On Monday Verizon communications Inc. and AT&T Inc stated that they finally agreed to charter hundreds of new cell towers from operator Tillman Infrastructure and owner, a shift they hope will bring them more leverage in negotiations with the major vendors of the U.S. tower.
The cell tower market of the U.S. is currently under the command of three companies; SBA Communications Corp, American Tower Corp, and the International Corp of Crown Castle. The agreement that was announced on Monday reflects that AT&T and Verizon, the second and the first biggest U.S. wireless carriers, are urging to hit deals with the other vendors in securing better prices for the tower that they use in transmitting wireless signals, as said by company officials and analyst.
Both carriers are in an attempt to add to their network capacity during the time when consumers are in use with the rising amount of cellular data.
The analyst at the New Street Research, Jonathan Chaplin said; carriers are always finding for new alternative partners in order to reduce their dependence on the giant three guys.
Being a part of the agreement Tillman will be constructing the towers, and the Verizon and AT&T will be serving as anchor tenants. In the first quarter of 2018 the construction work will take its initiative.
In an interview the senior Vice president of supply chain of AT&T, Susan Johnson said; that this AT&T and Verizon are working jointly with the help of new provider in order to put some competition within the mix. Further added that she truly hopes this will be a model of tomorrow.
In the afternoon trading, the shares were flat of the American Tower, whilst shares of Crown Castle were down at 0.3 percent and that of SBA Communications were low by 1.9 percent.