback Stadium.
“When our customers head out to the stadium to cheer on the home team, we want them to have a great network experience throughout the game no matter what they’re doing – whether that’s making a call, checking email, downloading apps or surfing the Internet,” said Ed Drilling, president of AT&T Arkansas. “With initiatives like Project VIP, we’re continuing to invest in the wireless network, and providing enhanced wireless coverage at Donald W. Reynolds Razorback Stadium is just one way that we’re investing in Arkansas.”
The upgraded DAS installation includes many strategically-placed antennas that will distribute AT&T’s wireless network coverage throughout the stadium. DAS has the ability to provide enhanced, consistent wireless coverage to customers in indoor or outdoor spaces where geographical limitations – terrain, building construction, etc. – or crowd density might otherwise prevent an optimal wireless experience.
“Fans want to be able to immediately share those special moments during Razorback games with friends and family – whether that’s by sending a photo, a video, a text message, or making a call,” said University of Arkansas Vice Chancellor and Director of Athletics Jeff Long. “As part of our efforts to enhance the overall Razorback game day experience, it is important we engage our fans through their wireless device. We appreciate AT&T’s significant investment and commitment to providing Razorback fans with the best possible wireless experience.”
October 4, 2013 | Tower-Pro