AT&T and Verizon strike a deal to build cell towers with Tillman

AT&T and Verizon reached an infrastructure sharing agreement in which they will work with a third party, Tillman Infrastructure, to build hundreds of cell towers.

Tillman will build, own and operate the towers, small cells and smart cities infrastructure. AT&T and Verizon have committed to leasing and co-anchoring the co-located towers. Construction will begin in Q1 2018. Financial terms were not disclosed.

The three companies see the potential for significantly more new site locations in the future.

“We continue to focus on technology innovation and investing in the latest software platforms to provide the best possible customer experience on our network,” said Nicola Palmer, Chief Network Officer for Verizon Wireless. “At the same time, it is imperative to reduce operating costs. We are reviewing all of our long-term contracts as they come up for renewal and we are excited to develop new vendor partners to diversify our infrastructure providers.”

“We need more alternatives to the traditional tower leasing model with the large incumbents. It’s not cost-effective or sustainable. We’re creating a diverse community of suppliers and tower companies who will help increase market competition while reducing our overhead,” said Susan Johnson, SVP of Global Supply Chain, AT&T. “We look forward to working with Verizon as we establish site locations and sign new lease agreements with additional suppliers in the coming years.”

“Tillman is excited about the opportunity to work with AT&T and Verizon in order to further develop the cell tower model of the future,” said Suruchi Ahuja, CFO of Tillman Infrastructure. “Over the past year we have built a strong team at Tillman and are committed to rapidly building a leader in wireless infrastructure in the U.S. in order to best serve carriers and the broader communities in which we will enable connectivity.”