Boston, MA 05/07/2014 (wallstreetpr) – There have been widespread speculations that communications site operator American Tower Corp (NYSE:AMT) is in deal talks with two Israeli telecom carriers namely Cellcom Israel Ltd. (NYSE:CEL) and Pelephone Communications. However, no party in the said talks has come out clearly to state their position, therefore, heightening speculations even the more.
However, American Tower has broken its silence over the matter to state that it has no interest in responding to media speculations.
Well, that response is usually supposed to put the matter to rest. However, that is not the case as pundits believe that it is ordinary that companies would deny being in deal talks when definitive agreements have not been reached. As such, it should not come as a surprise when the company and the named carriers announce collaboration eventually.
Beating regulator barrier
According to speculations that American Tower Corp (NYSE:AMT) has now dismissed, the company was reported to be in talks with Cellcom and Pelephone to acquire their towers and then lease back the facilities to them. That would see the operators receive payments for their investments and also book tower rental costs as expenses. Furthermore, the move was seen as a clever strategy by the two carriers to circumvent regulatory issues that have made it hard for them to share networks.
American Tower Corp (NYSE:AMT) provides communication sites sharing services that help carriers to reduce their infrastructural costs while also limited construction of new sites. The tower sharing also makes it easy for carriers to upgrade their networks or even achieve more collaborative arrangements among themselves.
In China, for instance, the country is reviewing the telecommunications policy aimed at increasing competition among operators while also reducing the need for more sites. As such, the country’s giant carrier China Mobile Ltd. (ADR) (NYSE:CHL) is likely to share its many sites across the country with rivals China Unicom and China Telecom. The companies are being urged to form a joint venture that will manage and acquire telecom infrastructure on their behalf.