AT&T And Verizon Cooperating To Build Towers In 2018
Early 2018, America’s two largest carriers, AT&T and Verizon, are building out hundreds of new joint cell towers across the country. These new joint towers are designed for both companies’ cell masts and will be built by a newcomer in the cellular network market, Tillman Infrastructure. The two companies are co-running the project because, according to Nicola Palmer, Verizon’s Chief Network Officer, “It is imperative to reduce operating costs.” Combining multiple carriers to operate a cellular network is a sensible decision as it will reduce financial costs.
Tillman Infrastructure was founded in 2013 and is considerably newer to the cell tower market compared with the old hands in the business – companies such as Crown Castle, American Tower and SBA Communications, which have operated since the 1980s or 1990s. Interestingly enough, AT&T Senior Vice President of the Global Supply Chain, Susan Johnson, explained: “We need more alternatives to the traditional tower leasing model with the large incumbents. It’s not cost-effective or sustainable.”
This is good news for AT&T and Verizon, and it’s good news for Tillman Infrastructure. It’s also good news for customers of both of these two carriers, as the new network towers will be established in areas that currently offer poor coverage. Perhaps Verizon will be building out coverage for those areas it has cut off large numbers of customers? It’s bad news for the more established network infrastructure companies.