Verizon and Vertical Bridge Seal $3.3B Tower Lease Agreement for Nationwide Expansion
Verizon partners with Vertical Bridge in a landmark $3.3 billion, 10-year lease deal to optimize over 6,000 wireless towers across the U.S., enhancing network infrastructure and reducing operational costs.
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Highlights
- Verizon and Vertical Bridge finalize a $3.3 billion, decade-long lease for more than 6,300 wireless towers nationwide.
- Vertical Bridge gains exclusive rights to lease, operate, and manage towers from Verizon’s subsidiaries across all 50 states and D.C.
- This strategic move aims to lower tower-related expenses and foster vendor diversity within the telecom sector.
Verizon Communications (NYSE: VZ) has entered into a transformative $3.3 billion lease agreement with Vertical Bridge, the largest private broadband tower operator in the U.S. This partnership grants Vertical Bridge exclusive control over 6,339 Verizon-owned wireless communications towers, spanning every state and the District of Columbia.
The transaction includes an upfront payment of approximately $2.8 billion, with Verizon securing a 10-year leaseback arrangement on the towers, positioning itself as the primary tenant. This lease can potentially extend up to 50 years, ensuring long-term access to crucial infrastructure.
Additionally, Verizon will retain rights to additional tower space for future network expansion, subject to agreed terms. This initiative reflects Verizon's commitment to reducing infrastructure costs while enhancing operational flexibility and supplier diversity in a highly concentrated market.
The deal is anticipated to finalize by the end of the current year, marking a significant milestone in the telecommunications industry.
Verizon's stock experienced a modest 0.1% increase during Monday's trading session, contributing to an approximate 19% gain since the year's start.
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