T-Mobile has agreed to sell operating rights to 7,200 cellular towers to Crown Castle International Corp.
The deal will require Crown Castle to pay $2.4 billion to T-Mobile, which will provide the nation’s fourth largest wireless carrier to invest in its new network.
Crown Castle will have exclusive rights to the towers, which means the ability to least, operate, and run the antenna towers for 28 years. At the end of the lease, Crown Castle will have the option to acquire the towers. The company will make the payment at the close of the purchase.
Deutsche Telekom, the mother of T-Mobile USA, has been scrambling for cash after its $39 billion merge with AT&T was denied by American regulators.
The deal with Crown Castle will help T-Mobile enhance spectrum and network issues, while allowing T-Mobile to rent some of the antenna space it just sold. Crown Castle will use the towers to provide service to competing carriers.
T-Mobile says that it hopes to catch up with Sprint, who is currently the nation’s third largest carrier. T-Mobile ranks fourth, and is hoping to catch up to its big brothers.
The 28-year agreement hints that T-Mobile plans to stay in the U.S. for the long haul. The deal will reduce the company’s debt by almost 2 billion euros.
The deal will close in the fourth quarter of this year.