In a nod to contractors stressed by the COVID-19 outbreak, American Tower has issued a new 30-day payment policy for the near future. Industry leaders applauded the move as essential to keeping critical infrastructure operating throughout the pandemic.
In a letter sent to contractors, an unnamed American Tower representative said, “First and foremost, I wanted to let you know that in an effort to alleviate any potential financial burdens you may be experiencing during these difficult times, ATC will be switching you to 30-day terms for any invoices that are already received and approved,” the letter read. “Taking this further, any invoices received and approved in April will also be entered into 30-day terms. Our standard rules for invoicing will continue to apply.”
Todd Schlekeway, President and CEO of NATE: The Communications Infrastructure Contractors Association, issued a response to the notice. “On behalf of NATE’s 957 member companies, the association would like to thank American Tower Corporation for switching to 30-day terms on any contractor and vendor invoices that have been received and approved during the month of April.”
Schlekeway said the move is to be celebrated as it will help provide much needed cash flow to the companies who are currently on the front lines. ”Lagging and extended payment terms have long been an issue that has negatively impacted the companies and vendors tasked with deploying America’s networks,” he said.
Payment lag has been a long-standing issue in the tower industry. Inside Towers reported some larger contractors have been waiting 90 to 120 days to pay infrastructure workers. “It is NATE’s desire that the other wireless carriers and vertical realtor/tower owner companies will follow American Tower Corporation’s lead,” Schlekeway said, “and reduce their payment terms to a standard 30 days as well.”