AT&T, Verizon strike tower arrangement in hard work to diversify sellers


AT&T Inc and Verizon Communications Inc explained on Monday they have agreed to lease hundreds of new mobile towers from operator and operator Tillman Infrastructure, a shift they hope will give them more leverage in negotiations with major U.S. tower sellers.

FILE Photograph: The Verizon symbol is witnessed on the side of a truck in New York Metropolis, U.S., Oct thirteen, 2016. REUTERS/Brendan McDermid/File Photograph

NEW YORK: AT&T Inc and Verizon Communications Inc explained on Monday they have agreed to lease hundreds of new mobile towers from operator and operator Tillman Infrastructure, a shift they hope will give them more leverage in negotiations with major U.S. tower sellers.

The U.S. mobile tower market place is at this time dominated by 3 corporations: American Tower Corp, SBA Communications Corp, and Crown Castle Intercontinental Corp.

The arrangement announced on Monday demonstrates that Verizon and AT&T, the No. one and No. 2 greatest U.S. wi-fi carriers, are willing to strike deals with other sellers to safe superior rates for the towers they use to transmit wi-fi signals, analysts and organization officials explained.

Both of those carriers are in search of to insert to their community ability at a time when buyers are applying increasing amounts of mobile knowledge.

Carriers are “always hunting for alternative partners to lessen their dependence on the big 3 men,” explained Jonathan Chaplin, analyst at New Road Exploration.

As aspect of the arrangement, Tillman will build the towers and AT&T and Verizon will serve as anchor tenants. Development will commence in the 1st quarter of 2018.

“This is Verizon and AT&T doing the job collectively with a new service provider to place some opposition into the blend,” explained Susan Johnson, AT&T’s senior vice president of supply chain, in an job interview, adding, “we do definitely hope this will be a foreseeable future model.”

Shares of American Tower had been flat in afternoon buying and selling, when shares of SBA Communications had been down one.9 per cent and Crown Castle was down .3 per cent.

(Reporting by Anjali Athavaley Enhancing by Frances Kerry)



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