Are the chances increasing for a major increase in cell site decommissions in the near future? That is almost guaranteed if the application for T-Mobile/Sprint merger, filed with the FCC on June 18, is approved. And the timing for a likely approval couldn’t be better, given the recent federal judge ruling that the AT&T–Time Warner merger didn’t violate antitrust laws. It has been speculated by the Washington Post among others that this may be “setting the stage for more consolidation across corporate America”

A new website newtmobile.com has been created by T-Mobile and Sprint to publicize the advantages and potential savings of the merger for consumers. What it doesn’t mention is the effect the merger may have on individual cell tower owners through decommissioning or rate reductions.

However, a T-Mobile/Sprint brochure titled “Accelerating Competition in the 5G Era “dated June 19, 2018 and filed with the FCC, states that there will be significant operational expenses saving from decommissioning towers. “The opex savings derive from 35,000 decommissioned macro sites, 16,000 avoided Macro sites, and 50,000 avoided small cells”.

A benefit from the merger will be increased spending for new technologies and towers to fill in areas where there are few current Sprint or T-Mobile towers or where greater efficiencies can be obtained. 

If you are interested in finding out more about the Sprint/T-Mobile merger and its possible effect on your cell lease value, contact the professionals at Crescendo Capital Partners. One of our ground lease experts can address your specific concerns and situation. Call 203.972.3200 or email us.