American Tower Comments on Possible Spint/T-Mobile Merger
Published on: 16th Dec 2013
By: Ian Mansfield
Following the weekend's rumours of a possible merger between US mobile networks T Mobile and Sprint one of the big tower operators has issued a comment on how that could affect its own finances.
For the quarter ended September 30, 2013, pro forma for American Tower's acquisition of Global Tower Partners and sites from Nextel, Sprint and T-Mobile accounted for approximately 16% and 10%, respectively, of American Tower's consolidated operating revenues.
It can be presumed that the two mobile networks would seek to reduce their tower count considerably by removing overlapping areas of coverage.
American Tower currently has separate leases for antenna space with Sprint and T-Mobile on the same site at approximately 5,500 communications sites owned or operated by American Tower. The revenue generated from T-Mobile on these sites represented less than 5% of American Tower's consolidated operating revenues for the quarter ended September 30, 2013, pro forma for American Tower's acquisition of Global Tower Partners and sites from Nextel International.
American Tower added that the average remaining non-cancellable current lease term on these sites with Sprint and T-Mobile is approximately 7 years.