La Caisse de dépôt et placement du Québec and AMP Capital have plans to provide $500 million of financing to Tillman Infrastructure, an American developer and owner of telecommunication tower infrastructure.
This initial investment will help finance the construction of new telecommunications towers across the United States.
These new structures will satisfy demand for coverage in additional locations, provide new service opportunities for carriers, and increase the overall communications infrastructure in the United States. Under this agreement, the investment could eventually reach up to $1 billion based on future growth needs.
Founded in 2016 and based in New York, Tillman builds, owns and operates a portfolio of cell towers, which are core infrastructure assets used by wireless carriers to relay their cellular signals to mobile subscribers. Tillman began construction on its first sites in late 2017 and is actively building in over three dozen states across the United States.
In the next few years, mobile service providers plan on spending 15 percent to 20 percent of their revenue on capital expenditure to meet the growing demand from consumers and to cater to ever-increasing mobile data traffic. This represents approximately $40 billion in yearly investment. M&A activity within the sector is expected to increase the expenditure of telecom companies looking to capture the significant potential of 5G and the data market.
