07.25.2005
FiberTower Closes $150 Million Financing Round To Accelerate Growth into New Markets
Leading Alternative for Wireless Backhaul Services Secures the Second Largest Round of Telecommunications Funding This Year
San Francisco, CA, —FiberTower Corporation, a leading provider of backhaul services for wireless carriers, today announced the closing of a $150 million financing round led by existing investor Crown Castle International Corp. (NYSE: CCI), with strong participation from Oak Investment Partners and Affiliates; Tudor Investment Corp. and Affiliates; Goldman, Sachs & Co. and Meritech Capital Partners and Affiliates. As part of the round, Ben Moreland, CFO of Crown Castle International Corp, and Darryl Schall, Tudor Investment Corp. will join FiberTower's Board of Directors. In addition, American Tower Corporation (NYSE: AMT) and SpectraSite Communications Inc.(NYSE: SSI) continue to be active shareholders of FiberTower.
FiberTower's latest round of funding will be used to deploy the company's services to thousands of additional cell sites in both new and existing markets across the United States. Currently, FiberTower serves four of the top five major U.S. wireless carriers in nine metropolitan markets, growing from its initial deployment with Cingular Wireless in 2002. Built expressly to provide high capacity, high-reliability connectivity to cell sites, FiberTower has quickly become the leading alternate
backhaul service provider. With this $150 million investment, the total company financing reaches $225 million.
"The successful equity offering by FiberTower reflects our belief that there will be a significant demand for the backhaul solutions FiberTower provides to wireless carriers as the demand for additional wireless minutes of use increases," said John Kelly, CEO Crown Castle International Corp. Using an innovative technology approach of fiber and Digital Radio Links (DRLs), FiberTower replaces copper T1 lines that have historically accounted for over half of the service issues and high operational costs experienced by wireless carriers
“FiberTower sees the tremendous unmet demand for highly reliable backhaul services among wireless carriers, and our plan is to deliver against this demand by bringing FiberTower services to thousands of additional sites nationwide,” said Scott Brady, FiberTower CEO. “The demand for FiberTower services has been driven not only by consumers' growing appetite for wireless services but also by the carriers' own experience with our performance in the field over the past few years.”
About FiberTower Corporation
FiberTower Corporation is the first company to recognize and treat wireless backhaul as part of a mission critical network by delivering a service that eliminates legacy copper backhaul, a weak link that inhibits growth, scalability and service quality in wireless networks. Wireless carriers, who recognize that their network is the heart of their differentiation and success, now have an alternative backhaul provider that enables them to protect and enhance their brands and reputations built on a superior network.
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