It was a few short years ago that telecom giants Sprint and T-Mobile first began discussions about a merger. However, the deals fell through when final details could not be agreed upon. Yesterday, the two companies announced the massive merger will in fact take place, leaving just three major wireless carriers within the US. The new company will be the third largest in telecommunications, just behind AT&T and Verizon.
The combined company will remain under the name T-Mobile and hopes to create a nationwide network for 5G, helping the US become a leader in connectivity. The merger must still clear anti-trust regulations, which may prove difficult.
How Will The Merger Impact Cell Tower Leases?
The impact for cell towers is yet to be determined. Cell tower leases and buyouts could lower in value as combining these two companies would indicate overlapping towers would be used, cancelling existing leases. During a previous merger between Nextel and Sprint as many as 6,000 cell tower leases were decommissioned in an effort to save costs.
Yet, with the aggressively competitive landscape for 5G, there is no way to predict exactly how the merger will play out. All landlords and property owners will need to consider individual circumstances and should seek consultation for their specific situation. It may not be time to rush straight into a cash out, but rather receive guidance from experienced experts in navigating future decisions.