Commnet Wireless, a subsidiary of ATN International (NASDAQ: ATNI), has entered into a $167.5M agreement with AT&T to build AT&T’s First Responder Network Authority (FirstNet) in the Southwest of the United States.
If AT&T locates their equipment on a Commnet tower, both parties will enter into a lease agreement with an initial term of eight years, with an option to renew for seven additional five-year terms. Although it is not confirmed, typically in the industry the initial term of eight years is guaranteed rent payable to Commnet.
For the build out of new towers, Commnet will build the tower and lease the ground and will assign both the tower and the lease to AT&T once the site has been constructed. Commnet will then provide maintenance for the tower for an initial term of ten years, with five successive three-year renewal terms, unless either party gives notice of non-renewal.
According to rrmediagroup, the agreement was disclosed in a Commnet SEC filing. In AT&T’s SEC filing they said they have total reimbursements from the government for FirstNet during the first six months of $134M for 2019 and $336 million for 2018.
Have You Been Contacted By Commnet?
If you have been contacted to lease your land by Commnet or AT&T, give us a call today to discuss the value of your cell tower lease.