Global Signal Inc. signed long-term master antenna site leases with USA Mobility Inc., opening the door for USA Mobility to lease space on sites owned or leased by Global Signal.
Global Signal was negotiating a new lease with USA Mobility for the sites under the expired lease originally with Arch Wireless Holdings Inc., which merged with Metrocall Holdings Inc. to form USA Mobility. The leases apply to all equipment USA Mobility has on Global Signal’s sites and are backdated for an effective date of July 1, expiring Dec. 31, 2008.
“Our new agreement with USA Mobility reflects a true win-win relationship among our companies,” said Global Signal President David Grain. “It will allow USA Mobility to efficiently rationalize its network while creating an incentive for USA Mobility to concentrate its transmitters on our national portfolio of wireless communications sites. The agreement also provides Global Signal with a predictable long-term revenue stream from a leading provider of paging products and other wireless services.”
Global Signal owns, leases or manages more than 11,000 towers and other wireless communications sites.
USA Mobility counts around 5 million paging subscribers and sells Nextel service from Sprint Nextel Corp.
Industry analysts said paging is not a critical issue at Global Signal, noting that revenue from paging companies has dropped from about 20 percent of total revenue to about 7 percent in June 2005 and is headed to below 5 percent.
