Nextel Partners Inc. said it has entered into an agreement with TowerCo Inc. to purchase, construct and own 300 cell towers for an undisclosed amount.
The agreement calls for TowerCo to purchase up to 92 existing towers from Nextel Partners, predominately in the carrier’s North, Southeast and Midwest operations, for $12 million. Nextel Partners also has granted TowerCo exclusive rights to build or buy future towers up to a combined total of 300 towers by the end of 2008.
TowerCo, which was formed in mid-2004 and headed by former SpectraSite Communications executive Richard Byrne, announced a deal in February with Cingular Wireless L.L.C. to build out more than 50 sites in Michigan and Ohio. TowerCo currently owns 41 towers and has an additional 161 under contract including the 92 it will acquire from Nextel Partners.
The deal follows similar tower selling announcements made recently by several wireless operators that analysts noted were positive attempts by carriers to monetize their tower portfolios and reduce operating expenses.
