Sprint pawning off cell towers for $670 mil

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Cell Tower Pawn Shop

As if you needed any further indication of Sprint’s downward spiral, they’ll be selling off 3,300 of their towers for $670 million to TowerCo. As bad as that sounds, TowerCo will actually be leasing these towers back to Sprint – think of it like outsourcing all of the gritty back-end work. Of course, with someone else handling all of that, it means that Sprint won’t have to keep all the tower maintenance crew on their end anymore and will probably lose a fair number of employees that TowerCo will be replacing. What do you guys think – savvy saving on Sprint’s part?

(via Engadget)

  • Chris L

    Ehhhh….we don’t know the particulars of the agreement, but I’d venture its not a good sign….

    If they are desperate for the capital, its like reverse mortgaging your house. Not a good idea unless you’re almost dead.

    If they aren’t desperate for the capital, then obviously this TowerCo can do it cheaper than they can. To me, that says they aren’t geared for efficiency, good organization, or any other good characteristics. Its not like outsourcing the IT or HR needs of a small company, we’re talking the bread and butter function. If 3M can outsource production of their sticky pads, it would raise serious questions about 3M’s viability.

    Of course, on the optimistic side, it could mean they are rolling out LTE or WiMax or something and have it ready to go, and just don’t want to deal with their legacy network themselves anymore. Right? Please?

  • Chris L

    Ehhhh….we don’t know the particulars of the agreement, but I’d venture its not a good sign….

    If they are desperate for the capital, its like reverse mortgaging your house. Not a good idea unless you’re almost dead.

    If they aren’t desperate for the capital, then obviously this TowerCo can do it cheaper than they can. To me, that says they aren’t geared for efficiency, good organization, or any other good characteristics. Its not like outsourcing the IT or HR needs of a small company, we’re talking the bread and butter function. If 3M can outsource production of their sticky pads, it would raise serious questions about 3M’s viability.

    Of course, on the optimistic side, it could mean they are rolling out LTE or WiMax or something and have it ready to go, and just don’t want to deal with their legacy network themselves anymore. Right? Please?