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Verizon Explores Sale of Mobile-Phone Towers Worth Over $3 Billion
Verizon Communications Inc., the largest wireless carrier in the United States, is considering selling thousands of mobile-phone towers across the nation, according to sources familiar with the matter. The company has reportedly engaged advisers to assess interest from potential buyers for a portfolio comprising approximately 5,000 to 6,000 towers.
While the potential sale could generate over $3 billion, the discussions are still in the preliminary stages, and there is no certainty that a transaction will occur. Verizon has not made any public comments on the matter.
Historical Context and Strategy
This move is not unprecedented for Verizon. In 2015, the company sold the rights to lease and operate around 11,000 towers to American Tower Corp. in a deal that provided an upfront payment of $5 billion. This previous sale was aimed at raising funds for purchasing airwaves and reducing debt.
Industry Trends
Turning to mobile-phone towers for generating capital is a common tactic among telecommunications companies. For instance, AT&T Inc. sold 9,700 towers to Crown Castle International Corp. for $4.8 billion in 2013, which helped fund upgrades to its network. Given the lucrative nature of such assets, infrastructure firms and strategic buyers are expected to show strong interest in Verizon's current offering.
The potential sale of Verizon's towers is seen as part of a broader strategy to streamline operations and enhance financial flexibility amidst the ongoing competitive pressures in the telecom industry.
