Monday January 31, 7:04 am Eastern Time
Company Press Release
American Tower Strikes 600 Tower Agreement with Iusacell in Mexico
BOSTON--(BUSINESS WIRE)--Jan. 31, 2000--American Tower
Corporation (NYSE:AMT - news) today announced that its
subsidiary American Tower Corporation de Mexico S. de R.L. de
C.V. (ATC Mexico) has entered into an agreement with Nuevo
Grupo Iusacell, S.A. de C.V. (NYSE:CEL, BMV:CEL), the second
largest telecommunications provider in Mexico. The agreement
provides American Tower with the opportunity to construct
approximately 200 build-to-suit towers and market a portfolio
of approximately 400 existing towers. American Tower will
retain the exclusive rights to acquire the approximately 400
existing towers through 2005, or earlier at Iusacell's
option, subject to certain restrictions.
The build-to-suit towers will be constructed over the next
two years in key metropolitan areas where Iusacell's
expansion plans are most aggressive. These towers will be
built to accommodate significant co-location demand, which
will come from national and regional cellular, PCS, paging,
microwave back-haul and other telecommunications service
providers in Mexico. Wireless growth in Mexico has tripled to
6.9 million subscribers since 1997 and is projected to double
in the next four years (Source: Strategis Group, September
1999). The existing group of wireless towers that will be
marketed under this agreement are located in urban and rural
areas of Mexico City, Guadalajara, Veracruz and Acapulco.
Most of these towers have been significantly underutilized
and offer capacity for future growth.
Michael Gearon Jr., Executive Vice President and Director of
American Tower, added, ``Through the relationship we
established with TV Azteca and now with Nuevo Grupo Iusacell,
we have quickly grown to be one of the leading owners and
marketers of tower clusters in Mexico. This transaction
provides us more new construction in key populated markets,
and an overall concentrated network of towers from which to
maximize new co-location sales.'
Tom Burgos, Vice President and Chief Technology Officer of
Nuevo Grupo Iusacell, stated, ``We are pleased to be
partnering with ATC Mexico as we continue to build out our
digital network in Mexico. American's experience and
reputation for high quality performance standards gives us
confidence that the integrity of our existing tower
structures will be maintained, while also ensuring that
our expansion timelines will be met.'
Nuevo Grupo Iusacell, S.A. de C.V. (NYSE:CEL, BMV:CEL) (New
Iusacell) was organized as a limited liability stock company
under the laws of Mexico on August 6, 1998. As a result of
the exchange offer completed in August 1999, New Iusacell
holds substantially all of the capital stock of Grupo
Iusacell, S.A. de C.V. (Old Iusacell).
Grupo Iusacell, S.A. de C.V. (NYSE:CEL.Y, BMV:IUSACEL) (Old
Iusacell) is a leading independent telecommunications company
in Mexico. It provides wireless cellular service in four of
Mexico's nine regions in the central portion of Mexico
(including Mexico City) covering a total of 67 million POPs,
representing approximately 69% of the country's total
population. New Iusacell and Old Iusacell are under the
management and operating control of subsidiaries of Bell
Atlantic Corporation.
American Tower is the leading independent owner operator and
developer of broadcast and wireless communications sites in
North America. Giving effect to other pending transactions,
American Tower operates approximately 10,400 sites in the
United States and Mexico, including approximately 300
broadcast tower sites. Of the 10,400 sites, approximately
9,000 are owned or leased towers and approximately 1,400 are
managed and lease/sublease sites. Based in Boston, American
Tower has regional hub offices in Boston, Atlanta, Chicago,
Houston, San Francisco and Mexico City. For more information
about American Tower Corporation and ATC Teleports, please
visit our web sites www.americantower.com and
www.atcteleports.com.
This press release contains ``forward-looking statements'
concerning future expectations, plans or strategies that
involve a number of risks and uncertainties. The Company
wishes to caution readers that certain factors may have
affected the Company's actual results and could cause results
for subsequent periods to differ materially from those
expressed in any forward-looking statement made by or
on behalf of the Company. Such factors include, but are not
limited to (i) substantial capital requirements and leverage
principally as a consequence of its ongoing acquisitions and
construction activities, (ii) dependence on demand for
wireless communications, use of satellites for internet data
transmission, and implementation of digital television, (iii)
the success of the Company's tower construction program and
(iv) the successful operational integration of the Company's
business acquisitions. The Company undertakes no obligation
to update forward-looking statements to reflect subsequently
occurring events or circumstances.
Contact:
American Tower Corporation
Investors - Anne Alter, 617/375-7500
or
Media - Michael Gearon, Jr., 770/953-9400 |
