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A prominent analysis from Barclays recently opined that if the U.S. wireless market were to consolidate from four carriers to three, the result would be higher valuations for all carriers. This opinion was based in part on observations made in Canada, where three wireless carriers is the prevailing model. In Canada, carriers are able to produce higher than average revenue per user than what is currently being achieved in the U.S.

The obvious candidate for consolidation is the T-Mobile/Sprint merger, something that has been in the works for years and has been written about extensively by Vertical Consultants. Considering some financial struggles for Sprint as of late, and the respective parties desire to seize a larger hold of the U.S. wireless market, a merger continues to make more and more sense. The holdup to the merger was often seen as an executive administration who took an unfavorable view towards large scale mergers and acquisitions, even going so far as to block an AT&T/T-Mobile merger. However, with a new President at the helm, many in the cellular industry believe the government’s opposition towards such industry consolidation has reversed.

Consolidations in the wireless industry can create uncertainty for landowners with cellular site leases. If you are concerned or curious about the potential impact of a Sprint/T-Mobile merger, call us today for a free consultation and to see what we can do for you.