AT&T in Cell Towers Deal With Crown Castle

AT&T plans to lease a portfolio of cell towers, and sell some others, to Crown Castle International for about $4.85 billion as the telecom giant cashes in on consolidation among tower operators and seeks to spend its money elsewhere.

Under the deal, AT&T will lease the rights to about 9,100 towers and sell about 600 towers. The transaction is expected to close by year-end. AT&T said last month that it was exploring the sale of some or all of its cell towers. Under the deal, Crown Castle can lease and operate the towers with an average lease term of about 28 years. When the leases expire, the company will have the option to buy the towers for a total of about $4.2 billion. AT&T will sublease space on the towers for at least 10 years with an option to renew up to a total of 50 years.