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Crown Castle Forks Over $2.4 Billion to T-Mobile in Tower Deal

“(Reuters) – T-Mobile USA, the No. 4 U.S. mobile provider, has agreed to sell the rights to operate 7,200 of its wireless broadcast towers for $2.4 billion to Crown Castle International Corp to help its parent Deutsche Telekom pay back debt.

Crown Castle also has the option to pay another $2.4 billion to buy the towers outright from T-Mobile USA at the end of the lease term for each tower, under the deal announced Friday.

T-Mobile USA has been trying to sell its wireless towers since its proposed purchase by AT&T Inc failed last year due to regulatory opposition.

T-Mobile USA, which is spending $4 billion on a network upgrade, has also been looking for ways to become more financially independent from its parent.

Crown Castle estimates the towers will generate about $125 million to $130 million in adjusted funds from operations before financing costs in 2013.”

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