Published on : Feb 04, 2015
Verizon is reportedly planning to part away with its cell towers and wireline assets to pay costs incurred in spectrum auction and down debts. It is being reported that the company is soon selling these business sectors at an alleged cost of nearly US$15 billion.
News also has it that Verizon is pulling together these resources for sale to complete the takeover of Verizon Wireless from Vodafone Group and the winning bet of AWS-3 spectrum of US$10.43 billion. The bid has the last date of initial down payments set to February 13. The date due for the final payment for completion of the bid is March 2. This suggests that the company, if it finalizes the sale, will do so and complete the selling process as quickly as possible.
Verizon has a resource pool of nearly 15,000 cell phone towers, which may net Verizon up to US$5 billion, as evaluated by JP Morgan Chase in December last year. Any wireline sell could easily add at least US$10 billion more to Verizon’s account.
Of the companies that are considered strong competitors in the buying bid for Verizon’s business segments, Crown Castle International Corp. is one strong contender. Crown Castle International Corp. may consider buying Verizon’s cell towers.
Crown Castle International Corp. already has planned to buy cell towers in similar bids from, T-Mobile US Inc. and AT&T Inc. Telecom company Sprint Corp. leases space from more than 2000 cell towers of Crown Castle International Corp. of the US.
Crown Castle International Corp. also has the largest network of share telecom infrastructure in the with more than 40,000 towers with at least 70% coverage of the top 100 US markets.
American Tower Corp., with more than 28,000 cell towers in the country, is the second strongest contender for the buyout.