Thursday, March 29, 2012

T-Mobile Could Sell Its Tower To Raise Money

In an aggressive move to raise money, T-Mobile is looking at selling some of its cell towers to help finance its ambitious vision of an LTE 4G network.
Apparently, the fourth largest cell phone company in the United States has gotten the ball moving already, obtaining the services of TAP Advisors to explore a sale, according to Bloomberg. A potential sale could garner as much as $3 billion.
Although this move makes much sense, T-Mobile has yet to come out and make any word of a tower sale official, as the company stated to AllThingsD “A tower sale remains under consideration.” The company also added, “T-Mobile USA continues to evaluate a tower sale as part of its self-funding strategy, but [we] have no specific plans to detail at this time.”
Reading between the lines, the Bloomberg report might not be off base. Ultimately, we may not know if T-Mobile is indeed planning to sell off some of its towers, but it does bring the suspicion of them working behind the scenes to raise cash.
Regardless, after AT&T failed to buy T-Mobile, the company has been refocused on vastly improving its network. This ramped up dedication grew when parent company Deutsche Telekom signed off on a $4 billion investment to help upgrade the T-Mobile network to support LTE. This caused the company to layout details of its 4G LTE expansion.
Thanks to AT&T’s botched deal, DT will be able to reuse current spectrum as well as spectrum gained as part of the breakup fee.
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