Re Agreement
British Telecommunications PLC
16 November 2000
November 16, 2000
BT AND CROWN CASTLE MOVE FAST
TO MOBILISE 3G MARKET
BT and Crown Castle UK Ltd. today unveiled a commercial agreement designed to
fast-track provision of sites and infrastructure for the nation's 3G mobile
and wireless operators.
Under the terms of the deal, BT and Crown Castle plan to develop roof-space
and grounds at an initial 4,000 BT exchange sites around the UK. BT and Crown
Castle will select the best physical locations, build the necessary
infrastructure and enable operators to connect to the BT core network.
Demand for such services is expected to rise dramatically following the
completion of the third generation mobile licences' auction earlier this year.
The agreement brings together BT's network expertise and extensive exchange
property assets and Crown Castle's site portfolio, tower development and
experience in infrastructure roll-out.
The agreement will enable BT to unlock significant hidden value from its
exchange portfolio and is expected to enhance BT's pre-tax profits by more
than £50m p.a. The arrangement is for an initial 10-year period.
Paul Reynolds, chief executive officer of BT Wholesale, said: 'This is truly
exciting for BT Wholesale. The deal with Crown Castle will harness the unique
strengths of both organisations and result in a service from which everyone
will benefit.
'Speed to market will be essential for all of the 3G operators and we will now
be ideally placed to offer our wholesale customers a fully integrated, cost
effective solution including the very best in network connectivity. We are
delighted to be taking a lead in this profitable high growth area which will
help us deliver a world class service and continue to build on our strong
customer focus.'
Bob Giles, president and chief operating officer of Crown Castle UK said: 'We
are delighted to be working with BT Wholesale: Crown Castle currently has the
UK's premier portfolio of independent radio sites, and BT has the best fibre
network in the UK. The addition of the BT exchange locations means that
together, we are creating an unmatched facility for operators that should
satisfy their demand for sites and speed of rollout for new wireless
services.'
Preparatory work on the new delivery has already begun, and BT and Crown
Castle are now in contract discussions with a number of potential operators.
It is expected that the proposal, using shared infrastructure, will deliver
substantial cost savings for all the mobile and wireless operators, including
BT Wireless, in the roll-out of their 3G networks.
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Inquiries about this news release should be made to the BT Group Newsroom on
its 24-hour number: 020 7356 5369. From outside the UK, dial +44 20 7356 5369.
All news releases can be accessed from our web site: http://www.bt.com/
mediacentre
Notes to editors:
* The commercial arrangement remains subject to the execution of
definitive agreements.
* Inquiries to Bob Giles, President and COO of Crown Castle UK may be
made on 01926 416190
Forward-looking statements - caution advised
Certain statements in this release are forward-looking and are made in
reliance on the safe harbour provisions of the US Private Securities
Litigation Reform Act of 1995. These statements include, without limitation,
those concerning earnings.
Although BT believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that these expectations
will prove to have been correct. Because these statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements.
Factors that could cause differences between actual results and those implied
by the forward-looking statements include, but are not limited to: material
adverse changes in economic conditions in the markets served by BT and its new
businesses; future regulatory actions and conditions in BT's operating areas,
including competition from others in the UK and other international
communications markets; technological innovations, including the cost of
developing new products and the need to increase expenditure improving the
quality of service; prolonged adverse weather conditions resulting in a
material increase in overtime, staff or other costs; developments in the
convergence of technologies; the timing of entry and profitability of BT and
its new businesses in certain national and international markets and
fluctuations in foreign currency exchange rates and interest rates.
About Crown Castle:
Crown Castle International Corp. engineers, deploys, owns and operates
technologically advanced shared wireless infrastructure, including extensive
networks of towers and rooftops as well as analogue and digital audio and
television broadcast transmission systems. The company offers near-universal
broadcast coverage in the United Kingdom and significant wireless
communications coverage to 68 of the top 100 United States markets, more
than 95 percent of the UK population and more than 92 percent of the
Australian population. Pro forma for all closed and previously announced
transactions, Crown Castle International owns, operates and manages over
11,000 wireless communication towers internationally. For more information
on Crown Castle International, visit: www.crowncastle.com
In the UK Crown Castle currently owns more than 2,300 sites and works with
all the major mobile operators, including BT Cellnet, One 2 One, Vodafone
and Orange, amongst others. Broadcast customers include the BBC and
ONdigital.