T-Mobile Signs Deal with American Tower
T-Mobile US signed a deal which is expected to deliver up to $17 billion in incremental revenue for American Tower. The long-term lease deal spans close to 15 years and will enhance T-Mobile’s access to the tower company’s portfolio of sites, the operator explained.
T-Mobile said in a statement that the agreement will enable continued rapid, efficient deployment of broad and deep nationwide 5G. The deal appears to answer criticism levelled by American Tower CFO Rod Smith in July, who noted a slower than expected start to new T-Mobile’s tower spend had been a factor in a $30 billion reduction in his company’s 2020 property revenue guidance, given its work with other US operators remained steady.
Mobile infrastructure operator SBA Communications had flagged similar concerns, but on T-Mobile’s earnings call in August, CEO Mike Sievert branded the comments as disinformation, asserting its network deployment was happening at pace. American Tower upped its full year property revenue guidance slightly on the back of the deal, from the $7.65 billion to $7.78 billion estimated in July, to $7.75 billion to $7.88 billion.