Telecom giant, Sprint was close to reaching an agreement to buy competitor T-Mobile. However, the deal fell through last week when they could not agree to final details.
We remained skeptical of this transaction, while other consultants were predicting the gloom and doom of this merger. We were hesitant to instill fear into clients, as we are aware of the touch and go nature of the telecom industry.
If the merger had been approved, cell tower lease values and cell tower lease buyout prices for both Sprint and T-Mobile cell tower leases could have plummeted. A similar merger occurred years ago, when Nextel and Sprint merged. Nextel later announced to decommission 6,000 cell towers and, as a result, investors stopped buying Nextel leases. Other less-experienced consultants were using this as a guideline to advise and scare cell tower landlords.
During the talk of the proposed merger, other consultants were advising cell tower landlords to cash out of their T-Mobile and/or Sprint cell tower leases without delay. On the other hand, Vertical Consultants continued to provide guidance for property owners with Sprint or T-Mobile leases based upon their individual circumstances and not just boilerplate advice.