Vancouver-based Telus Corp. — the former Alberta Government Telephones — one of Canada’s largest wireless carriers, is looking to sell nearly half of its cell tower network in a deal that could top $1 billion, as major telecoms seek cash to pay down soaring debt and fund expansion.
Quoting anonymous sources “familiar with the sale process”, The Globe and Mail reported Telus has hired TD Securities to market a 49.9% stake in its 3,000 wireless towers, pitching the sale to private equity firms, pension funds and international telecom infrastructure players.
The move comes as Canadians continue to pay some of the highest wireless rates in the world, with affordability concerns mounting.
Telus’s tower network generated approximately $160 million in revenue last year, with cash flow of $110 million, according to sale documents reviewed by The Globe.
Analysts estimate the entire portfolio could be worth between $1 billion and $3 billion, and said Telus is seeking a top-tier valuation before proceeding with a sale.
While Bell (BCE Inc.) and Rogers Communications Inc. — Canada’s two other dominant telecoms — have not announced similar sales, sources say they are watching closely as Telus tests the market. Rogers’ towers could be worth as much as $6 billion, while BCE’s network is valued at up to $4 billion.
Like Telus, Bell is the former Ontario government telephone monopoly.
Telus currently carries about $29 billion in debt and is under pressure to raise cash after years of heavy investment in fibre networks, healthcare tech and agriculture ventures.
The company also faces rising costs from a new federal spectrum fee structure, which is set to increase wireless carriers’ payments to the government by hundreds of millions of dollars over the next decade.
CEO Darren Entwistle told investors last month that Telus is open to monetizing assets, saying, “If we like the economics, if we like the deal… it is something we would consider.”
Telus has already outlined plans to sell $500 million in ‘copper assets’ — old fashioned land lines — and could raise up to $3 billion from real estate sales. The tower sale would add another major cash injection as the company looks to shore up its balance sheet.
While global telecoms have long sold off tower assets to raise capital, Canada has been an exception. Approximately 95% of Canada’s wireless towers are still owned by the big three carriers, compared to just 3% in the US and 30% in Europe.
According to Statistics Canada, In 2021, less than half (47.4%) of Canadian households reported having a landline, while over half (52.2%) reported having a cellphone but no landline.
With the advent of new technologies like Starlink’s satellite service observers say it’s a matter of time before physical wireless towers disappear too.
For years, Canadian carriers argued that owning their towers helped keep service reliable and efficient, but the tide is shifting as pressure mounts to cut costs. Rogers’ recent $7 billion tower deal with Blackstone was the first major sale of its kind in Canada and Telus appears to be following suit.
Still, consumer advocates warn that these deals could ultimately mean even higher wireless prices. “When telecoms sell off infrastructure, they often lease it back at a premium,” said a telecom industry expert. “Over time, those costs tend to get passed down to consumers.”
With Canada already ranking among the most expensive countries in the world for mobile services, many Canadians will be watching closely to see whether the sale of Telus’s towers improves affordability — or makes their phone bills even worse.
