Sprint Nextel has announced an agreement to sell approximately 3,300 towers to TowerCo for approximately $670 million in cash. Additionally, the two companies have entered into a long term leasing agreement where TowerCo will provide Sprint Nextel with wireless communications towers to support the company’s CDMA, iDEN and WiMAX networks.
The specific number of towers and final purchase price will be determined at closing of transaction. The transaction, subject to customary closing conditions, is expected to close in 90 days.
Bob Azzi, senior vice president of field engineering and operations at Sprint Nextel, said: By leasing rather than owning these network facilities, we can better focus on our core business of providing communications services to consumers, businesses and government customers. Significantly, this transaction provides Sprint Nextel with additional liquidity which gives us greater flexibility in managing our company.