Birmingham’s AT&T Microwave Tower may soon have a new assignment.
In a press release, AT&T announced that it has struck a real estate deal worth over $850 million. The corporation will be selling 74 underused properties to development firm Reign Capital while keeping access to the parts needed for its network operations. The AT&T Microwave Tower, located in downtown Birmingham near the Alabama Power Headquarters, was among the properties sold, earning the company $28 million.
The Tower, built in 1968 as part of AT&T’s microwave tower network, bridged the gap between early wired communication networks and modern fiber optic networks. The buildings, originally designed to house bulky telecom equipment for old copper networks, are now largely empty as AT&T shifts to modern fiber and wireless technology, which requires much less space. The deal will help AT&T cut operating costs while making money from properties it no longer fully uses.
AT&T will lease back only the space it needs to keep its network running and will also share in any future profits if the properties are redeveloped. The company has assured the public and employees that this move will not impact customer service or jobs.
The agreement builds on a similar but smaller deal AT&T made with Reign Capital in 2021. As the company phases out most of its old copper network by 2029, it may look at more such deals in the future.
