Answer
Feb 07, 2017 - 07:22 AM
So the short answer is yes. Many of American Tower leases with Sprint were done on a rolling basis- where Nextel could not terminate until the end of the 5-year term they were in. Accordingly, as these leases are being terminated, American Tower then approaches the landowner to see about buying the lease or extending it at what may be worse terms.
You should be careful- in some cases, we believe that American Tower may imply that Nextel is decommissioning their equipment but without saying they are actually terminating their lease with American Tower. However, Sprint may have other needs for the site. So while Nextel is technically leaving, Sprint may be still on the tower.
However, there are clearly situations where Nextel is terminating and American Tower has no revenue on the tower. To be sure- just ask American Tower whether they will have any revenue at all on the tower after Nextel decommissions. If they can't or won't tell you- that isn't a good sign. If they say directly there is no revenue on the tower, then more than likely telling the truth.
If you need help evaluating this- please reach out to us with the details. If we can't help- we will let you know.
You should be careful- in some cases, we believe that American Tower may imply that Nextel is decommissioning their equipment but without saying they are actually terminating their lease with American Tower. However, Sprint may have other needs for the site. So while Nextel is technically leaving, Sprint may be still on the tower.
However, there are clearly situations where Nextel is terminating and American Tower has no revenue on the tower. To be sure- just ask American Tower whether they will have any revenue at all on the tower after Nextel decommissions. If they can't or won't tell you- that isn't a good sign. If they say directly there is no revenue on the tower, then more than likely telling the truth.
If you need help evaluating this- please reach out to us with the details. If we can't help- we will let you know.
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