Trump-T-Mobile/Sprint-How It Impacts Your Cell Tower Lease
On December 7th, Japanese tech billionaire investor Masayoshi Son met with President-Elect Donald Trump to discuss his firm SoftBank’s investments in the U.S. technology market. Following the meeting, Son and Trump proclaimed Son’s intentions to invest $50 billion in US markets over the coming years.
This news sent the stock prices of T-Mobile and Sprint skyrocketing due to one fact: SoftBank owns Sprint and SoftBank wants T-Mobile.
In 2014, Son led an effort for Sprint to acquire T-Mobile; however, the deal ultimately fell apart following discussions with U.S. regulators who have made it clear that they do not desire a further reduction in the number of major cellular carriers in the U.S. below the current four players: AT&T, Verizon, T-Mobile, and Sprint.
However, with a new Executive Administration on its way in, many in the cellular industry are beginning to bet on a reduction in telecommunication regulations and are hoping for a green light for industry mergers. These mergers would be great for these large companies, but landowners could be whistling a different tune.
How does this affect you if you have a cell site lease?
Anytime two providers merge, it can create overlaps in coverage, redundancy in cell tower sites, and multiplicity in telecom equipment in the same geographic area.
Ultimately, this may lead to reduction in the value of your cell tower lease, or, worst case, the termination of that agreement.
Vertical Consultants can assist you in being “pro-active” and not “reactive” to changing industry environments.
Call us today for a free consultation and to see how we can assist you in getting ahead of the game.
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