Verizon to lease cell towers to boost vendor diversity
09 October 2024
by Jonathan Andrews
Verizon will lease 6,339 wireless communications towers to Vertical Bridge, which the telecoms company hopes will support efforts to drive down tower-related costs and provide greater vendor diversity in a concentrated industry.
Vertical Bridge will obtain the exclusive rights to lease, operate and manage the towers across all 50 US states and Washington DC from subsidiaries of Verizon for approximately US$3.3 billion.
For city leaders, the deal could translate into more robust wireless infrastructure, supporting greater connectivity for businesses, residents, and smart city initiatives. The partnership also signals potential for future growth in digital infrastructure, which could bring new opportunities for urban development and innovation.
“[This deal is] the largest US tower transaction in almost a decade,” said Ron Bizick, President and CEO of Vertical Bridge. “The vision of the company founders 10 years ago was to create a permanent, private, and at-scale US tower company. These assets, together with our existing portfolio which includes thousands of young, purpose-built towers, enhance Vertical Bridge’s position as a fast, friendly, and flexible colocation partner to the wireless industry.”
The transaction is structured as a prepaid lease with upfront proceeds of approximately US$2.8 billion in cash. Under the terms, Verizon will enter into a 10-year agreement to lease back capacity from Vertical Bridge, serving as the anchor tenant, with options that could extend the lease term up to 50 years. Verizon will also have access to certain additional space on the towers for its future use, subject to certain restrictions.
Marc Ganzi, CEO of DigitalBridge– global alternative asset manager– and Vice Chairman of Vertical Bridge added: “This transaction … strategically positions us to capitalise on the growing demand for wireless infrastructure, especially as AI-driven technologies and 5G continue to reshape connectivity needs across industries.”
Image: Stefano Carnevali | Dreamstime.com