Thoughts on the T-Mobile Sprint Merger

Now that T-Mobile and Sprint have merged, there are many questions about the impact for cell site landlords. These questions are valid in light of the information presented by Sprint and T-Mobile throughout the merger process, speaking of decommissioning many sites, keeping some Sprint sites, and integrating two different technologies into one cellular network.

Given the confusion, we provide the following opinions on several items we foresee as ‘hot buttons’ in the upcoming year.

Expect plays on fear

There are several aspects of the wireless industry in which we expect fear to be used as a motivator:

• Rent reduction demands: we expect the usual players to call and request or demand rent reductions or other lease modifications with the premise of having a better chance of keeping your lease.
• Lease extension demands: for leases with less than 5-7 years, we expect contractors of Sprint or T-Mobile to call and request or demand that you make changes to your lease in order to secure your site.
• Lease buyout requests: we expect additional activity across the industry, but especially at T-Mobile sites, potentially at reduced pricing levels, hoping that landlords will sell the leases to reduce risk.

Landlord-owned structures; beware of combining tenant equipment

As T-Mobile and Sprint combine networks, there is a probability that equipment will change. Many times combined equipment equates to increased weight/wind loading on Landlord-owned structures. These loads need to be analyzed and leases may need to be modified. Generally speaking, additional loading should benefit both landlord and tenant.

Decommissioned sites may result in abandoned equipment

During the last several decommissioning cycles landlords were left with unwanted equipment on their sites. Many times they were talked into accepting equipment under the premise that it would be easier to attract new tenants if equipment were in place. We can help you ascertain if this is accurate.

Responsible entities will change

• Landlords of many Sprint sites will see leases transfer to T-Mobile.
• Dish Network may acquire any of the 30,000 sites slated to be cut from the new T-Mobile network.

Gunnerson Consulting is available to answer questions regarding all aspects of cell site operations. Contact us today for your no-obligation consultation.