New York-based Verizon is reportedly exploring options to sell thousands of its mobile network towers in the US, reported Bloomberg today. According to sources familiar with the matter, the telecom giant has hired advisers to gauge interest from potential buyers for a package of roughly 5,000 to 6,000 towers.
This move could potentially bring in more than $3 billion; though the deliberations are still in preliminary stages, there’s no guarantee they will result in a sale. Verizon representatives have declined to comment on the matter.
In 2015, Verizon sold the rights to lease and operate about 11,000 towers to American Tower Corp. for an upfront payment of $5 billion. This deal helped Verizon raise funds for airwave purchases and to pay down debt. The current tower package is expected to attract interest from infrastructure firms and strategic buyers.
If American Tower acquired Verizon’s portfolio, the company would own just shy of 50,000 towers in the US, eclipsing its nearest competitor, Crown Castle, by 9,000 towers.
Telecom giants have periodically used their mobile phone towers to raise cash. For example, AT&T sold 9,700 towers to Crown Castle International Corp. in 2013 for $4.8 billion, using the funds to upgrade its network.
While the exact reason for the potential sale is not disclosed, Verizon’s recent financial decisions suggest a strategic direction for the company.
Bloomberg reported today that Verizon CEO Hans Vestberg hinted at plans to adopt generative AI in its customer service operations in June.
Vestberg mentioned that this technology could help the company more efficiently match customer calls with suitable agents, potentially retaining 100,000 customers. However, implementing generative AI would require substantial investments, which could factor in Verizon’s decision to sell its towers as it struggles with its billion-dollar debt.