Pacific Gas and Electric (PG&E), the leading electric utility in northern California, agreed to its license agreements with wireless providers that attach their equipment to certain electric transmission towers and other utility structures to SBA Communications for $973 million.
PG&E is also entering into a strategic relationship with SBA, through SBA's wholly owned subsidiary, to sublicense and market equipment at additional attachment locations on up to 28,000 transmission towers across PG&E's extensive network. Through this arrangement, PG&E will receive a portion of future revenues from these sublicensed equipment attachment locations.
"This transaction adds a significant portfolio of high quality, exclusive locations to our outstanding existing US macro tower portfolio and SBA expects these assets to generate approximately $39.5 million in Tower Cash Flow in their first full year in our portfolio," said Jeff Stoops, President and Chief Executive Officer of SBA Communications. "As 5G network deployments are now a reality, we are excited to use our vast experience and industry leading position in order to facilitate the future additional use of these assets by wireless service providers for the collective benefit of the wireless industry, PG&E and SBA. We are also particularly pleased about the opportunity to work closely with PG&E over the coming years to maximize wireless deployments across their extensive network of transmission towers."
