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Sprint Sells Its Cell Towers

Article Comments  49  

Jul 24, 2008, 8:11 AM   by Eric M. Zeman

Sprint announced the sale of nearly all its cellular towers to TowerCo for $670 million in cash. The deal includes approximately 3,300 CDMA and iDEN network towers. TowerCo will take over the running and maintenance of the towers, and Sprint will lease the use of the towers from TowerCo so it may continue to run its network. The sale frees up Sprint personnel from managing the towers, and gives Sprint a large amount of cash, both of which will help it focus on its core business of providing communications services.




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SS EarlGoodman

Jul 24, 2008, 9:28 AM

this spells CATASTROPHY!

This was a terrible move on Sprints part. There is no way that these two companies will be able to coordinate well enough for the service to run smoothly. One hiccup in coverage or cell distruption and and it will be a battle to get the other company out to service it. Although it is rather fun to see sprint spiral down the toilet like last weeks turd that didnt get flushed.
SS EarlGoodman said:
Although it is rather fun to see sprint spiral down the toilet like last weeks turd that didnt get flushed.

不 不 不 不 不 不 不 不 不 My thoughts exactly!...
Sprint and many of its peers have been selling towers and then leasing them back to use.

With this sale, expected to be completed in about 90 days, Sprint will continue to own only a relative handful of the 65,000 towers that support its national ...
Hahaha Bash bash Sprint Bash hahaha..

Yeah... I am sure you have a business degree and know that a company with millions of customers is making a bad call with their company.
For years now at that!
this is definately a fishy move on sprints behalf. seems to me that what they are doing is milking a dying cow for all its worth before bailing out.
Is this really news. This has been on the slate for quite awhile, RCR profiled this months ago.

Sprint is one of the few carriers that operates/owns its towers. Although I think they need an infusion of capital right now, the amount they are receiv...

Jul 24, 2008, 9:50 AM

Really a bad idea?

I know we're all too busy bashing Sprint as usual to actually think about the story here, but if it can end up being lest costly to lease the towers, than to build, maintain, and have whole departments set up for maintenance than is this really such a bad idea? It's not like this is something new...
I think the larger point that people are missing is that Sprint still owns all of the equipment, etc and responsibility for maintaining it. This is only a sale of the tower structure itself and the surrounding land. It's not like if there's an outage,...

Jul 28, 2008, 12:51 PM

Improves their balance sheet

So this allows them to further their balance sheet and if they want to they can sell some more. They can pay off some of their long-term debt or spend some of that money on other products services or increase their capital expenditures. This is actually a great thing.

Jul 28, 2008, 12:49 PM

Common business practice

This is actually a common business practice and they don瞽璽竅┤ want to be a developer that holds assets as in cell phone towers but to focus on their core competencies. They need to focus on their operations not managing and maintaining towers. Look for this trend to continue.

This is actually a common practice in this industry.

Jul 24, 2008, 8:46 AM

WOW can you say cash strapped!!!!!!!!!!!!!

Ha Ha some business do this but in this case sprint needs the money! 不 Looking worse and worse everyday.
Sprint isn't going bankrupt or anything...but I guess my question is, what if TowerCo doesn't want to lease to Sprint anymore? Wouldn't they have the right not to since they would own the towers? I am sure Sprint has some 100-year agreement with the c...
Nevermind. I just read the press release. It looks like they are just putting tower management in the hands of someone else and there is indeed a long term agreement where TowerCo has to let Sprint use the towers.

But what does that mean for new t...
Nope. Too busy being a Sprint basher to research.
...on the recent markets that VZW is going to dump.

Sprint could be thinking about buying customers back.

Jul 24, 2008, 4:39 PM

I love the fact....

That you are all experts on market conditions, experts on how much money a company is making, and experts on everything relating to carriers you have no involvement in.

To add to that thought: do you think someone @ Sprint woke up today and said "Lets sell all our towers!!!!!111ONE!"? Seriously? This is called a business PLAN. It was planned, executed, and successfully implemented by people who get paid more than any of you. Speculation is one thing, but seriously guys, get off your high horse and use your brains abit before opening your mouths(or before clicking the submit button).
You're right. They are not stupid for doing something like this. But the fact that my coverage is weak, and their poor customer satisfaction makes it look like they are making people mad.
Tell em! @ youareretarded
someone else posted that wimax uses less towers, so if thats true this could be smart, sell (or rent) what you dont need to pay for what you do need

Jul 24, 2008, 10:22 AM

Its a preiview of things to come.

SunCom did the same about a year before they sold to T-Mobile. Cleans up the books and lets perspective buyers know exactly what they are in for.
sprint as a wireless phone company is evolving into the future. in order to do this , it means to take a small step backward and eliminate dead weight. voice calling is going to be done through data rather than 2 separate entities as it is now. with s...
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