New Pact Includes 773 Towers, $317 Million
HOUSTON and ATLANTA JULY 12, 1999 Crown Castle International
Corp. (NASDAQ: TWRS) and BellSouth Corporation (NYSE:BLS) affiliates: BellSouth Carolinas
PCS, L.P., and BellSouth Personal Communications, Inc., have reached a preliminary
agreement, subject to BellSouths board approval and, with respect to certain assets,
the consents of certain BellSouth partners, for BellSouth to sublease through a master
sublease agreement all unused space on its 773 personal communications services (PCS)
towers to Crown Castle for $317 million in cash. In addition, Crown Castle and
BellSouths affiliates have agreed to enter into a new exclusive three-year
With this transaction, Crown Castle will be responsible for managing, maintaining and
leasing the available space on BellSouths 773 PCS towers located in North Carolina,
South Carolina, east Tennessee, and parts of Georgia. Crown Castle will also help
BellSouth keep up with infrastructure demand for its wireless service network through
exclusive construction of its build-to-suit towers. While Crown Castle will have complete
responsibility for the towers and their monitoring and maintenance, BellSouth will
continue to fully own its communications components including transmitters, receivers,
switching equipment, etc. BellSouth will pay a fee of $1,200 per month to Crown Castle for
its services with respect to BellSouths retained space on existing and build-to-suit
"We are proud to have been chosen by BellSouth to manage, operate and lease-up its
digital PCS tower footprint and construct their new builds going forward," stated Ted
B. Miller, Jr., Chairman and CEO of Crown Castle International. "These clustered
assets are prime properties in excellent growth markets and have no overlap with our
earlier BellSouth transaction that involved over 1,850 tower sites. Additionally, these
assets currently average approximately two tenants per tower, generating significant
cashflow immediately. These towers are also relatively new and 85 percent are over 150
feet tall, ideally positioned for co-location and lease-up."
"We have again chosen Crown Castle based on their overall competitive bid and
their existing operational expertise, allowing us to quickly close this deal," said
Ed Reynolds, president of BellSouth Mobility DCS. "While our towers were bid upon by
the major participants in the tower sector, pricing was not the differentiating factor and
Crown Castle did not offer the highest per tower bid. We chose Crown Castle
based on our belief that they are the premier outsourcing partner in the tower
Crown Castle will provide a full array of services for BellSouths existing and
build-to-suit towers including marketing, securing all the necessary clearances, site
location, procurement, tower design, construction, installation and maintenance.
The deal is expected to close by December 31, 1999.
BellSouth is a $23 billion communications services company. It provides
telecommunications, wireless communications, cable and digital TV, directory advertising
and publishing, and Internet and data services to more than 34 million customers in 19
countries worldwide. For more information visit: www.bellsouth.com.
Crown Castle International Corp. is a leading provider of communication sites
and wireless network services and provides an array of related infrastructure and network
support services to the wireless communications and radio and television broadcasting
industries in the United States and United Kingdom. Pro forma for all closed and
previously announced transactions, Crown Castle International owns, operates and manages
over 7,000 wireless communication towers internationally. For more information on Crown
Castle International, visit: www.crowncastle.com.
This press release contains various forward-looking statements and information
that are based on Crown Castle International managements belief as well as
assumptions made by and information currently available to management. Although the
Company believes that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to have been
correct. Such statements are subject to certain risks, uncertainties and assumptions.
Should one or more of these risks materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expected.