Sprint may sell its towers!

[bobolito]

Sprint confirms it may sell towers

by DAN MEYER
July 23, 2004 12:32 PM EST

Sprint Corp.’s often rumored plans to sell off its significant tower holdings could be getting closer to a reality as the company reported during its second-quarter conference call that it is exploring strategic initiatives for its approximately 6,300 cellular towers that analysts noted could be worth around $1 billion on the open market.

A number of industry analysts noted last week that Sprint has recently begun offering its tower “book” to potential suitors possibly including AAT Communications Corp., Global Signal Inc., American Tower Corp. and Crown Castle International Corp., though the potential $1 billion price tag could be tough for most to swallow.

AAT told RCR Wireless News last week that it was looking at using proceeds from its recently closed $325 million senior credit facility for acquisitions. The facility includes a $200 million Term Loan B, a $75 million delayed-draw Term Loan A and a $50 million revolver, which the company originally said it would use to repay debt, increase its cash balance and to fund new acquisitions and tower development.

“This facility will leave us with a cost-efficient capital structure and flexibility for growth,” said Jerry Kent, AAT’s chief executive officer.

Crown Castle recently announced it is selling off its U.K. business that includes 3,600 tower sites for more than $2 billion and that it could use some of those proceeds to invest in new U.S. business opportunities.

Raymond James analyst Ric Prentiss wrote in a research note that shares in American Tower and Crown Castle were trading down last week due to their potential interest in Sprint’s towers, though he thought a more likely bidder would be one of the other companies.

“While we expect all tower companies to at least get the book and take a look we think the more likely buyer of Sprint Towers will be Global Signal or a private tower company like [American Tower],” Prentiss noted.





http://rcrnews.com/cgi-bin/news.pl?newsId=18955

[larry]

Did you have to post this one Bobolito? You know how much I like sprintsitesusa.com

[jones]

I don't know who will be Interested in their Rooftop; since the owner of the Building might have agreed to only One Carrier.
It still a good Move if Sprint wants to Move On to other Areas.

[Sprint PCS 411]

What?

So will their be no more Sprint PCS ?

Will they sell all their towers and MVNO ?

I am confused

[axvx8xoxr]

I'm sure if they did sell them they'd get a large sum of money for it, and some other carrier would be willing to cough it up to improve their coverage.

[AnthroMatt]

Maybe Sprint would shave some $$$ off that approx $1 billion price tag in exchange for free lifetime leasing on the towers.

[Sprint PCS 411]

so what will happen to sprint PCS will there be no Sprint PCS anymore or what?

Will they just sell towers in places they already have more than enough coverage?

Will they sell their whole network?

Will they just be a regional carrier from now on ?

HELP ME I AM CONFUSED... i was looking into Sprint PCS and now don't know about going with them if they are selling their towers (coverage)

[TNDan21]

From what I understand if Sprint PCS sells there towers to somebody else. They will now be leasing from that company. This could save Sprint PCS some money and allow other companys to locate on those sites. Don't worry this shouldn't effect your Sprint service. Infact if they sell there towers off and lease it might save them some money and allow them to focus on improving coverage within there network.

Correct me if I am wrong. Larry?

[AnthroMatt]

I think you are right Dan. They are just selling the actual, physical towers not their their licenses so service will remain unchanged.

[Sprint PCS 411]

That is a big releif

[ehcruzan]

Originally Posted by AnthroMatt

Maybe Sprint would shave some $$$ off that approx $1 billion price tag in exchange for free lifetime leasing on the towers.

I'm sure they would love such a deal ...hey, we can all dream, can't we

[larry]

Originally Posted by TNDan21

From what I understand if Sprint PCS sells there towers to somebody else. They will now be leasing from that company. This could save Sprint PCS some money and allow other companys to locate on those sites. Don't worry this shouldn't effect your Sprint service. Infact if they sell there towers off and lease it might save them some money and allow them to focus on improving coverage within there network.

Correct me if I am wrong. Larry?

Yes Dan that's correct. They could stand to gain a lot from not owning those towers anymore. Some of that money could and will go towards making additonal network improvements. I think it will be a good move even if we no longer have a sprintsitesusa.com.

[TNDan21]

If Sprint sells there towers I hope they use some of that money to buy the rest of Horizon PCS out. I want that company gone period. It's the worst of the Sprint affliates IMO. I know Sprint bought out most of Horizon's VA markets from what I understand but they are still around. My area is still under the control of Horizon PCS.

[AnthroMatt]

Originally Posted by TNDan21

If Sprint sells there towers I hope they use some of that money to buy the rest of Horizon PCS out. I want that company gone period. It's the worst of the Sprint affliates IMO. I know Sprint bought out most of Horizon's VA markets from what I understand but they are still around. My area is still under the control of Horizon PCS.

I'm guessing most or all of the money will go to pay of some debt!

[larry]

But of course less dept means more money to invest in the network. It's a trickle down effect.

[AnthroMatt]

And more employees to lay off! Wow they will save a ton!

[agentHibby]

They could do a deal if they sell them to someone like American Tower. 1 year free rental. I am guessing Sprint could take that money and countinue to build more towers in areas that they have some dead spots in. I don't see them right now going into many new markets (unless it in the areas where they need to meet 10 year builtout requirements). Sprint has very few metros not covered so only rural cites are left and they probably won't go into them yet. Buying out Horizon, Airgate/iPCS is good idea too. They could then have Qwest and AT&T buy some of the PCS markets they had. That would be the best move for Sprint!

[jayc]

Good for other carriers though! If I'm not mistaking VZW is very stubborn about colo'ing on Sprint's sites... if another party owns them that means VZW can move on in.

[agentHibby]

Verizon likes tower rental compaines and not renting with another wireless company you are competting with.

[Gamer03]

Originally Posted by larry

Yes Dan that's correct. They could stand to gain a lot from not owning those towers anymore. Some of that money could and will go towards making additonal network improvements. I think it will be a good move even if we no longer have a sprintsitesusa.com.

Hopefully Sprint's service will improve in areas where it is still analog, particularly in areas out west where I visited with my family for the past two weeks.

[bobolito]

Originally Posted by TNDan21

If Sprint sells there towers I hope they use some of that money to buy the rest of Horizon PCS out. I want that company gone period. It's the worst of the Sprint affliates IMO. I know Sprint bought out most of Horizon's VA markets from what I understand but they are still around. My area is still under the control of Horizon PCS.

Is Sprint still fighting with Whoreizon PCS?

[TNDan21]

Ok this site is driving me nuts lately. I plugged in a reply and it didn't show up then I couldn't access WA for a few minutes. As I was saying before the site farted.

Sprint PCS really doesn't need to expand into new markets. They need to work on improving coverage in the current markets they service. While some Sprint PCS markets have great coverage others are very poor. Fixing those markets and improving coverage should be Sprint's Number 1 focus right now.