T-Mobile US and American Tower have signed a new long-term agreement which will enhance T-Mobile’s access to American Tower’s U.S. sites, both companies said in a release.
The deal is expected to deliver up to $17 billion in incremental revenue for American Tower.
The infrastructure deal will also facilitate T-Mobile’s deployment of 5G technology nationwide.
“Wireless mobility has never been more critical for consumers and businesses alike, and as technology continues to advance into 5G and beyond, that will only increase,” said Neville Ray, President of Technology at T-Mobile US. “Through our multiyear agreement with American Tower, we’ve secured T-Mobile’s ability not only to accelerate our aggressive 5G build, but also to continue to deliver connectivity for our customers well into the future.”
The partners also noted that the new agreement ensures T-Mobile US can serve Americans’ wireless needs for years to come and allows T-Mobile US to “increase momentum” on its rapid 5G deployment, adding coverage and enhancing speed in thousands of cities and towns across the U.S.
“We look forward to strengthening our valued partnership with T-Mobile through this mutually beneficial, long-term agreement,” said Tom Bartlett, CEO, American Tower Corporation. “We’re excited to help T-Mobile deploy next-generation 5G service across the country quickly and efficiently by utilizing our extensive nationwide portfolio of communications sites.”
In a virtual session at the Goldman Sachs Annual Communications Conference, Barlett said that the agreement with T-Mobile US will generate a predictable level of cash flow. “We’re trying to do over now a very long period of time is trying to bring predictability. And what we’ve been able to do is enter into a long-term arrangement with T-Mobile, where they have a predictable forecast of what their costs are going to look like and from our standpoint; it generates a predictable level of cash flow,” the executive said.
Barlett also noted that the deal will give T-Mobile a lot more flexibility in terms of how they want to add infrastructure to American Tower Corporation’s towers.
“And so given the growth that they have inherent in the business, the rollout of new technologies, new spectrum, the requirements that they have in terms of getting coverage and capacity out into the markets, they need that kind of flexibility to be able to engineer their own network plans. And so, this type of an arrangement allows them to do that,” Bartlett added.
T-Mobile US recently said that its 5G network now covers more than 250 million people across 1.3 million square miles. Earlier this month, the carrier announced that its 2.5 GHz 5G coverage is now available in more than 80 cities and towns across the U.S., including select areas in California, Indiana, Georgia and New York, just to name a few.