Crown Castle Buying FiberNet to Boost Move Into Small Cells
Crown Castle International said Tuesday it's buying FPL FiberNet Holdings for $1.5 billion cash. FiberNet owns or has rights to about 11,500 route miles of fiber installed or under construction in Florida and Texas, including 6,000 miles in top metropolitan…
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markets, said a news release. The deal “bolsters our fiber available for small cells in markets where we see significant demand from our wireless carrier customers,” said Jay Brown, Crown Castle CEO. “As demand for wireless connectivity continues to grow, small cells are playing an increasingly important role in adding the network capacity and density needed to provide ubiquitous high-speed, high-capacity wireless services.” The tower company said the deal should close in the first half of 2017 and should immediately add to earnings. New Street Research raised some concerns in a note to investors. “We remain wary of CCI’s outdoor small cell endeavors; while they have accelerated top-line growth and earn decent yields, we believe their returns are below those that towers offer and will likely face pressure as other players compete in the small cell realm,” New Street said.