American Tower raised its full year revenue forecast by $135 million after signing a new long-term lease deal with AT&T, which is expected to accelerate 5G and public safety network deployments.
The pair offered little detail, but noted the agreement includes a simplified leasing process and expanded site development services for American Tower’s US sites.
JR Wilson, AT&T VP of tower strategy and roaming, said in a statement the deal is “designed to drive efficiency and flexibility improvements directly benefitting our speed in deploying the latest technologies,” including 5G and its FirstNet emergency communications network.
The move comes as AT&T prepares to supplement its early mmWave 5G launches with broad low-band coverage later this year. It signed similar lease agreements with Crown Castle and CitySwitch in April 2018.
During a recent earnings call, American Tower CEO Jim Taiclet said the company expected to benefit from US operators’ increased focus on using low- and mid-band spectrum for 5G, noting it owns “40,000 really well-positioned high-capacity macro sites” in the country.
Inclusive of the AT&T deal, American Tower forecast full-year 2019 property revenue of $7.34 billion to $7.47 billion and net income of between $1.73 billion and $1.79 billion.Subscribe to our daily newsletter Back